Financial Planning

Gain information about the basics of financial planning, including how to conduct an annual financial checkup, what a fee-only advisor does, and more.

Financial Planning Basics

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RSUs are taxed as ordinary income at prevailing federal and state income tax rates. RSUs are subject to tax upon delivery, which is usually when they become vested. You should expect the value of your RSU’s vesting in a given year to count toward your taxable income for that year.

Yes, non-U.S. citizens are eligible for social security. Non-citizens must be in the country legally and have a Social Security number. As with citizens, retirement benefits are only available for workers with a minimum of 40 work credits, which take at least 10 years to accrue. Non-citizens with fewer than 40 credits may be able to count work outside the U.S. toward Social Security credits if their home country and the U.S. have a totalization agreement.

Yes, securities can be donated to qualified organizations as long as they have a brokerage account with which to accept the gift. Donating stock can offer the donor significant tax savings. The market value of the gifted stock (up to 30% of adjusted gross income if held for more than one year) is deductible, and no capital gains tax is paid on the appreciated stock.

The Great Wealth Transfer is the massive transfer of assets and wealth from Baby Boomers to their Gen X and Millennial children that is expected to unfold over the course of the 2020s. Estimates of exactly how much wealth younger generations will come into vary from a conservative $30 billion to over $70 billion.

Key Terms

Turnkey Asset Management Program Human-Life Approach Investment Advice Recession Rich Open Architecture

A turnkey asset management program (TAMP) is a platform financial advisors use to outsource some of their work, like portfolio construction and rebalancing, so they can focus on their client’s personal needs and goals.

The human-life approach is a method of calculating how much life insurance a family needs based on the financial loss they would incur if the insured person were to pass away today.

Investment advice is any recommendation or guidance given with the goal of influencing an investor’s decision regarding their investments.

Recession rich is a slang term for someone who manages to maintain or increase their wealth during a recession.

Open architecture refers to a financial institution’s ability to offer its clients a mix of proprietary and external products and services. Open architecture helps to ensure clients receive the best possible financial advice and services, rather than the services that are most profitable for the institution.

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