As a highly compensated employee you may find that company stock is now a part of your overall salary package. For some, managing these different types of stock grants and planning what to do with them can be frustrating and confusing.
An incentive stock option (ISO) is a company benefit that gives you the right to buy shares of stock at a discounted price with a tax break on the profit.
One of our investing tools at Lawrence Financial Planning is a bond ladder. We always want to make sure our clients have available cash to take care of their needs.
Yes, we all know the rules about paying off a mortgage: if she had a low interest rate mortgage she could take the extra cash and earn more in the market. At the time she still received a tax break for having mortgage interest. She wouldn’t want to be house rich and cash poor, and a mortgage is a hedge against inflation.
ESPPs can be a great way to build wealth and more quickly achieve your personal financial goals.
Don’t believe the marketing hype about rolling your 401(k) into an IRA just because you left your job. You don’t have to. Your next move should make sense in your overall financial plan and your Roth conversion strategy.