Financial Planning, Financial Tips
Edward Leach
The Dependent Care FSA – An Overlooked Benefit ...

In talking with clients about the benefits their employer provides during the open enrollment season, one often overlooked benefit if clients have dependents is the Dependent Care Flexible Spending Account (FSA).

The Dependent Care FSA – An Overlooked Benefit During Open Enrollment Season
Financial Planning, Financial Tips, Healthcare, Investments, Life Planning, Savings
Edward Leach
3 Reasons Every High Net-Worth Family Should ...

Health Savings Accounts (HSAs) are not only a savvy investment option but also offer numerous benefits, especially for high-net-worth families. An HSA is a tax-advantaged savings account designed for individuals with high-deductible health plans (HDHPs) to help cover out-of-pocket medical expenses. While the utility of HSAs is universal, they hold advantages for high-net-worth families and have steadily grown in popularity since their inception.

3 Reasons Every High Net-Worth Family Should Fund a Health Savings Account
Financial Planning, Financial Tips, Investments, Savings
Joey Casolaro, CFP®
How Money Can Buy Happiness (Part 2)

Earlier this year, I explained two principles you can follow to obtain the most happiness from your spending https://www.highlandplanning.com/learning-center-1/how-money-can-buy-happiness-part-1. In today’s article, I will cover three more concepts that can help bring more joy in your life with your spending. Below are the five principles outlined in the book Happy Money.

How Money Can Buy Happiness (Part 2)
Financial Planning
AnnaMarie Mock, CFP®
Remember to Review and Update Your Estate Plan

In a previous article titled “The Estate Planning Essentials”, I identified the documents needed for a comprehensive estate plan. Although this can be a morbid topic most want to avoid thinking about, reviewing the documents not only ensures your financial legacy is passed in accordance with your wishes as smoothly as possible but guides your agent to ensure your medical and financial wishes are addressed. So, how often should you review your estate planning documents?

Remember to Review and Update Your Estate Plan

Stocks

, , , , ,

The Myth of CASH

, , , , ,
The Myth of CASH

In personal finance, the attraction of cash equivalents for long-term goals has persisted as a seemingly safe and stable investment strategy. Cash equivalents, including savings accounts, money market funds, certificates of deposit (CDs), and Treasury bills, are often viewed as low-risk options that offer liquidity and "preservation of capital." However, the belief that investing primarily in cash equivalents can secure one's financial future in the long term is a myth that should be challenged.

, , ,

Donating Appreciated Stock and Equity Compensation to Reduce Taxes

, , ,
Donating Appreciated Stock and Equity Compensation to Reduce Taxes

As we’re in the throes of tax season, you may be surprised by the potential tax liability you face. In the realm of tax planning, savvy investors are always on the lookout for strategies to minimize their tax burden while maximizing their charitable contributions. One such strategy gaining traction is donating appreciated stock, funds, and equity compensation. By strategically leveraging these assets for charitable giving, individuals can support causes they care about and reduce their tax liability meaningfully.

, , , ,

A Tax Tale: The Story of Reporting Income Taxes From Stock Compensation

, , , ,
A Tax Tale: The Story of Reporting Income Taxes From Stock Compensation

Sarah, a savvy pharmaceutical executive, has accumulated Non-Qualified Stock Options (NQSOs) and Restricted Stock Units (RSUs) as part of her compensation package. Sarah had always been meticulous with her finances and records of her stock option grants, exercise dates, and the fair market values at the time of exercise. As her stock compensation vested over the years, she knew proper tax reporting was crucial to avoid any IRS headaches.  

, , , ,

When Should I Exercise & Sell My Non-Qualified Stock Options? – Using Merck's (MRK) Stock History

, , , ,
When Should I Exercise & Sell My Non-Qualified Stock Options? – Using Merck's (MRK) Stock History

In contrast to the first half of 2023, the second half has had volatile, lackluster returns for some of the stock market and pharmaceutical stocks. Market fluctuations can significantly impact wealth creation, especially when navigating stock compensation.

, , , ,

High Rates Don't Put the Brakes on Stocks

, , , ,
High Rates Don't Put the Brakes on Stocks

Some investors have asked if stocks make sense in a world where short-term US Treasuries yield north of 5.5%. 1 While a notable relationship exists between high short-term interest rates and stock market returns, it's important to understand that correlation does not imply causation. Here's a breakdown of the dynamics:

, , , , , ,

Why Stock Valuations Are Not Predictive of Future Portfolio Returns

, , , , , ,
Why Stock Valuations Are Not Predictive of Future Portfolio Returns

Financial markets are complex and unpredictable. Valuation metrics, such as price-to-earnings (P/E) ratios, enterprise value-to-EBITDA, and the price-to-book (P/B) ratio, have traditionally been seen as indicators of a stock's intrinsic worth and, by some, predictors of future returns. However, the belief that valuations can reliably forecast future markets deserves a deeper investigation into why they may not serve as a crystal ball for investors. 

, , , ,

Three Questions Answered Regarding your Company's Restricted Stock Units (RSUs)

, , , ,
Three Questions Answered Regarding your Company's Restricted Stock Units (RSUs)

A Restricted Stock Unit (RSU) is a form of compensation that some companies use to reward their employees. RSUs represent a promise to give an employee a certain number of shares of company stock at a future date, typically once certain conditions are met, such as a specified vesting period or performance goals. RSUs are a common form of equity-based compensation used in publicly traded and private companies.

, , ,

A Look Back at The First Half of 2023

, , ,
A Look Back at The First Half of 2023

The S&P 500 index rose 16.9% on a total return basis over the first half of of 2023. If you factor in July, the index is up over 20%. After a challenging year for investors in 2022, when the index lost almost 20%, it’s hard to complain about this year’s progress. With the S&P nearly doubling the long-term average annual return in 2023, it’s easy to say the market is healthy and all companies are doing well, right?

, , , , ,

Investment Diversification Strategy: Just How Diversified Are You?

, , , , ,
Investment Diversification Strategy: Just How Diversified Are You?

One of the most fundamental principles of investing is diversification. Diversification does not overload your portfolio into any investment but instead spreads the risk across different areas. Ideally, your portfolio is invested in several diverse types of investments, but as you'll see below, there is more to diversification than buying stocks, bonds, or funds.

, , , ,

How to Evaluate a Job Offer - Salary, Benefits, Stock Options, and More

, , , ,
How to Evaluate a Job Offer - Salary, Benefits, Stock Options, and More

Deciding to accept, reject, or negotiate a job offer is very important and requires much forethought to assess all the components in the offer letter. Before diving headfirst, ensure your potential new employer matches not only your compensation expectations but also your values.   

, ,

The World Wide Web 30 Years Later

, ,
The World Wide Web 30 Years Later

April 30th marked the 30th anniversary of the World Wide Web being introduced to the public for the first time. Tim Berners-Lee was a 37-year-old researcher at CERN, a physics lab in Switzerland when he created the first website and launched it on the Web as we know it today. 1.8 billion websites later, Lee's invention has revolutionized the way human beings interact and learn on a global scale.

, , , ,

Investing Significant Amount of Cash: Lump-Sum Investing vs Dollar-Cost Averaging

, , , ,
Investing Significant Amount of Cash: Lump-Sum Investing vs Dollar-Cost Averaging

Investing can be a daunting task, especially when you have a significant amount of cash to invest. One of the most crucial decisions is when to invest. Should you commit all at once or spread out your investments over time? This article will discuss the two primary investment strategies: lump-sum investing and dollar-cost averaging.

, , , ,

Don’t Look at 2023 in the Rearview Mirror

, , , ,
Don’t Look at 2023 in the Rearview Mirror

As we head into the new year, when it comes to financial markets, some people may expect more of the same as in 2022—essentially overweighting recent events compared to historical events. This is a behavioral issue known as recency bias and may cause people to make bad decisions with their money.

, , ,

A Tulip by Any Other Name: The Collapse of FTX and Crypto Markets.

, , ,
A Tulip by Any Other Name: The Collapse of FTX and Crypto Markets.

The first investment speculative bubble was the tulip bubble of the mid-1600s. The details are debatable, but from 1634 to 1637, a speculative bubble developed on future contracts for new tulip varieties in Holland. Prices snowballed, reaching ten times the annual salary of a typical tradesman of the day. By February 1637, the market had collapsed. The tulip mania of the 1600s resulted from a mass hysteria for new varieties of tulips developed in Holland after the flower had been introduced to Europe only a few decades before.

, , ,

Social Media & Financial News Detox

, , ,
Social Media & Financial News Detox

Would you believe it if someone told you that you could improve sleep, reduce stress and anxiety, and boost your mental well-being by reducing social media and news intake? About four months ago, I decided to conduct a self-experiment where I reduced the time spent on social media apps and watching news channels.

, , ,

Follow a Disciplined Approach to Investing

, , ,
Follow a Disciplined Approach to Investing

“Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you.” -The Psychology of Money, Morgan House.

I was having dinner with friends in December of 2018, and at the time, the markets were in the middle of a 20% drawdown. While we were out, one of my friends met an acquaintance of his who happened to be a Sales Representative for one of the large Wall Street brokers. I was happy to listen to his perspectives on the markets.

, , ,

Using The Scientific Method for Financial Planning – Equity Compensation

, , ,
Using The Scientific Method for Financial Planning – Equity Compensation

Leonardo DaVinci wisely said, "Study the science of art. Study the art of science. Realize that everything connects to everything else." Financial planning integrates art and science through a dynamic process. The art is subjective and experienced while exploring goals and aspirations and making decisions. The science is objective and visible in the tools to develop projections analysis.

, , ,

The Investment Story of 2022

, , ,
The Investment Story of 2022

The first half of 2022 has been a disappointing year for every investor. At the close of Q2 2022, a 60/40 hypothetical portfolio comprised of the S&P 500 Index and Barclays US Aggregate Bond Index was down over 12%. What's been the driving force behind these investment returns, and what can we expect moving forward?

, , ,

Equity Compensation and Delayed Gratification: Do you have a Plan for When Your Options Vest?

, , ,
Equity Compensation and Delayed Gratification: Do you have a Plan for When Your Options Vest?

Walter Mischel, psychologist and professor at Stanford University conducted an experiment in the 1960s about delayed gratification and published his findings in 1972. In the study, a researcher explained to a child they could either have one marshmallow immediately or two marshmallows if they waited 15 minutes.

, , , ,

True Confessions of a Financial Advisor

, , , ,
True Confessions of a Financial Advisor

As of Friday, the 29th of July, except for the NASDAQ market, the US equity markets recovered somewhat from the bear market correction. A bear market is a loss of 20% from the previous high. In the first six months of 2022, the equity market had lost over 80% of what it gained in 2021 and entered a bear market correction.

Subscribe To Our Newsletter