Tag: Income Planning
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:       

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More