Merino Mindset
Practical Views on Money and Life
Does your company give you restricted stock units (RSUs) as part of their compensation package? But you're not sure what RSUs are or how they work?
RSUs are a great way to add extra equity to employees and give them a stake in the company. In a 2017 survey of 325 companies, 72% reported using RSUs in their compensation programs compared to only 37% a decade before. A shift towards companies providing a more comprehensive benefits package for their employees.
One of the perks of working with a company that offers benefits such as paid time off, health insurance, or a retirement plan, may come in the form of stock options. These are increasingly offered as you climb your career ladder at places like tech companies.
But what are stock options? And why should you care? Maybe this is a perk that you glance over because “you're not an investor.” Or the stock paperwork seems complicated.
However, stock options can be easy to grasp, and Merino Wealth wants to help you take control of this great financial benefit. Here is everything you need to know about them, and how you can use them to your advantage.
“He was a nice enough guy, but he immediately jumped to insurance, which turned me off. It didn’t really feel like he was putting my needs first,” said my friend recently.
“Well if he strictly just sold you that insurance policy, then he actually wouldn’t be required to put your best interest first,” I replied.
This friend had booked a consultation with an advisor and pretty quickly decided against hiring them. She seemed surprised by my answer, but this is often the case when you meet with an advisor.
A fiduciary is anyone acting on behalf of a person or organization with the standard of putting first the best interest of that person or org.
“When I started my job my company gave me equity compensation, but I don’t know what to do with it,” is a phrase I hear all of the time. Many times it’s followed by, “I really don’t understand this stuff. Please help me!” If this sounds like you then you’ve come to the right place. Our team frequently helps clients understand the types of equity-based compensation (like shares or stock options), taxes on equity compensation, how to value equity compensation, and much more.
Before making any financial decisions I think it’s important to have a basic understanding of what you’re dealing with. Our industry is full of confusing jargon. In the case of the term equity, there are actually two financial definitions.
What a difference a year makes! There’s been a lot going on at Merino Wealth. Three amazing people joined our team, we moved to a beautiful new office, and added a lot of wonderful new clients. Here are some of our team’s individual highlights both in and out of the office:
● Jessica was promoted from President to the position of Mother this year! After a pandemic pregnancy she had an adorable baby boy, Jackson “Jax” Merino Thoun, this summer.
Have you resisted or curtailed your investing because you aren’t confident about where or how to invest? Don’t let the five investing myths below hold you back. Investing in the stock market or choosing 401(k) funds doesn’t have to be complicated or even risky.
In previous generations, women had less access to money than they do now so it was common to hear “my husband takes care of that.” As our world has evolved, not only is this less common, but we’re also seeing that women are making better investment decisions than their male counterparts. These days, we’re seeing that female fund managers freak out less, manage their risk well, and outperform male fund managers.
The end of the year is the perfect time to take a look at your tax plan and consider if there are any opportunities to decrease what you will owe. Contributing to a Health Savings Account (HSA) is one step that can help you save money and minimize your taxes. The funds roll over year to year, so don’t be afraid to set one up now! Here are some details on HSAs and who qualifies to contribute to one.
Three Advantages of HSAs:
Believe it or not, 2021 is almost over. 2022 is less than 12 weeks away. Time is running out, but luckily there’s still enough to get your financial house in order. One of the main ways you can do this is through proper year-end tax planning. Here are two simple steps that will help you uncover opportunities to minimize your taxes.
America’s getting back to work after the disruption of the pandemic and today’s job market is HOT! Around our office we have lots of clients changing jobs, so we’re spending our days helping them decide what to do with their retirement savings.
Have you accepted a new job and are wondering what to do with your 401(k)? Maybe you’ve worked at the same company for a long time and have built up the bulk of your retirement savings into this plan. No idea what to do? Whether it’s your first time or fifth time deciding what to do with your 401(k), it can feel overwhelming. But don’t worry--I’m here to help!
When you leave an employer you typically have a short list of options, including the following.
As a new parent, I want to give my son the world. Just the other day, my husband and I had a passing conversation about potentially saving to help Jax buy his first home. He's 3 months old, so the math is simple. If we save a few hundred dollars a month for the next 30 years, he will have a pretty nice nest egg before we know it. In working to support your own child’s future, keep non-traditional savings options in mind to go beyond college funding and other basics.
As a financial planner, I know that most parents jump to college funding when they think of saving for their children. That's wonderful, but what if college isn't the path for your child?
“Often when you think you’re at the end of something, you’re at the beginning of something else.”
– Fred Rogers
Undoubtedly, retirement is a major life event! But now, some people have more than one ‘retirement’, effectively taking a break from work, then feeling their way into a new career. And many of our clients are taking sabbaticals, designated time off work. All of these take planning and a considerable financial cushion. A healthy dose of over planning will help you breathe easy when you are starting a new chapter of your life.
Of all the events in life, a new baby is one of the most joyous. But beneath the excitement of a new baby is the realization that carrying, delivering, and raising a child is expensive. So it’s important to be financially prepared. As a first-time mom, I know these were all things I started thinking about when we knew our little boy was on the way.
To make sure you’re ready for the reality of the pre-and post-baby financial hits, we’ve put together a list of financial considerations and expenses that you can expect to encounter on your parenthood journey.
"Some people are worth melting for." - Olaf, Frozen
So you’re in love. That’s enough, right? Well, it’s definitely the best foundation for a successful marriage. But money issues can quickly tear apart the strongest of relationships. Data from TD Ameritrade in 2018 showed that 41% of divorced Gen-Xers reported money disagreements as the top reason for their divorce. If you find someone worth melting for, being upfront and deliberate about financial decisions may literally save your marriage.
“If there’s one thing that’s certain in business, it’s uncertainty.” -Stephen Covey
With all the uncertainty in life, it pays to plan ahead in a manner that will allow you to move forward with a goal. We do this often with our clients and find that no one’s ever upset if they’re over prepared financially. It’s definitely better than the alternative.
This post is the second in a series about preparing financially for five BIG life events. You can find post #1 on buying a home here.
Job Transition
The days of retiring after decades at the same company have all but vanished. The average number of jobs in a person’s lifetime is 12, according to a 2019 U.S. Bureau of Labor Statistics survey.
“The only thing certain in life is uncertainty” -Derek Hough
With all the uncertainty in life, it can sometimes feel as though you can’t always plan ahead, but that’s rarely the case. In fact, with your finances you can actually plan ahead in a manner that will allow you to move forward with a goal should you want to in the future. We do this all the time with our clients and find that no one’s ever upset if they’re over prepared financially. It’s definitely better than the alternative.
This post is the first in a series about preparing financially for five BIG life events.
Sign up with your email address to receive news and updates.
We respect your privacy.
