Planning an optimal business sale requires careful consideration and understanding of various sale options and structures, as well as a thorough understanding of the transaction’s effect on the business owner’s personal financial planning. Many owners leave money on the table during a sale while they stay focused on growing their business or on finding the right buyer. Effective exit planning involves many moving pieces and may be a multi-year process which is why it is crucial for business owners to prioritize their personal goals alongside the business’s exit planning readiness. By familiar ..read more

Real Estate Investing And Your Personal Financial Planning Often we see polarization among the investing public between those that invest and focus their financial planning primarily in the liquid securities markets and those that invest primarily in real estate. Our view is that under certain circumstances, liquid securities investing and illiquid real estate investing can be complementary. However, the key to navigating between these areas is having an appropriate framework for how to think about investing in real estate in the context of personal planning goals, risk management, liquid inv ..read more

Summit Fever describes a phenomenon where a mountain-climber approaches the summit of a climb they become more likely to take outsized risks. The achievement of reaching the peak becomes such a part of their identity that they are willing to take imprudent measures they would otherwise decide against. A large number of climber deaths have been attributed to this onset of irrationality. It’s not a hard task to draw parallels between this behavior and investors with concentrated stock positions, such as employees with equity compensation, heading into 2022. With markets at the high in late 2021 ..read more

I'll be honest - I didn't always give thought to the social impact of my investment choices. Like many people, I'd spend a couple minutes reading through the investment options available on my 401k, look at historical returns, and make my selections. But then I'd turn around that same day and spend half an hour in front of the laundry detergent aisle at the store researching surfactants to find the most eco-friendly brand. How is it that I cared about being a conscious consumer, and yet I paid no attention to where I was investing my life savings? Now, I don't think any of us would walk into ..read more

You've got so much equity compensation vesting over the next several years and your income has never been better. There's just one problem: You're not happy at work, and your discontentment is growing. You'd leave, but how would you ever find a job that pays this well? The Golden Handcuffs Problem Golden handcuffs are financial incentives given to key employees as a way of retaining talent. These incentives come in many forms, such as an above-market salary, a generous retirement plan, good benefits, or equity-based compensation.  Equity-based compensation in particular can offer tremen ..read more

Most business owners and entrepreneurs face an ever increasingly competitive and rapidly changing business environment with an incredible number of issues demanding their time, focus and headspace. Oftentimes their own personal finances don’t get the focus and time needed. Here are some strategies and tips for business owners that can help them make progress on their personal financial goals, save them money, and de-risk the impact of their businesses on their lives. Traditional Retirement Planning Doesn’t Work for Most Business Owners Traditional retirement planning doesn’t usually apply to m ..read more

As 2020 comes to a close, it’s an important time to revisit your financials to maximize savings, ensure you start the new year strong and to stay on track to accomplish your goals. From tax managing your investments to executing your charitable gifting strategy, here are some financial planning items you might want to consider as you get ready for 2021: Tax Manage your Investments. Tax loss and tax gain harvesting. Generally we advocate selling losing investment positions near the end of the year to offset capital gains. With the prospect of higher taxes in 2021, it may make sense to wait ..read more

The effects of psychological barriers and biases on investment decisions are well documented, yet still they often manage to be amplified when dealing with stock positions in an individual’s own company. Even investors who would normally consider holding a single stock foolish sometimes have a blind spot for their own equity compensation. Further compounding this is the investment axiom that broad and diversified equity portfolios increase to reflect long-term fundamental economic growth does not hold true in the case of a publicly traded individual company stock. Risks to the company managem ..read more

Most business owners and entrepreneurs face an ever increasingly competitive and rapidly changing business environment with an incredible number of issues demanding their time, focus and headspace. Oftentimes their own personal finances don’t get the focus and time needed. Here are some strategies and tips for business owners that can help them make progress on their personal financial goals, save them money, and de-risk the impact of their businesses on their lives. Traditional Retirement Planning Doesn’t Work for Most Business Owners Traditional retirement planning doesn’t usually apply to m ..read more

If you’re an individual with ISOs (Incentive Stock Options), you quickly learn that AMT (Alternative Minimum Tax) can become a very real consideration around exercising those options. Besides being introduced to a completely new tax, the associated MTC (Minimum Tax Credit) may be a further contributor to confusion you may be feeling. Now that we’ve gotten all the abbreviations out of the way, the following in an illustrative example to help you understand the interplay of ISOs, AMT, and the MTC. Let’s set the table for a very simplified example. This hypothetical individual is single and works ..read more