Tag: Tax Planning
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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Important Tax Planning Numbers for 2024 (Ep. 11)

Important Tax Planning Numbers for 2024 (Ep. 11)

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Limits, Contributions, Deductions – Do you know the critical updates for each in 2024?

Join Matt Nelson, CFP® & Jacob LaRue, CFP® in the latest episode of the MedTech Wealth Advisor Podcast. Together they share insights for professionals and entrepreneurs, providing essential tax planning strategies and contribution limits to set you up for success this year.

Key Highlights:

  • 2024 Contribution Limits: Discover updated limits for 401(k)s and HSAs, explained for different age groups
  • Optimal Contribution Strategy: Learn how to strategically prioritize contributions to maximize benefits
  • Comprehensive 401(k) Limits: Gain insights into the total contribution limits, encompassing all sources
  • Pre-Tax vs. Roth Contributions: Understand the combined contribution limits for different 401(k) types
  • Tax Bracket Tactics: Explore how to utilize tax brackets for efficient contribution strategies
  • Income Phase-Outs: Learn how rising income affects eligibility for savings plans
  • Social Security and Medicare Planning: Get strategies for managing benefits and premiums based on income and age
  • Capital Gains and Deductions: Master tactics for high earners to optimize taxes and deductions
  • And much more!

 

Resources:

Connect with Matt Nelson:   

Connect with Jacob LaRue:   

 Connect with Perspective 6 Group:       

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RSUs Part 2: How To Transform RSUs into Wealth (Ep. 10)

RSUs Part 2: How To Transform RSUs into Wealth (Ep. 10)

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Are Restricted Stock Units (RSUs) just a fancy bonus, or a wealth-building tool?

Building on the foundational knowledge from Part 1, this episode of the MedTech Wealth Advisor Podcast digs deeper into the strategic management of Restricted Stock Units (RSUs). Join host Matt Nelson and financial planner Jacob LaRue as they further explore the nuances of RSUs, offering advanced strategies for professionals looking to fine-tune their financial strategy.

Key Discussion Points:

  • Balancing RSUs with Overall Financial Goals: Matt and Jacob discuss integrating RSU strategies with broader financial plans, emphasizing diversification and risk management
  • Tax Optimization Techniques: Detailed exploration of how to minimize the tax impact of RSUs, including alignment with other financial events and tax strategies
  • RSUs in Changing Market Conditions: Insights into managing RSUs amidst stock market volatility, including tactics for when to hold or sell
  • Long-term RSU Planning for Career Moves: Strategies for handling RSUs during job transitions, including considerations for public versus private company RSUs
  • And much more!

 

Resources:

Connect with Matt Nelson:  

Connect with Jacob LaRue:  

 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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