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Why the 4% Rule Is Only a Starting Point for Mid-Career Tech Professionals Thumbnail

Why the 4% Rule Is Only a Starting Point for Mid-Career Tech Professionals

Planning for retirement for mid-career tech professionals has never been more important and yet so challenging. Given the problematic inflationary conditions of the past two years, the risk that worries most continues to be outliving their savings. This is because, when it comes to markets and the economy, we can't control the timing of events - including day-to-day market swings and whether investors begin retirement in a bull or bear market. What we can control, however, is our own behavior by staying disciplined. While there are never any guarantees, history shows that having a sound financial plan that can adjust to changing conditions, accompanied by proper financial guidance, is the best way to minimize retirement risks.

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Don't Vest And Forget: Understanding RSU's Asymmetric Tax Risk Thumbnail

Don't Vest And Forget: Understanding RSU's Asymmetric Tax Risk

Restricted Stock Units (RSUs) are a popular form of equity compensation many companies use to incentivize and retain employees. RSUs are often granted as part of an employee's compensation package and represent a promise to deliver company stock at a future date, usually after a vesting period. While RSUs can provide a valuable opportunity for employees to participate in their company's growth, they also come with unique tax considerations, including asymmetric tax risk.

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Don't Vest And Forget: Incentive Stock Options and Alternative Minimum Tax Thumbnail

Don't Vest And Forget: Incentive Stock Options and Alternative Minimum Tax

If you're a tech employee who has been granted stock options as part of your compensation package, it's essential to understand the tax implications associated with these options. In particular, you may be subject to the alternative minimum tax (AMT) if you exercise incentive stock options (ISOs). This piece will explore the basics of incentive stock options and the alternative minimum tax.

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🚩 How to Best Understand Systemic Risk in the Financial System Thumbnail

🚩 How to Best Understand Systemic Risk in the Financial System

With several large bank failures in recent months, we are all reminded of the 2008 Great Financial Crisis and Recession, when millions lost their jobs, homes, and ways of life. While many factors contributed to this economic disaster, one term can cover nearly all of them: systemic risk. The financial system plays a crucial role in the global economy, facilitating the flow of funds, managing risk, and supporting economic growth. However, it is also vulnerable to systemic risk, which can have far-reaching consequences for the stability of financial markets and the broader economy. Let's look at what systemic risk is and how it can impact your behavior as an investor.

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Don't Vest And Forget - Equity Compensation 101 Thumbnail

Don't Vest And Forget - Equity Compensation 101

Over the last several decades, employee equity has become a much larger part of employee compensation. Although not limited to tech companies, it has become especially popular among private and public tech companies to align employee incentives with that the company's performance of the company. The rationale is that if employees are compensated in company equity, their equity value will improve over time as employees are incentivized to maximize their company equity through greater work performance. Through equity compensation, employees have more "skin in the game," so to speak, concerning the company's performance.

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All That Tech-Employees Need To Know About Their RSU Equity Grants Thumbnail

All That Tech-Employees Need To Know About Their RSU Equity Grants

When it comes to employee compensation, many tech companies provide equity and stock-based benefits to their employees. The intention behind this kind of stock-based compensation is to align the performance interests of the employee with the employer. One common form of equity-based compensation from publically traded and late-stage private, VC-backed tech companies are restricted stock units (RSUs).

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