Financial Tips

Navigating Non-Cash Benefits: A Guide for Pharmaceutical Executives

Navigating Non-Cash Benefits: A Guide for Pharmaceutical Executives

In today's discussion, we embark on the second step of enhancing financial health for pharmaceutical executives: the strategic utilization of non-cash benefits. Led by AnnaMarie Mock, a fee-only certified financial adviser at Highland Financial Advisors, this video aims to shed light on the often underestimated yet impactful facet of compensation packages.

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.

Maximizing Financial Health: A Guide for Dental Practice Owners

Maximizing Financial Health: A Guide for Dental Practice Owners

In this comprehensive guide, Ed Leach from Highland Financial Advisors extends his expertise to dental practice owners, outlining essential strategies for optimizing financial health. As a seasoned partner and wealth adviser, Ed emphasizes the significance of understanding and evaluating various financial aspects crucial for professional practices and personal wealth management. From analyzing financial reports to assessing net worth and diversifying assets, this guide offers invaluable insights tailored to the unique needs of dental entrepreneurs.

The Surprising Benefits of HSA Accounts for Divorcees

The Surprising Benefits of HSA Accounts for Divorcees

When going through a divorce, there are a million things to think about and plan for - division of assets, child custody arrangements, updating beneficiaries, and more. One aspect often overlooked is what happens to your health insurance and how to manage medical expenses best going forward. This is especially important for divorcees as they will now be managing their own healthcare costs independently rather than on a family plan. 

Making the Most of Your Retirement: Prioritizing Healthspan Over Lifespan

Making the Most of Your Retirement: Prioritizing Healthspan Over Lifespan

As Wealth Advisors with extensive experience guiding high net-worth families through the intricacies of planning for their transition to retirement, we have witnessed firsthand the evolving dynamics of what it means to retire well. Traditionally, the focus has been on ensuring financial security through wealth accumulation, aiming to cover the expanses of one's lifespan. The traditional definition of "Retirement Planning".

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.

Demystifying Backdoor Roth IRA Contributions: Answering the Top FAQs

Demystifying Backdoor Roth IRA Contributions: Answering the Top FAQs

As the April 15th tax filing deadline rapidly approaches, so does the 2023 Roth IRA contribution deadline. Roth IRAs are among the most efficient yet under-utilized retirement saving strategies. By saving after-tax money in a retirement account, individuals can enjoy tax-free investment growth and distributions in retirement.

When Can Investing Resemble Gambling?

When Can Investing Resemble Gambling?

I'm reading Daniel Kahneman's book Thinking, Fast and Slow. Kahneman is the 2002 Nobel Prize-winning psychologist and economist known for his work in behavioral economics. One section of the book discusses how investing can resemble gambling when individuals overestimate their ability to predict market movements, a phenomenon deeply connected to Daniel Kahneman's concepts of the "Illusion of Skill" and "Illusion of Validity." These cognitive biases describe the human tendency to overvalue our ability to make accurate predictions or decisions in situations where chance plays a significant role or the information is unreliable.

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.  

Why Investing is so Difficult

Why Investing is so Difficult

Buy low, sell high. This four-word phrase is the only thing you need to know to invest successfully. Why, then, is something so simple as buying low and selling high such a difficult skill to be successful at? The answer is that we all have emotions that drive our investment decisions.

The Importance of Cash Flow in Financial Planning

The Importance of Cash Flow in Financial Planning

In this video, Joe Goldy from Highland Financial Advisors discusses the significance of cash flow as a critical tool in financial planning, emphasizing its universal application for all clients, particularly divorcees. He distinguishes cash flow from a budget and outlines its three main benefits: providing peace of mind by showing clear income and expenses, being a reusable tool for various financial scenarios, and aiding divorcees in accurately filling out the Case Information Statement.

Understanding the Pros and Cons of Rental Property Ownership

Understanding the Pros and Cons of Rental Property Ownership

A common question I often hear from clients considering purchasing a rental property or who may have just inherited one through the passing of a family member or divorce is whether they should manage the property themselves or hire a professional management company.

Five Key Reasons to Choose a Roth 401(k) Over a Pre-tax 401(k)

Five Key Reasons to Choose a Roth 401(k) Over a Pre-tax 401(k)

The decision between a Roth 401(k) and a Pre-tax 401(k) can significantly impact your financial future. While both accounts offer unique advantages, certain scenarios may make a Roth 401(k) a more attractive option. This article delves into the top five reasons you might consider a Roth 401(k) over its Pre-tax counterpart.

Mastering Financial Health: Step Two - Understanding and Managing Cash Compensation

Mastering Financial Health: Step Two - Understanding and Managing Cash Compensation

In this video, AnnaMarie Mock, a Certified Financial Planner™, focuses on the second step in her series for pharmaceutical executives, emphasizing the importance of cash compensation in financial planning. She compares compensation to a banana split, with cash compensation as the essential component. Mock advises managing lifestyle expenses based on a stable salary rather than variable bonuses and highlights the need for a spending plan.

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.

Year-End Tax Planning Strategies

Year-End Tax Planning Strategies

As the year draws to a close, it's the perfect time to look at your finances and implement year-end tax planning strategies. With careful planning, you can optimize your tax situation, reduce your tax liability, and save more money for the future. In this article, we'll explore various tax planning strategies that individuals and families can consider to maximize their financial situation before the year-end.

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.