The Malcolm On Money Guide to Restricted Stock Units

Having a comprehensive estate plan is essential for everyone, regardless of age or asset level, because it ensures that your wishes are clearly documented and legally enforceable in the event of incapacity or death. An estate plan protects your loved ones from unnecessary legal complications, minimizes potential disputes, and provides clear instructions for managing your healthcare, finances, and assets.  

Without a plan in place, critical decisions about your well-being and the distribution of your estate may be left to the courts, often at a higher emotional and financial cost to your family. Establishing an estate plan is a proactive step that gives you control, preserves your legacy, and provides peace of mind for you and those you care about.

When people think about estate planning, it is often pictured as something only married couples with 2.5 children, 2 dogs, and a sprawling estate with a white picket fence consider. In reality, it is something single and unmarried individuals can also explore, but this planning becomes even more critical because of the lack of a "default" decision-maker like a spouse. 

Whether you are early in your career, approaching retirement, or anywhere in between, creating a thoughtful estate plan is an essential step towards protecting yourself and the assets you've worked hard to build. It allows you to appoint someone to handle your affairs quickly and privately rather than dragging personal matters through public probate proceedings. It also helps to protect your estate from avoidable taxes and legal fees. 

Establishing a revocable living trust is the bedrock of any well-crafted estate plan. However, its effectiveness depends entirely on how – and whether – you choose to fund it. This entails taking a thoughtful, strategic approach to determining which assets should be placed in the trust and how their ownership is structured.  

Funding your trust should not be viewed as a simple paperwork exercise. Rather, it’s a critical process that shapes how your estate will be managed and distributed. Each asset presents its own set of legal, tax, and practical considerations, making it essential to evaluate not just whether it should be included, but how it should be titled to best serve your broader planning goals. 

For tax payers, few things can cause a spike in in your blood pressure faster than receiving a letter from the Internal Revenue Service (IRS). But before you go into a doom spiral imagining all of the worst-case scenarios, it is important to take a step back and understand what an IRS notice actually means.  

Yes, the IRS has the authority to assess taxes, impose penalties, and even in extreme cases, seize assets. More often than not, it is a routine matter that can be resolved without much trouble as long as it is handled properly. 

Every December, Americans scramble to find last-minute ways to lower their tax bills. And one of the most common strategies—particularly among high-income earners—is to make charitable donations often by writing a check to support their favorite cause. 

While cash contributions are simple and straightforward, they are not always the most tax-efficient way to give. For those who own stocks that may have appreciated significantly from when they were purchased, donating shares instead of cash can provide a double tax benefit. In this instance, the donor not only avoids capital gains taxes on the appreciation but also receives a deduction for the stock’s full fair market value. 

For most Americans, your home is likely your most valuable asset. In fact, for centuries, it has been the greatest source of inter-generational wealth transfer by a wide margin. This explains why many parents weigh the idea of designating their adult children as co-owners on the property's title as an estate planning mechanism.  

Unfortunately, most stop short out of fear, and for good reason. Giving up financial control of such an important asset is a scary thought for many seniors. Thus, ensuring a smooth transfer of ownership to heirs while retaining full control during one’s lifetime is a common concern for older homeowners.

Inheriting money or investment assets from a loved one often brings a complex mix of emotions. On one hand, there’s gratitude and an acknowledgment that someone cared enough about you to leave behind a financial legacy. On the other, there is an unspoken pressure to preserve what was left behind. It’s almost as if spending even a penny or making any changes would somehow dishonor the person’s memory.  

This hesitation is especially common with investments such as stocks, mutual funds, and rental real estate. And even when a person inherits an asset that does not make financial sense to hold onto long-term, they feel it would be wrong to sell or adjust what their parent or loved one thoughtfully built over decades. 

For high-income earners who often find themselves phased out of many tax deductions, the rules around saving for retirement are no better. However, there is one complex yet beneficial maneuver available: non-deductible contributions to a traditional IRA. 

While contributions to traditional IRAs are typically appealing because they can be deducted from your taxable income, those with higher earnings may hit income thresholds that disallow this deduction. The opportunity to make non-deductible contributions, though, remains a viable strategy. 

In the past few years, alternative investments have surged in popularity among retail investors looking to diversify beyond the perceived limitations of traditional stocks and bonds. Once reserved exclusively for the ultra-wealthy and institutional investors, alternative investments—including private equity, real estate, private credit, hedge funds, farmland, and even collectibles like art and wine —are now more accessible than ever.  

Today, the appeal of this alternative asset class lies in its potential for outsized returns. However, it was initially intended to provide investors with a hedge against inflation, as well as the promise to reduce a portfolio’s correlation with the stock market, which offers a buffer in times of volatility. Therefore, it is possible that there is a misunderstanding between the banks, brokerages, and other financial institutions offering alternatives to retail investors and the investors who are eagerly embracing them.