Unrivaled Wealth Management

I've helped monetize millions of dollars in Restricted Stock Units (RSUs).

They can be an incredible wealth-building tool for employees with equity comp.

Here's what you need to know to maximize their value 👇🏻

Equity compensation has turned ordinary people into millionaires.

But most people have no idea how it works.

Here's the beginner's guide to equity compensation.

PS: This is for educational purposes only and should not be taken as individual advice.

How to create an estate planning disaster...

Don't keep up with your beneficiary designations.

Beneficiaries listed on an account supersede what's written in estate docs.

I've had clients come to me after getting divorced, and their ex-spouse was still the primary beneficiary of their retirement account(s) and life insurance.

They thought everything was taken care of because they had updated their estate documents.

But had they passed prior to us updating beneficiaries, their ex would have inherited all the assets they were still named beneficiary of. 😣

Even worse, I've seen instances where the ex-spouse still held Financial and Healthcare Power of Attorney 😳.

Bottom Line: Just like financial planning, your estate plan isn't a one-time exercise. Make sure you're regularly reviewing your plan with a financial and law professional.

Life is unpredictable.

Uncertainty can be scary, but money can buy you peace of mind.

Here's how you can use financial planning to create the life you want to live:

Financial Planning is Your Friend

The goal of financial planning is to enhance your life.

- Taxes
- Investing
- Insurance
- Estate Planning
- Retirement Planning

It’s all meant to protect and squeeze as much out of your wealth so you can do more of what you love.

A financial planner:

- Learns about your situation
- Finds out what’s important to you
- Creates a plan to achieve your desires

When your life or priorities change, your financial plan is outdated.

That doesn't mean it's useless. It means we need to adjust to new information.

Why does this matter to you?

Recognize that financial planning isn’t:

- A whole life insurance policy
- A risk tolerance questionnaire
- A one-time retirement analysis
- Contributing to your 401(k) to defer taxes
- A 100-page binder collecting dust on your bookshelf

Financial planning is a never-ending series of adjustments to help you live the life you want.

Achieving the life you want doesn't happen by chance. It's purposeful.

Work with someone who's dedicated to that purpose.

If your advisor doesn't:

- Ask about your life
- Learn why money matters to you
- Assess your risks and opportunities
- Actively share strategies for your situation

You're not getting financial planning. You're getting money management.

If that's what you want, that's great!

My advice:

Make sure your financial advisor cares about your future as much as you do.

That might seem far-fetched, but there are plenty of us out there.

Investors have poured more than $100 billion into this account.

Most of them are using it completely wrong.

Here are 7 things you need to know about Health Savings Accounts:

What's an HSA?

A savings account for medical expenses... on steroids

• Contributions are tax-deductible
• Funds can be invested and grow tax-free
• Provides supplemental retirement savings
• Withdrawals for medical expenses are tax-free at any age

Eligibility Requirements

I know it’s exciting, but before you rush to open an HSA, confirm you:

• Aren’t enrolled in Medicare
• Can’t be claimed as a dependent on someone else’s tax return
• Are enrolled in a High-Deductible Health Insurance Plan (HDHP)

More on HDHPs...

HDHPs have higher deductibles than traditional insurance plans.

In English: You pay more out of pocket before your insurance kicks in.

^ Make sure you're comfortable with this!

Most employer plans offer HDHPs.

They’re also available on the healthcare exchange.

Moving on...

Contribution Limits

2023 HSA contributions max out at:

$3,850 for individuals
$7,750 for family plans
If you’re age 55+, you can contribute an extra $1,000.

These limits adjust for inflation.

Contribution Tax Advantages

Like 401(k)s and IRAs, HSA contributions reduce your taxable income.

However, they also:

- Escape the 7.65% F**A tax
- Aren't subject to income restrictions like IRAs

Withdrawals

The Golden Rule for HSA withdrawals: Keep your receipts.

There is no reimbursement deadline for qualified expenses.

If you have documentation, you can reimburse yourself 20 years later.

I repeat, no reimbursement deadline.

Here's where things get interesting...

When you’re young and healthy, healthcare is cheap.

Medical expenses are more expensive and frequent as you age, especially if you retire before 65 (Medicare age).

If you can afford to, pay for current medical expenses out of pocket and leave your HSA funds invested.

Play your cards right, and you can pay one of the biggest retirement expenses completely tax-free.

What if you're as healthy as an ox and don’t have high medical expenses in retirement either?

Not to worry.

When you turn 65:

- Every withdrawal is penalty-free
- Non-medical expense withdrawals are taxed as ordinary income
- Withdrawals for qualified medical expenses are tax and penalty-free

One thing to keep in mind...

If you have leftover HSA funds:

- Spouses can inherit HSAs and treat them as their own
- Any other beneficiary must recognize the account's value as taxable income in the year of inheritance.

Make sure spending down your HSA is part of your retirement and estate plan.

Every person's financial situation is unique.

This information is for educational purposes only.

Don't implement a strategy without consulting with a financial professional who's familiar with your situation.

Matthew Garasic shared his thoughts with InvestmentNews about zooming out and focusing on the bigger picture during times of short-term hysteria.

Financial advisors tune out debt ceiling hysteria Many advisors rate the Washington kerfuffle about raising the debt ceiling right up there with worrying about being struck by a meteor.

Matthew Garasic, CFP(r) shared his thoughts on what the debt ceiling standoff could mean for investors.

Uncertainty Reigns Amid Debt Ceiling Standoff The 2011 crisis offers clues on how events may unfold.

https://www.unrivaledwm.com/post/advisor-business-models-and-conflicts-of-interest

As an investor, its crucial to be aware of the potential conflicts of interests that can arise in various advisor business models.

Our latest blog details how conflicts may arise and what investors can do to keep them to a minimum.

Advisor Business Models and Conflicts of Interest Financial service business and compensation models each present inherent conflicts of interest. Unfortunately, investors are forced to decipher industry-specific terminology and misleading advisor titles to recognize these conflicts and how they may materialize in their pursuit of an honest and comp...