Considering an Early Retirement Offer from Your Employer? Here's What to Consider First
Considering an Early Retirement Offer from Your Employer? Here's What to Consider First

Right now, a growing number of employers are offering more tenured workers large, lump sum payments to turn in their key cards and credentials and retire early. In times of economic uncertainty, companies will immediately begin to reassess payroll costs and make decisions on how and where to reduce overhead to lower their fixed expenses. An early retirement offer typically includes a few months’ salary, extended health insurance coverage, and accelerated vesting on any 401(k), stock, or pension-related payouts owed.

These offers can sometimes be customized for individual employees. But in many cases, buyout offers are uniform and extend to an entire organization, a particular department, or to any employee who has fulfilled a minimum length of service. Early retirement packages often target people with seniority, a group that tends to earn higher salaries and have increased healthcare costs.

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Malcolm EthridgeRetirement
Ways to Make Your Charitable Giving Count Come Tax Time
Ways to Make Your Charitable Giving Count Come Tax Time

When it comes to financial planning, charitable giving is a well-established tool often used to assist individuals and small businesses with year-end tax planning. With strategic and well-timed donations, you can minimize your tax liability while executing a broader philanthropic strategy and supporting the causes you hold dear. Traditionally, people think of charitable giving as simply writing a check to a few nonprofits near the end of the year and claiming a deduction on that year’s tax return. While that approach can certainly be valuable, it is a bit limited in its ability to maximize philanthropic impact as well as tax minimization.

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Malcolm EthridgeTaxes
Time to Negotiate Your Next Pay Increase? Ask for Stock Instead of More Cash
Time to Negotiate Your Next Pay Increase? Ask for Stock Instead of More Cash

If you are fortunate enough, there comes a point where you are making enough money and the next dollar in salary you are able to command will not be very additive to your overall net worth. Though it may sound counterintuitive, once you reach a certain income threshold, every next dollar earned has a diminishing return. That does not mean that it should not be welcomed with open arms, but that by delaying the receipt of that dollar, you are able to unlock more of its value. Ultimately, your concern should be less about how much you make and more about how much you get to keep.

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Malcolm EthridgeStock Options/Equity Compensation
Life Insurance Is Not a Financial Plan
Life Insurance Is Not a Financial Plan

These days, life insurance is often improperly sold as a complete financial plan. Life insurance salespeople are generally concerned with the amount of insurance a person has the capacity to pay for rather than the amount of coverage they actually need. As a result, the sales conversation often focuses on the death benefit of the policy and its ability to build up cash value instead of what it's designed to do - provide the insured’s beneficiaries with some level of financial security upon their death.

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Malcolm EthridgeInheritance/Estate Planning
If You Own Property in More Than One State, You Need a Trust
If You Own Property in More Than One State, You Need a Trust

In the world of personal finance, rarely is it possible to find advice that is cut-and-dry and delivers a definitive yes or no. However, in this case, the rule of thumb applies almost uniformly. Any person who owns real, fixed assets (houses, land, buildings, etc.) in multiple states can save their loved ones months of extra paperwork and unnecessary fees by utilizing a living trust.

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Malcolm EthridgeInheritance/Estate Planning
Your Employer Just Granted You Stock Options. Now What?
Your Employer Just Granted You Stock Options. Now What?

Stock options are no longer just for the few executives at the very top of the org chart. Many publicly traded companies now make them available to non-executive staff. And while splitting annual compensation between cash and stock has some real benefits, it can certainly be confusing. Be sure to remain aware of your choices, the term of your options, and the tax consequences of your exercise decisions. Although plans and grants from various companies may resemble each other in many ways, no standard stock option plan exists.

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Malcolm EthridgeStock Options/Equity Compensation
You Just Turned 50 and You're Behind on Your Retirement Savings. Here's How to Catch Up
You Just Turned 50 and You're Behind on Your Retirement Savings. Here's How to Catch Up

When it comes to saving for retirement, it is never too early to start, but the last decade or so before you reach retirement age can be especially critical. By then, you will probably have a pretty good idea of when (or if) you want to retire, and, more importantly, still have some time to make any necessary adjustments. With the proper planning and a willingness to save and invest, the odds of catching up are not insurmountable.

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Malcolm EthridgeRetirement
The TCJA Blessed the Backdoor Roth IRA. Why Aren’t More People Using It?
The TCJA Blessed the Backdoor Roth IRA. Why Aren’t More People Using It?

Buried in the text of the 2017 Tax Cuts and Jobs Act (TCJA) lies a statement that Congress approved, blessing the so-called “back-door” Roth IRA. The back-door Roth IRA conversion strategy allows high-income taxpayers to take advantage of the fact that while there is a limitation on who can contribute to a Roth IRA directly, there is neither an income limit on contributing to a traditional IRA nor income restrictions on converting an existing traditional IRA to a Roth IRA. So, by utilizing the back-door approach, your contributions will still make their way into the Roth IRA eventually..

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Malcolm EthridgeTaxes
How Much is Too Much When It Comes to Owning Stock in the Company You Work For?
How Much is Too Much When It Comes to Owning Stock in the Company You Work For?

For many executives and senior level managers, compensation comes in the form of a set salary, a cash bonus (or two), and some form of equity ownership in the company. For those leaders of publicly traded companies, equity ownership typically comes in the form of company stock. And while one’s natural instinct is to accumulate as much stock in the company, while still an employee, as possible, is that always the best choice?

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Malcolm EthridgeStock Options/Equity Compensation
Roth IRAs Are Not for Everyone. Here’s Who They Are For
Roth IRAs Are Not for Everyone. Here’s Who They Are For

The key advantage to utilizing a Roth Individual Retirement Account (IRA) is that when done properly, your withdrawals in retirement are not taxed. For that reason, it has become the most coveted retirement vehicle there is. Roth IRAs prompt many savers to wonder whether they should either begin contributing to or converting a portion or all of their taxable retirement funds into one.

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Malcolm EthridgeIRAs/Retirement Accounts
Just Inherited a Retirement Account from a Loved One? Here’s How to Keep the IRS from Taking Half
Just Inherited a Retirement Account from a Loved One? Here’s How to Keep the IRS from Taking Half

Baby Boomers are set to pass along somewhere between $60-75 Trillion to their heirs over the next 20 or so years. With that in mind, it is a safe bet that the IRS is licking its chops waiting to get its hands on those inherited assets before they flow to their intended beneficiaries. The more assets inheritors are able to keep, and ultimately defer from taxation, the more successful this massive wealth transfer will be.

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Malcolm EthridgeIRAs/Retirement Accounts, Inheritance/Estate Planning
Should You Invest or Pay Off Debt? It Depends
Should You Invest or Pay Off Debt? It Depends

It is not uncommon for individuals to experience a sudden windfall from either an inheritance, a legal settlement, a gift, or a bonus from their employer. If you have the good fortune to find yourself in this situation, there are several steps you should consider in order to help those dollars have their biggest impact. As common as it is, the decision on whether to pay off debt or invest is anything but cut-and-dry.

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Malcolm EthridgeFinancial Planning
The Intangible Benefits of Working with a Financial Advisor
The Intangible Benefits of Working with a Financial Advisor

In the last decade or so, there has been a fundamental shift in the personal finance industry, moving away from product sales and towards holistic planning involving one or multiple financial goals. Decades ago, the financial advice industry was designed to be great for the stockbroker. Today, it is far better for the investor. With less of a focus on asset management and more on honest, unbiased advice, it is becoming more about helping clients understand the best ways to save, spend, and invest their resources than it is about selling financial products.

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Malcolm EthridgeFinancial Planning
Why It Matters That Your Financial Advisor Is A Fiduciary
Why It Matters That Your Financial Advisor Is A Fiduciary

In April 2016, the Department of Labor released its “Fiduciary Rule” to the public. Though the rule was formally vacated in 2018, consumers’ awareness of the term fiduciary remained. By definition, a fiduciary is an individual or organization that takes on the responsibility of acting on behalf of another person or entity. They are duty-bound to act with the utmost honesty and integrity in any matters of law and/or finance.

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Malcolm EthridgeFinancial Planning
The Pros and Cons of Variable Annuities
The Pros and Cons of Variable Annuities

At first glance, variable annuities sound like a great retirement income solution for any pre-retiree who wishes to simplify their financial planning efforts. While variable annuities do have their place in the world, they are not a one-size-fits-all solution. When deciding whether to put money into a variable annuity versus another type of investment vehicle, it is advisable to first weigh the pros and cons.

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Malcolm EthridgeIRAs/Retirement Accounts