Dan Zajac, philadelphia financial advisor

Using After-Tax Value to Evaluate Liquidation Priority of Concentrated Equity

Concentrated equity can be defined as owning a substantial position in one company’s stock.  For such concentrated positions, one risk for a single owner may be a lack of diversification*.  Or said another way, having too many eggs in one basket. However, concentration risk may not be a bad thing. In fact, concentration in one company stock […]

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Dan Zajac, philadelphia financial advisor

6 Strategies to Exercise Your Employee Stock Options

The choice to exercise your employee stock options can be a difficult one, regardless of whether you have incentive stock options or non-qualified stock options. Difficult because of the potential complexities of exercise and technical jargon required in the process. Other issues may be particularly paralyzing due to behavioral influences. For example, personal beliefs that the […]

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Dan Zajac, philadelphia financial advisor

The Basics of Restricted Stock

Restricted stock is often used as part of a compensation package for a key employee.  In lieu of increased wages, restricted stock may be offered. Specifically, restricted stock is a right to receive the shares of stock ONLY after you’ve satisfied specific conditions detailed by your employer.  Often, this condition is continuing to work for […]

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Dan Zajac, philadelphia financial advisor

Is a Non-Qualified Deferred Compensation Plan a Good Deal?

It’s common for employees that earn considerable income to be offered a non-qualified deferred compensation plan (NQDC). Simply put, an NQDC plan allows a plan participant to defer receiving a portion of income in the year it is earned, to later receive this income in the future. The deferral of income is also, in effect, […]

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Dan Zajac, philadelphia financial advisor

Exploring the Details of A Cash Exercise of Stock Options

When it’s time to exercise your employer-provided stock options, you generally have one of two options: a cash exercise or a cashless exercise. You may choose a cash exercise in the hope of achieving preferential long-term capital gains treatment on further appreciation of the stock. In addition, you choose a cash exercise in order to […]

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The Math Behind a Cashless Exercise of Non-Qualified Stock Options

When the time comes to exercise non-qualified stock options, the question of whether to perform a cash exercise or a cashless exercise is a common one. In many cases, option holders default into a cashless exercise—and for good reason. Among other things, a cashless exercise may be an easy option and may result in zero […]

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Dan Zajac, philadelphia financial advisor

Comparing the Solo(k) and SEP-IRA for the Self-Employed

For those who are self-employed, the question of how to save for retirement is a frequent one. Fortunately, the answer isn’t all that difficult. Establishing a retirement plan as a self-employed individual can be easy. In fact, it can be easy AND more advantageous than a typical employer-sponsored 401(k) plan. This is because as the […]

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January 2017 Market Recap

With a country that seems divided by political lines, there is one thing nearly everyone can agree on: things under President Trump have been anything but uneventful. The President wasted little time in the first days of his term. Beginning with an executive order intended to start the process of repealing Obamacare, President Trump continued […]

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Exploring Tax Rules for Non-Qualified Stock Options

On the surface, the tax rules associated with non-qualified stock options are relatively straightforward. Upon receipt of non-qualified stock options, no taxes are due. Furthermore, these stock options are not taxable until you exercise your shares. This “exercise control” allows the option owner to defer income tax while potentially creating considerable wealth, should the value […]

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Dan Zajac, philadelphia financial advisor

What is a Roth Conversion and Why I Love It

Roth IRAs may be fantastic financial planning and investment vehicles for many reasons.  Specifically, their tax-deferred growth and tax-free income features make them particularly attractive to savers of all ages and incomes. Unfortunately Roth IRAs were not always a readily available option for everyone.   In fact, the rules for contributing to a Roth IRA were […]

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