Brian Sheahen
House Ways and Means Proposed Tax Reform

On Monday September 13, the House Ways and Means introduced proposed tax changes for debate this week in an initial bill. The tax changes would be significant for many taxpayers and is intended to finance a broader $3.5 Trillion domestic investment plan. The changes proposed in the House bill will almost certainly evolve and deviate to a degree from how they are originally drafted, if it even ever becomes law. At the moment, these are purely provisions as part of the House Ways and Means initial bill proposal and should not be relied on as specific tax law or guidance.

House Ways and Means Proposed Tax Reform
Financial Planning, Executive Compensation, Equity Compensation Plans, Investments, Personal Finance, Trust & Estate, Wealth Transfer
Brian Sheahen
What Should I Do With My Concentrated Stock ...

Many of our clients first come to us with concentrated stock positions that they have obtained either through their employment, equity compensation, sale of a business, a well-timed trade, from family, or through some other means. They all share a common theme of idiosyncratic (non-systematic) risk which is inherent in owning a concentrated position. The specific risks however, and potential rewards, can be unique to each situation. They also all have unique wealth and tax considerations that need to be independently addressed. The facts of each unique situation, along with the stock owner’s financial goals and profile will guide the appropriate course of action in response to the common question of “What next?”.

What Should I Do With My Concentrated Stock Position?
Trust & Estate, Wealth Transfer
Brian Sheahen
GRATitude

The Grantor Retained Annuity Trust (GRAT) is a classic wealth transfer planning tool, but in order to properly implement this technique the grantor must feel compelled to make the transfer.  In families with means that may look to implement this technique it can be helpful to begin having conversations about the family wealth well in advance of actually implementing such a strategy.  Appropriately involving family can help create a sense of awareness, responsibility and eventually gratitude for the wealth that could be coming their way. 

GRATitude
Tax, Investments
Brian Sheahen
Amid Market Volatility - Beware of Wash Sales

Volatility is the price investors must pay in the search for higher future returns in capital markets. To many savvy investors with taxable investment accounts, the declines we saw in February and March (and quite possibly going forward still for some time) may have actually presented opportunities. One such opportunity has been to capture valuable tax losses from their investments. However, these same investors need to be especially careful to navigate the wash sale rules of the Internal Revenue Code (IRC) Section 1091, or their tax loss strategy may have all been for nothing.

Amid Market Volatility - Beware of Wash Sales
Behavioral Finance, Investments, Risk Management
Brian Sheahen
Diversification - Winning While Losing

COVID-19 and the resulting global pandemic has tested our global community, economy and markets. Investors with a diversified portfolio may have faced the following emotions of “I lost money” as the market first fell, followed by “I didn’t make as much” as the market has recently recovered (but for how long?). Yet, over a 20-year period, a diversified portfolio has still provided a higher total return, while assuming much less risk than the S&P 500. In the end, diversification wins, even when it feels like losing.

Diversification - Winning While Losing

Financial Planning

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Two-Step Roth IRA Conversions & Considerations

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Two-Step Roth IRA Conversions & Considerations

High-income taxpayers face restrictions on their ability to contribute to a Roth IRA.  Through proper planning, however, Traditional IRA assets may be efficiently converted into Roth IRA assets at no tax-cost. If managed appropriately, a taxpayer can effectively circumvent the income limitations by engaging in a two-step contribution and conversion process (Two-Step Roth IRA), also commonly referred to as a “Backdoor” Roth contribution. Methodically engaging in this strategy may generate significant tax savings over time.

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Wealth Strategies during a Down Market

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Wealth Strategies during a Down Market

Even though volatility has returned over the last year, markets have weathered the storm alright. Nonetheless, a more sustained downturn in the markets may occur at any moment. These declines combined with media headlines stating how the end is nigh can understandably cause the common investor to feel much angst and a sense of helplessness.  However, the prudent investor with the proper guidance and plan could potentially use a poor market to their advantage by taking an opportunistic approach and considering certain planning strategies.

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What to look for in an Advisor & Why it matters

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What to look for in an Advisor & Why it matters

How do you find a REAL advisor? By knowing the right questions to ask and attributes to look for based on your needs. It can be overwhelming for consumers that do not no where to look or who they can trust with such an important decision. However, REAL advisors do exist and want to help. if you find the right person that can give you true advice and assistance that you need, it will often pay for itself many times over, over many years and change your life for the better. Our article helps you address some basic considerations to find someone that may be right for you.

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Employee Stock Purchase Plans (ESPP): Are You Making The Most of Yours?

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Employee Stock Purchase Plans (ESPP): Are You Making The Most of Yours?

Employees at both startups and well-established public companies alike may receive opportunities to contribute towards, or engage in, company stock plans. These plans are generally referred to as equity compensation plans. Each plan has it’s own pros and cons, but perhaps none are as underutilized yet offer such certain benefits as the Employee Stock Purchase Plan (ESPP). We go through the basics of an ESPP, some of the tax considerations, some thoughts for how to get the most out of this type of equity compensation plan, and other things to keep in mind with this unique plan.