In 2020, an estimated 73% of Americans gave money to charitable causes. Quite frankly, that figure is higher than I anticipated when I began researching this blog post. Even more impressive, that is the lowest percentage of the 21st century (not too surprising given the difficult financial circumstances of the last year). The average figure […]
“The Mini Private Charitable Foundation”: Donor Advised Funds Read More »
Contributing to your 401k may not be the most glamorous topic in the investing world, but it is vital that you take advantage of this savings vehicle. Managed properly, the ability to set aside tax-deferred dollars to invest for your retirement will make an enormous contribution toward achieving your goals in the future while simultaneously
Maximizing Your 401k Contributions Read More »
When a company gives you stock options as part of your compensation package, they’re essentially offering you partial ownership. However, your options usually must vest first, meaning you need to work for the company for a period of time if you want to actually receive that ownership stake. Companies generally use vesting to encourage you
Stock Option Vesting Explained Read More »
As with any investment, knowing exactly when to sell employee stock options for maximum value is an impossible task. Markets are unpredictable as a whole and when we narrow our view to predicting the short-term fluctuations in price of a single stock, you may do just as well flipping a coin. Layer in the fact
The Big Question: When Do I Exercise My Employer Stock Options? Read More »
In the words of the esteemed Warren Buffet, “Never invest in a business you cannot understand.” While this core component of Buffet’s investment process certainly has merit, all too often the principle is taken to extremes by individuals with robust compensation programs in their own company’s equity. After all, what business could you understand more
Concentrated Exposure: Just How Much Company Stock Can I Afford to Have? Read More »
At the top of nearly all publicly traded organizations, you’ll find key employees restricted from trading company stock for designated portions of each calendar year; typically, a window of time before and after all major financial reporting deadlines and surrounding any large events like mergers and acquisitions. These restrictions exist because such individuals are privy
So, You Have Company Stock Trading Restrictions: Blackout Periods & 10b5-1 Plans Read More »
A lever works by reducing the amount of force required to move an object by increasing the distance through which the force acts. In the world of investing, leverage appears everywhere and is the act of using “borrowed” financial instruments (the lever) to increase the return on an investment. In our case, the fixed exercise
Illustration of Leverage in Stock Option Value Read More »
Not to be confused with options traded by retail investors, employer stock options are a form of compensation used commonly by both start-up firms and well-established public corporations. Essentially, an employer stock option is a contract between employer and employee that grants the employee the right to purchase a stated number of company shares at
What are Employer Stock Options and Why Would a Company Choose to Offer Them? Read More »
Highlights Adding to its 18.4% gain in 2020, the S&P 500 returned 6.2% in the first quarter. Just like the fourth quarter, value stocks outperformed growth stocks, in this case by 8.7%. The broadest measure of the fixed income markets lost 3.4% as interest rates rose in the quarter. Real GDP grew at an annual
Buckhead Capital – Quarterly Commentary for First Quarter 2021 Read More »
The stock market is overvalued. You may find a few dissenting opinions out there, but statistics do not lie. The CAPE ratio (a measure of a company’s earnings adjusted for typical market cycles in relation to its share price and trusted measure of S&P 500 valuation) is currently1 35.08. In simpler terms, this means that