The Architecture Of Wealth - Well-Balanced Wealth Building: Recent Episodes
Mark Struthers CFA, CFP®
Host Mark Struthers CFA CFP® will give you tips and strategies to build wealth on your terms. Mark is a father; he knows how important balance is in our lives. Mark’s focus for the podcast is to give you the tools for well-balanced wealth building, realizing we all have goals beyond making money. Wealth has a different meaning for everyone.
Shownotes:
Takeaways
- More companies are giving employees a choice between NSOs (Non-Qualified Stock Options) and RSUs (Restricted Stock Units).
- There is no right or wrong choice. It is about understanding the pros and cons of each and how they fit with your goals, risk tolerance, and personal financial profile.
- RSUs are easier to understand, manage, and most often considered less risky, with less downside.
- NSOs are more complex, harder to manage, and riskier, with more downside.
- Generally, you will receive more NSOs than RSUs.
- It is often helpful to breakout your considerations into tax and investment issues.
Rest of blog post:
https://www.sonawealthadvisors.com/nsos-non-qualified-stock-options-vs-rsus-restricted-stock-units/
Listen, rate, and subscribe!
Mark Struthers
www.SonaWealthAdvisors.com
Chanhassen, MN 55317
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
The Architecture of Wealth Shownotes:
Could retiring in the 2020s be as bad as retiring in the late 60s? Now is a scary time for retirees.
Mark reviews a Barron's article about sequence-of-return risk and the luck (or bad luck) of retiring before a bad stretch of stock and/or bond market returns.
https://www.barrons.com/articles/retirement-recession-bear-market-51657228473?mod=past_editions
Mark expands on how the 4% rule relates to some of the article's observations. While equities are critical for the inflation adjustment to work on withdrawals, putting some thought into your emergency fund and the increased use of bonds can help weather a bad-decade storm. Some other solutions Mark touches on:
- Have more assets at retirement
- Be flexible with spending – change lifestyle if a bad stretch happens
- Larger emergency fund - comfort cash
- Dividends and interest going to cash
- Overweight bonds early in retirement
- A bond tent
- Increasing from 40%-70% from age 55-56
- Decreasing from 70%-40% from age 65-80
- A bond tent
- Use of Treasury Inflation-Protected Securities, or TIPs
Listen, rate, and subscribe!
Mark Struthers www.SonaWealthAdvisors.com Chanhassen, MN 55317
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
This week Mark goes through what it means when equity compensation options are underwater. Underwater Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs) have no intrinsic value. Because the strike price is more than the current market value, they show no value on your statement. Mark provides an example of an underwater option and what you should do about it. There is often little reason to pay more for a stock than it is worth. There is no tax deduction by exercising an underwater option. Many people mistakenly think that a paper “loss” on the exercise will offset the ordinary income tax on options that have value.
The only time exercising an underwater option may be appropriate is when it’s a privately held company. If the stock is not publicly traded, exercising the underwater, out-of-the-money option and paying more than it is worth may be the only way to access the stock, but it is a very BIG risk.
Lowering expectations, and being realistic about the value of your equity compensation, will help you make better financial decisions and more effectively build well-balanced wealth.
Each equity comp type has its own tax and risk profile. Make sure to consult a financial professional before acting.
Listen, rate, and subscribe!
Mark Struthers www.SonaWealthAdvisors.com Chanhassen, MN 55317
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
The Architecture of Wealth Episode Title:
6 Equity Comp Tips For Dealing With Market Volatility
Embed podcast player
Episode Introduction
Market downturns and volatility affect equity compensation more than other types of investments. Non-qualified Stock Options (NSOs) and incentive stock options (ISOs) can be particularly hard hit. Mark gives you some tools and tips to deal with these uncertain times.
Equity Compensation Mentioned:
- Non-Qualified Stock Options (NSOs)
- Incentive Stock Options (ISOs)
- Employees Stock Purchase Plan (ESPP)
- Restricted Stock Units (RSUs)
- Stock Appreciation Rights (SARs)
Main Topics
- Change expectations – Stop expecting quick cash (2:55)
- Lower stock prices - lower taxes (5:00)
- Don’t plan to use funds for day-to-day expenses (6:02)
- Ignore! Ignore! Ignore! (7:14)
- Volatility is the new normal (9:04)
- Make a plan (9:55)
Additional Resources and Thoughts
Each equity comp type has its own tax and risk profile. Make sure to consult a financial professional before acting.
Listen, rate, and subscribe!
Mark Struthers www.SonaWealthAdvisors.com Chanhassen, MN 55317
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Podcast Show Notes – The Architecture of Wealth
Date: 6/5/2022
Name of podcast: The Architecture of Wealth
Episode Title: 4 Ways to Make the Most of a Market Downturn
By taking inventory of your risk tolerance, you can take advantage of this lower market. Here are four ways to make the most of a market downturn.
For information about Sona Wealth Advisors: www.SonaWealthAdvisors.com
Summary:
In the wake of a bad week for the market, now is a good time to evaluate your risk tolerance. And checking your risk tolerance via your financial plan and investment strategy can help you find ways to leverage a lower market. You should be doing this on an ongoing basis. Then, these things will affect you less and less.
Here are four ways to take advantage of this market downturn:
- Frontloading: Contribute to your retirement account early in the year. Historically, the market doesn’t go substantially lower than 20% down in any given year – where it is currently – meaning now might be a good time to frontload. The con is the 401K match: most companies will require you contribute every month to get your full match.
Also, small business owners may not know their full income for the year and how much they can afford to frontload.
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Put Cashflow to Work: If your job is secure and your emergency fund is well stocked, now might be a good time to put your cash to work.
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Tax Loss Harvesting: Capital gains were a big deal in last year’s market. When the market is down, you can take advantage of losses. Keep the wash-sale rule in mind when doing this. Separately Managed Accounts (SMA) are popular because the technology has improved. They can harvest capital losses at the individual stock level.
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Roth Conversions: If you were going to convert, the tax burden may be lower now because valuations are lower. This also works if your income is low. Converting during a 20% pullback might be a good idea. Increasing your income from a Roth conversion may have unintended consequences. There are tax deductions that rely on income. You may lose loss credits and deductions by increasing your income through a ross conversion.
Anything with a Roth has a five-year rule, including each Roth conversion. Each conversion has its own five-year rule.
One strategy is to convert higher-risk, higher-growth potential assets from your traditional IRA with the idea that they will grow more inside your Roth. Lower-risk assets will be in your traditional IRA.
Timestamps:
0:00 Introduction
2:25 Self-Check with Risk Tolerance
3:26 First: frontloading
6:12 Second: put cashflow to work
7:57 Third: tax loss harvesting
9:07 Fourth: Roth Conversions
Mark Struthers www.SonaWealthAdvisors.com Chanhassen, MN 55317
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
We continue our discussion of the Roth and Traditional account types. Building wealth means balancing your goals with the characteristics of each. Mark gives some rules of thumb and things that investors and even advisors miss!
For information about Sona Wealth Advisors: www.SonaWealthAdvisors.com
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Mark reviews the basics of Roth and Traditional account types, laying the foundation for Part 2, where we compare the two and discuss how you decide which one is right for you.
For information about Sona Wealth Advisors: www.SonaWealthAdvisors.com
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Inflation. The stock market. Ukraine. The Timberwolves bounced from the 1st round of the playoffs. These are scary times. But spring is finally here in Minnesota, and Mark hopes to provide a little sunshine in this gloomy stock-market storm. The average market drawdown in any given year is 14%. So for 2022, we are average. So why do things seem so bad? For information about Sona Wealth Advisors: www.SonaWealthAdvisors.com
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
I-Bonds. Used to be boring. Now, not so much. As inflation has risen, so has their return. They are not for everyone, and be aware of liquidity issues and penalties, but they could be a great inflation hedge for many.
For information about Sona Wealth Advisors: www.SonaWealthAdvisors.com
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Investing during inflationary or stagflationary times is more than a little challenging. Join Mark as he gives some examples of investments that may perform better during inflation. Knowledge makes scary times less scary!
For information about Sona Wealth Advisors: www.SonaWealthAdvisors.com
The Architecture of Wealth Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
It's that time! It's FAFSA time. October 1st 2021 is the first day you can fill out FAFSA for need-based aid for the 2022-2023 school year. Be prepared! Don't make one of our top 10 mistakes.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
www.SonaWealthAdvisors.com
Join Mark and Dan Cepress, the father of many of our dad jokes, to discuss the college financial planning and admissions process. As a real-life father, Dan has been through the process twice now. He will share some tips he and his family have learned along the way to make sure your process goes as smoothly as it can for your family. And of course, he will share some dad jokes with us too!
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
www.SonaWealthAdvisors.com
Inflation is coming! Maybe. I-Bonds have been in the news lately. Their return has jumped! Join Mark as he expands on an interview he did with Kenadi Silcox from Money Magazine. They aren't your grandparent's Savings Bond -- check them out.
The Money Magazine article: https://money.com/savings-bonds-invest-inflation/?xid=moneyrss
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
www.SonaWealthAdvisors.com
Join Cozy Wittman from College Inside Track as she provides tips to help make the most of your college tour, including some Minnesota-specific advice. As Cozy points out, approaching the college search the same way today as we did twenty years ago is like going out to your car and "trying to crank to start it."
For questions on working with Cozy: https://collegeinsidetrack.com/
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
www.SonaWealthAdvisors.com
If you didn't know you could negotiate, you are not alone. Negotiating college award letters is not only possible but can save a family thousands. Shannon Vasconcelos from Bright Horizons will tell us how to do it and how to do it right!
For questions on working with Shannon:
https://getintocollege.com/Our-Experts/Finance-Experts/Shannon-Vasconcelos
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Retirement expert Denise Downey joins us to discuss different approaches to retirement. Times have changed over the last 20 years and maybe our approach to retirement should too. And as always, we will discuss how college planning fits into her alternative retirements.
For questions on working with Denise:
https://www.financialtrex.com/
For Sona's free eBook on saving for retirement and college:
https://mailchi.mp/fae9d3d6f91a/5-must-knows
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
We start off with new dad jokes to warm you up (windchills of -30 here in MN!). We then talk recent changes to FAFSA (need-based aid) passed with recent COVID legislation. Some good changes. But mostly bad, especially for families with multiple kids.
Article referenced in podcast - Mark talks college saving ratios:
https://www.msn.com/en-ph/money/other/how-much-money-to-set-aside-each-month-for-college/ar-BB1dvI8K
For more information on working with Mark:
www.SonaWealthAdvisors.com
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
COVID has made a challenging time, even more difficult. Current high school juniors and seniors face challenges most students don't face. Our guest, John Hupalo, is a great guide to help parents and students down this unexpected detour of their college funding journey.
John is the founder of Invite Education.com, which includes MyCollegeCorner.com. He is also author of Plan & Finance Your Family’s College Dreams, which is an Amazon Best Seller. John's Book On Amazon
For more information on working with Mark:
www.SonaWealthAdvisors.com
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
A Roth IRA can be a great part of a college funding strategy. Its flexibility can help you prepare for funding college and retirement. But many families make too much to contribute. To make matters worse, most families that make too much for a normal Roth contribution, make too much for need-based aid from FAFSA.
But there is hope! If done correctly, the Backdoor Roth can allow even the highest earner to get dollars into the Roth IRA.
Get your FREE Roth IRA toolkit:
https://mailchi.mp/62abef091ea6/backdoor-roth
For more information on working with Mark:
www.SonaWealthAdvisors.com
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
We all know that 529 Plans are one of the best ways for parents to save and invest for college. But one often overlooked account is the Roth IRA. Join Mark as he goes through the pros and cons of each account type and why the Roth should be looked at first for most families.
Ideally, both accounts should be used to help fund retirement and college.
Free eBook - 5 Must-Knows For Balancing College & Retirement:
https://mailchi.mp/fae9d3d6f91a/5-must-knows
The article that Mark references in the podcast:
https://www.nasdaq.com/articles/roth-iras-knock-out-529-plans-battle-education-funding-2016-06-23
For questions on working with Mark:
www.SonaWealthAdvisors.com
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
We all know that the 529 Plan is a great way to save for college, but did you know that Minnesota has an additional tax credit OR deduction for the year you contribute? Join Mark as he goes into more detail to see if this tax benefit is right for you.
Here are the two free resources mentioned in the Podcast.
Download Gift Card PDF & MN Tax Benefit Info
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Paul Curley from ISS Market Intelligence will talk about the benefits of 529 Plans in general, but also how they can be used with the new COVID normal. He will answer questions like, Can a 529 Plan pay a parent rent? Can it pay for internet access at home? Is PPE a qualified expense? What can a 529 Plan do for those with K-12 kids?
Free eBook - 5 Must-Knows For Balancing College & Retirement:
https://mailchi.mp/fae9d3d6f91a/5-must-knows
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
How much should a family save for college is a very personal decision. Join Mark as he provides some tips, rules of thumb, and things to think about as you decide the best path for you and your family. Mark's conversation will build upon an article from 2016: LATimes - College Magic Number
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Balancing paying for college and retirement is challenging. 529 Savings Plans are one of the best options to help parents invest and save for college. They not only offer substantial tax benefits, but they also are a great way to involve the entire family in the child’s education! In Part #1, Mark will explore 529 Savings Plans and how they might fit into your education funding strategy. For Part #2, we will look at 529 Prepaid Tuition Plans.
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Balancing paying for college and retirement is challenging. 529 Savings Plans are one of the best options to help parents invest and save for college. They not only offer substantial tax benefits, but they also are a great way to involve the entire family in the child’s education! In Part #1, Mark will explore 529 Savings Plans and how they might fit into your education funding strategy. For Part #2, we will look at 529 Prepaid Tuition Plans.
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
Our guest Ray Giese CFP® MS will discuss the value of career coaching. “Most people spend more time shopping for a car”, or on their fantasy football team, than they do doing due diligence on one of life’s biggest investments, college.
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
College is one of the largest investments your family will make. Having "the talk" with your child increases the chances of a healthy, affordable outcome. Mark discusses using the Four Ps when having the college talk with your child.
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.
FAFSA season starts October 1st! Mark discusses how your Expected Family Contribution (EFC) is calculated and what you can do to maximize need-based aid.
For questions on working with Mark, visit www.SonaWealthAdvisors.com.
The MNice Investor Goes To College Podcast is for educational purposes only. Investment Advisory Services are offered through Sona Financial LLC (DBA Sona Wealth and Sona Wealth Management), a registered investment adviser authorized to do business in states where registered or otherwise exempt from registration. Nothing discussed during this show/episode should be viewed as investment advice. If you have questions pertaining to your specific situation, please consult your own financial professional.