Tag: Financial Independence
What Are Roth Conversions and How Can They Benefit You?

What Are Roth Conversions and How Can They Benefit You?

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Roth conversions offer a powerful way to provide tax-free growth and withdrawals in retirement, but success depends on careful planning. 

By transferring funds from traditional IRAs or 401(k)s into a Roth IRA, you can manage taxes upfront. Allowing your investments to grow without future tax obligations. The key to maximizing these benefits lies in timing and understanding how tax brackets, estate planning, and asset allocation all play a role.

Matt Nelson, CFP® and Jacob LaRue, CFP® provide insights on how to leverage Roth conversions effectively, ensuring your financial decisions align with your long-term goals. Whether you’re in your working years or nearing retirement, this episode helps you avoid common pitfalls, reduce tax burdens, and set up a strategy that benefits both you and your heirs.

Key Highlights:

  • Roth Conversion Basics: Understand the differences between conversions and contributions, and the key tax implications to look out for
  • Tax Bracket Optimization: Learn how to time your conversions during low-income years and avoid higher taxes during your peak earning periods
  • Asset Allocation Strategies: Discover why Roth IRAs are ideal for high-growth investments, maximizing your tax-free gains
  • Estate Planning Benefits: Learn how Roth conversions can lower the tax burden for your heirs, especially if they are in higher tax brackets
  • Mistakes to Avoid: Plan for estimated tax payments, and stay up to date on recent rule changes for inherited IRAs
  • Charitable Giving Considerations: Find out why Roth conversions may not be ideal if your IRA is intended for charitable donations
  • And much more!

Resources:

Connect with Matt Nelson:    

Connect with Jacob LaRue: 

Connect with Perspective 6 Group:       

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How Roth IRAs Work

How Roth IRAs Work

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Wondering how Roth IRAs give you a tax advantage? Curious about non-retirement uses like college and buying a home? This episode dives deep into the strategic advantages of Roth IRAs and their role in preparing you for your financial future.

For working professionals, navigating retirement planning is critical. This episode reveals how Roth IRAs can be pivotal tools in your financial arsenal, offering benefits beyond retirement savings. Whether you’re a young investor or a high earner, understanding the nuances of Roth IRAs can lead to significant long-term gains.

Join host Matt Nelson, CFP®, Managing Partner at Perspective 6 Group, and Jacob LaRue, CFP®, Head of Financial Planning, as they discuss the most effective strategies for optimizing Roth IRAs. Discover how these accounts can be leveraged not just for retirement, but also for estate planning, emergency funds, and even home purchases.

Key Highlights:

  • Roth IRA Basics: Learn how Roth IRAs differ from traditional retirement accounts, with after-tax contributions and tax-free withdrawals in retirement
  • Strategic Contributions: Explore optimal strategies based on your lifetime tax bracket and income fluctuations to decide between Roth and traditional IRAs
  • High Earner Strategies: Learn about Backdoor and Mega Backdoor Roth IRAs, designed to help high-income earners maximize their savings into retirement
  • Estate Planning: Discover the benefits of using Roth IRAs in estate planning, including tax-free inheritance and the absence of required minimum distributions
  • Non-Retirement Benefits: Uncover how Roth IRAs can fund emergencies, facilitate home purchases, and reallocate excess 529 plan funds for education
  • And much more!

 

Resources:

Connect with Matt Nelson:    

Connect with Jacob LaRue: 

Connect with Perspective 6 Group:       

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How to Navigate and Optimize Non-Qualified Stock Options

How to Navigate and Optimize Non-Qualified Stock Options

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How do NSOs work? When are NSOs taxed? Are NSOs earned income? Get all your NSO questions answered on this episode.

Unlocking the potential of your non-qualified stock options (NSOs) can be essential in achieving financial independence, particularly in the MedTech industry. Understanding the intricacies of NSOs can empower you to make informed decisions about your equity compensation and overall financial plan.

Join host Matt Nelson, CFP®, and Jacob LaRue, CFP®, as they explore the strategic planning required for exercising NSOs. Learn the importance of understanding grant agreements, vesting schedules, and the overall impact on your financial plan to avoid common pitfalls like unexpected tax bills and concentration risk.

Key Highlights:

    • NSOs Overview: Gain insights into how NSOs work, including the difference between the grant price and the current stock price, as well as the significance of the vesting schedule
    • Exercising NSOs: Explore different methods of exercise, cash vs. cashless, and understand the implications of each approach
    • Tax Implications: Learn about the tax consequences of exercising NSOs, including ordinary income taxes on the bargain element and capital gains taxes on future gains
    • Concentration Risk: Discover strategies to manage concentration risk, especially if a significant portion of your portfolio is tied to one company’s stock
    • Three-Step Planning Process: Understand the process of reviewing stock plan documents, building a financial plan, and creating a game plan for exercising NSOs
    • Withholding and Tax Planning: Identify the need for additional tax planning due to insufficient withholding on NSOs and the importance of keeping up with tax estimates to avoid penalties
  • Practical Guidance:
    • Early Exercise Option: Exercising NSOs early can be beneficial if the stock price is low, allowing future gains to be taxed at capital gains rates instead of income tax rates
    • Scenario Planning: Evaluate different exercise scenarios to determine the best strategy for your financial situation, considering factors like market concentration and tax impact
    • Regular Check-ins: Regularly review and adjust your financial plan, especially during key periods like Spring and Fall to ensure you stay on track and avoid surprises
  • And much more!

 

Resources:

Connect with Matt Nelson:    

Connect with Jacob LaRue: 

Connect with Perspective 6 Group:       

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Preparing for Financial Independence with a Lifetime Income Plan

Preparing for Financial Independence with a Lifetime Income Plan

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Retirement isn’t a one-size-fits-all endeavor. Crafting a personalized income plan empowers you to prepare for financial independence and gain control of your future.

Matt Nelson, CFP® is joined by Head of Financial Planning at Perspective 6 Group, Jacob LaRue, CFP®. The pair discuss the art of crafting an effective income plan that sustains your lifestyle through all of life’s stages. With an emphasis on the critical role of understanding cash flows, taxes, and diverse income sources. They offer insights to help you avoid the unnecessary stress of prolonged working years, so you can enjoy life.

Key Highlights:

  • Financial Independence: Learn to create a comprehensive income plan to support your lifestyle throughout retirement
  • Life Phases: Explore saving and spending strategies tailored to the three stages of life
  • Tax Strategies: Plan for taxes as an expense over your lifetime
  • Practical Planning: Utilize tools budgeting tools to track spending and income, as well as retirement tools to ensure you are on track
  • Investment Insights: Leverage your portfolio to fill income gaps to optimize pension and Social Security benefits to protect long-term stability 
  • Enjoying Life: Financial planning should empower you to enjoy life, including taking sabbaticals or mini retirements
  • And much more!

Tune in to secure valuable insights and practical advice on working towards financial independence and crafting an effective income plan.

 

Resources:

Connect with Matt Nelson:    

Connect with Jacob LaRue: 

Connect with Perspective 6 Group:       

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Estate Planning: Beyond the Basics with Jen Santini, J.D. (Ep. 18)

Estate Planning: Beyond the Basics with Jen Santini, J.D. (Ep. 18)

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Have you planned how your assets will be handled after you’re gone?

Building on foundational estate planning strategies, this episode of the MedTech Wealth Advisor Podcast, hosted by Matt Nelson, CFP® with guest Jen Santini, J.D. gets into advanced estate planning strategies for MedTech professionals and entrepreneurs. They explore the critical roles of wills and trusts for asset distribution after death and incapacity planning. With a breakdown of the three types of trusts and what might be the best option for you. This conversation aims to simplify estate planning as an integral part of both professional and personal financial management.

Key Highlights:

  • Wills and Trusts: Matt and Jen emphasize the key roles of wills and trusts in avoiding state-enforced asset distribution and in managing assets effectively after death or during incapacity
  • Living Revocable Trusts: The episode underscores the importance of living revocable trusts for property owners across multiple states or those with complex family situations like blended families, ensuring adaptive asset control
  • Trust Types Explained: Jen distinguishes between revocable and irrevocable trusts, highlighting their advantages and limits with a focus on asset protection and tax implications
  • Tax Planning with Trusts: They explore strategic tax planning with trusts to maximize tax benefits and preserve estate value, particularly effective in high-tax states
  • Elder Care and Asset Protection: The significance of early planning for elder care and asset protection is discussed, aiming to solve asset transfer issues and maintain eligibility for public benefits
  • Planning for Minor Children and Heirless Estates: The necessity of appointing trustworthy guardians and trustees is highlighted, focusing on protecting the financial futures of minors and managing estates without direct heirs
  • And much more!

Tune in to gain actionable advice and ensure your estate planning aligns with your wishes, safeguarding your legacy for the future.

 

Resources:

Connect with Matt Nelson:    

Connect with Perspective 6 Group:       

Connect with Jen Santini: 

 

About Jen Santini: 

From an early age, Jen knew she wanted to go to law school. Not because she came from a family of attorneys but because she enjoyed solving problems and helping others. Being a lawyer was a way to combine her passions. However, she did not expect that she’d ultimately practice primarily as a trusts & estates attorney. 

Prior to forming Sykora & Santini PLLC, Jen spent the majority of her professional career in the financial services industry in Boston. During law school, Jen worked in the legal department at Putnam Investments and then transitioned to MFS Investment Management. At both companies, she focused on legal matters complying with SEC, FINRA and state regulations. In addition, Jen has worked on corporate governance matters, such as reorganization of departments, rebranding of products, and mergers and acquisitions.

Upon graduation from law school, Jen moved to the Twin Cities. She did not intend to start her own firm but partnering with Jayne to do so has been one of her best decisions. She loves working with people and enjoys learning about her clients’ life stories – both personally and professionally. 

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The Fundamentals of Estate Planning with Jen Santini, J.D. (Ep. 17)

The Fundamentals of Estate Planning with Jen Santini, J.D. (Ep. 17)

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Did you know you have an estate plan whether you know it or not? 

Uncover the critical importance of choosing the right proxies in estate planning with professional guidance on this episode of the MedTech Wealth Advisor Podcast. Matt Nelson discusses the fundamentals of estate planning with Jen Santini, an esteemed leader within the Minnesota State Bar Association. Throughout the episode, Santini unravels the complexities of estate planning, providing structured strategies and emphasizing its necessity for everyone, not just the wealthy.

Key Highlights:

  • Estate Planning Essentials: Santini stresses the broad scope of estate planning, including vital preparations for unexpected incapacitation
  • Choosing the Right Proxies: The discussion spotlights typical mistakes in proxy selection, advocating for choices that reflect personal values instead of defaulting to family hierarchies
  • Understanding Power of Attorney: Santini dispels common myths surrounding POA, focusing on spousal rights and the scope of responsibilities
  • Complexities of Guardianships and Beneficiaries: Insights into the delicate issues of nominating guardians and beneficiaries underscore the critical role of wills
  • Call to Proactive Planning: The episode wraps up with a persuasive call to action for listeners to actively engage in their estate planning to avoid legal and familial complications
  • And much more!

Tune in to gain actionable advice and ensure your estate planning aligns perfectly with your wishes, safeguarding your legacy for the future.

 

Resources:

  • Do you have a topic you’d like to learn more about on this podcast? Send us an email at mwapodcast@focusfinancial.com to let us know. We look forward to hearing from you!

Connect with Matt Nelson:    

Connect with Perspective 6 Group:       

Connect with Jen Santini: 

 

About Jen Santini: 

From an early age, Jen knew she wanted to go to law school. Not because she came from a family of attorneys but because she enjoyed solving problems and helping others. Being a lawyer was a way to combine her passions. However, she did not expect that she’d ultimately practice primarily as a trusts & estates attorney. 

Prior to forming Sykora & Santini PLLC, Jen spent the majority of her professional career in the financial services industry in Boston. During law school, Jen worked in the legal department at Putnam Investments and then transitioned to MFS Investment Management. At both companies, she focused on legal matters complying with SEC, FINRA and state regulations. In addition, Jen has worked on corporate governance matters, such as reorganization of departments, rebranding of products, and mergers and acquisitions.

Upon graduation from law school, Jen moved to the Twin Cities. She did not intend to start her own firm but partnering with Jayne to do so has been one of her best decisions. She loves working with people and enjoys learning about her clients’ life stories – both personally and professionally. 

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Building Roots: A Passion for Legacy With Matthew Finley, CFP® (Ep. 13)

Building Roots: A Passion for Legacy With Matthew Finley, CFP® (Ep. 13)

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Can a background in medicine and microbiology revolutionize financial advising?

Discover the remarkable transformation of Matthew Finley, CFP®, Partner & Senior Financial Advisor at Perspective 6 Group. From an aspiring doctor to a successful financial advisor, this is a fascinating episode of The MedTech Wealth Advisor Podcast. Join our host, Matt Nelson as he dives into Matthew’s unique journey, highlighting how personal values and pivotal life decisions can profoundly shape one’s career in financial management.

Key Highlights:

  • Pivotal Career Shift: Dive into Matthew’s decision to move from aspiring doctor to financial advisor, a choice influenced by his quest for work-life harmony
  • Early Inspirations: Discover how Matthew’s grandfather, an astute investor, ignited his passion for finance
  • Diverse Career Journey: Trace Matthews’s path from microbiology research to thriving in the dynamic world of business finance and eventually finding his calling in financial advising
  • Resilience During Financial Crisis: Learn about Matthew’s strategic approach to financial advising during challenging times, including the 2008 recession and recent economic fluctuations
  • Empathetic Client Relationships: Understand how Matthew’s background enables him to relate to clients seeking honest and compassionate financial advice
  • The Man Behind the Advisor: Peek into Matthew’s personal life, from his achievements in distance running to cherishing moments with his family and the great outdoors
  • Wisdom for Aspiring Advisors: Listen to Matthew’s insights on pursuing a financial career passionately while maintaining a balance with personal life
  • And much more!

 

Looking Ahead: 

Gear up for an inspiring conversation on the Perspective 6 Group investment philosophy in the next episode, where Matthew and Matt will share how diverse life experiences enrich financial decision-making and strategy formation.

 

Resources:

  • Do you have a topic you’d like to learn more about on this podcast? Send us an email at mwapodcast@focusfinancial.com to let us know. We look forward to hearing from you!

Connect with Matt Nelson:  

Connect with Matthew Finley:  

Connect with Perspective 6 Group:      

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How To Master ESPPs (Ep. 7)

How To Master ESPPs (Ep. 7)

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Are you making the most of Employee Stock Purchase Plans (ESPPs)? 

From the intriguing to the unexpected, Matt Nelson, CFP® guides MedTech professionals through the intricacies and strategic use of ESPPs in this insightful episode. He sheds light on how ESPPs, often an underutilized benefit, can significantly impact financial well-being, especially in the MedTech industry.

Key Highlights:

  • Unlocking ESPP Secrets: Discover the intricate workings of ESPPs, the ‘look back’ feature and its impact on stock purchasing
  • The Art of Profitable Stock Buying: Learn how purchasing stocks at a discount can yield substantial financial returns, with real-life examples to illustrate
  • Navigating the Tax Maze of ESPPs: Gain expert insight on ESPP tax complexities and learn how holding periods affect tax rates
  • Strategic Stock Selling: Rethink the necessity of holding stocks with insights on when to sell for optimal tax benefits
  • Maximizing ESPP Contributions: Understand how to effectively manage finances for ESPP contributions, and how they differ from traditional 401(k) plans
  • The Double-Edged Sword of ESPPs: Explore the risks and tax complications associated with ESPPs and learn how to navigate them wisely
  • Tailoring ESPPs to Your Financial Goals: Learn how to align ESPPs with your financial objectives, whether it’s for significant purchases or long-term planning
  • And much more!

 

Resources:

Connect with Matt Nelson: 

Connect with Perspective 6 Group:     

Connect with Jacob LaRue: 

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Planning for Financial Freedom Through Life’s 3 Phases (Ep. 5)

Planning for Financial Freedom Through Life’s 3 Phases (Ep. 5)

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Is there more to wealth than just the digits in your bank account?

Join CERTIFIED FINANCIAL PLANNER™ professional, Matthew Nelson, as he digs beneath the surface of what we know as financial independence. While financial independence means living without depending on generating continuous income, Matthew provides a different goal to aspire to: achieving ‘financial freedom’ by aligning your wealth with your core values.

Listen in as Matthew unveils:

  • The difference between financial independence and financial freedom
  • Life’s money stages: enjoying now, planning for surprises, and leaving something behind
  • Discovering the deeper role of a financial advisor beyond merely investments
  • The path to financial independence: income, taxes, and investing. Which is most important?
  • Rethinking retirement: Is it only about the money?
  • Thinking about money, family, and hard conversations while planning your estate
  • And much more!

 

Resources:

Connect with Matthew Nelson: 

Connect with Perspective 6 Group: 

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