Tag: Investment Strategy

RSAs vs. RSUs: Understanding Your Equity Options (Episode 16)

RSAs vs. RSUs: Understanding Your Equity Options (Episode 16)

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Summary: In this episode of Wealth on the Move, hosts Will Hoffman and Brynn Tarbuck delve into the complexities of achieving financial independence through equity compensation, specifically focusing on Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs). They discuss the differences between these two forms of equity compensation, their tax implications, and strategies for maximizing their benefits while avoiding common pitfalls. The conversation emphasizes the importance of planning and understanding the financial landscape to ensure a successful path to early retirement.

Takeaways:

  • Understanding the FIRE movement is crucial for financial independence.
  • Equity compensation can be confusing but is essential for early retirement.
  • RSAs are typically issued by startups, while RSUs are from established companies.
  • Tax implications differ significantly between RSAs and RSUs.
  • The 83B election can provide substantial tax savings for RSAs.
  • Avoid overexposure to company stock to mitigate financial risk.
  • Missing exercise deadlines can lead to forfeiting valuable stock options.
  • Lifelong tax planning is vital for managing equity compensation.
  • Diversifying proceeds from equity compensation is essential for retirement planning.
  • Planning ahead can prevent unexpected tax bills during retirement.

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Unlocking the Secrets of the FIRE Movement (Episode 14)

Unlocking the Secrets of the FIRE Movement (Episode 14)

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Summary: In this episode, Will Hoffman discusses the FIRE (Financial Independence, Retire Early) movement, exploring its significance and the various strategies individuals can adopt to achieve financial independence. He breaks down the essential pillars of saving, investing, and lifestyle choices, and delves into different types of FIRE, including Lean, Fat, and Barista fire. The conversation also touches on equity compensation, the rise of side hustles, and the emotional aspects of achieving financial independence. Will emphasizes the importance of finding fulfillment after reaching financial independence and invites listeners to engage with future topics.

Resources:

Takeaways:

  • The FIRE movement encourages individuals to seek financial independence and retire early.
  • Saving aggressively is crucial for achieving financial independence.
  • Investing smartly is essential for building wealth.
  • Lifestyle choices should align with long-term financial goals.
  • Lean fire focuses on a minimalist lifestyle, while fat fire allows for a more lavish lifestyle.
  • Barista fire involves working part-time to supplement income after retirement.
  • Equity compensation can be a significant factor in achieving financial independence.
  • Side hustles can create additional income streams and accelerate financial goals.
  • Emotional awareness is important when making investment decisions.
  • Finding fulfillment after achieving financial independence is essential for long-term happiness.

Connect with Will Hoffman: 

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Financial Mistakes for Gen X to Avoid (Ep. 21)

Financial Mistakes for Gen X to Avoid (Ep. 21)

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Join Will Hoffman, AIF as he details eight financial blunders that many Gen Xers encounter and provides valuable guidance on how to steer clear of them.

Listen as Will touches on: 

  • The importance of setting clear goals and aligning them with your financial plan
  • How to make investment decisions based on long-term goals rather than short-term market fluctuations
  • The significance of implementing a tax planning strategy beyond the current year to minimize future tax burdens
  • Insights into the importance of saving and investing outside of retirement accounts to pursue financial independence
  • And more

Resources:

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About Our Host: 

Will Hoffman is a financial advisor and the Founder of Hoffman Wealth Management, a firm dedicated to helping professionals create wealth plans that revolve around their financial goals. Will has 20 years of experience in the financial services industry and is passionate about becoming his client’s most trusted financial ally. 

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Hoffman Wealth Management are separate entities from LPL Financial. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed.  No offers may be made or accepted from any resident of any other state.

 

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