Build Your Wealth: Personal Finance & Investing Insights

Current events Interest rates

Stocks Down, Yields Up: Looming Rate Hikes Bring Market Volatility

The Federal Reserve plans to raise interest rates more quickly than the market expected a couple of months ago. This is sending shock waves into equity markets as assets are repriced. Here are some drivers of recent market volatility and summary of what interest rates mean for the economic outlook.…

Kristin McKennaJanuary 23, 2022

Forbes Retirement Planning Sudden Wealth

Is 10 Million Enough to Retire?

Can you retire on 10 million dollars? For many Americans, this hefty sum would far exceed retirement needs and may even lead to generational wealth. However, individuals with high incomes often require a larger portfolio to maintain their lifestyle in retirement. Or if you're expecting sudden wealth from stock options…

Kristin McKennaJanuary 17, 2022

Business owners Stock options Sudden Wealth Tax planning Updated for 2022

Qualified Small Business Stock Gain Exclusion (Section 1202)

If you invested in a startup or small business (founders, employee exercise of stock options, business owner), you need to know about qualified small business stock. If eligible, you may be able to exclude up to 100% of the gain from federal taxes when you sell your shares. Qualified small…

Kristin McKennaJanuary 5, 2022

Stock options Tax planning Updated for 2022

When to Exercise Stock Options

When should you exercise stock options? With stock options, employees have the right (not obligation) to buy the shares (called exercising). Vesting is often the earliest employees can exercise, though early exercises are possible. If you stay with the company, you'll likely have 10 years from grant to buy the…

Kristin McKennaDecember 21, 2021

401(k) Plans Forbes Retirement Planning Tax planning Updated for 2021

When to Use Pre-Tax vs Roth 401(k) Contributions

Should you make after-tax Roth or pre-tax contributions to your 401(k)? Roth accounts can be powerful wealth-building tools. But paying tax early doesn't always make sense, especially for taxpayers with significant income. Here's when to consider pre-tax vs Roth 401(k) contributions. Quick recap on pre-tax vs Roth 401(k)s Both pre-tax…

Kristin McKennaDecember 15, 2021

Diversification Forbes Investing Managing Risk Rebalancing

Here’s Why it Might be a Good Time to Rebalance Your Portfolio

Rebalancing your portfolio is an important part of managing your money. Rebalancing means buying and selling positions in your portfolio to get back to your original asset allocation. When one asset class significantly outperforms another, your portfolio drifts from its starting investment mix. This is important because unless you periodically rebalance,…

Kristin McKennaDecember 6, 2021

Business owners Current events Stock options Tax planning

Expecting a Windfall from Stock Options or Selling a Business? New Tax Proposals May Cost You.

Tax planning for a sudden liquidity event just got more complicated. If you're expecting a big windfall from selling a business or employee stock options after an IPO or acquisition, you may be following the Build Back Better tax proposals. As currently drafted, the bill introduces new taxes on high…

Kristin McKennaNovember 16, 2021

Diversification Forbes Investing

The S&P 500 Is Up 97% Since 2019. What’s The Market Outlook In 2022 And Beyond?

Since 2019, the total return on the S&P 500 is nearly 97% (almost 27% on an average annualized basis).¹ This outperformance is leaving many investors nervous, waiting for the other shoe to drop. Yes, current market conditions certainly imply lower returns for the stock market in the years ahead. But…

Kristin McKennaNovember 15, 2021

Forbes Tax planning Updated for 2021

Worried About Taxes Going Up? 9 Ways To Reduce Tax

While there likely isn't a magic bullet to wipe out your tax bill, there are ways to layer tax-efficiency into your plan. If you're concerned about the possibility of tax rates going up or just looking to reduce your taxable income in 2021, consider these tax planning techniques. (more…)

Kristin McKennaNovember 8, 2021

Tax planning Updated for 2022

2022 IRS Contribution Limits

The IRS has released the 2022 contribution limits for retirement plans and other cost-of-living adjustments. (more…)

Kristin McKennaNovember 5, 2021

Wealth Management Insights