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07 Jan '23The Difference: ISOs vs. NSOs Equity Compensation
Continue readingIncentive stock options (ISOs) and non-qualified stock options (NSOs) are two common types of equity compensation. Tech companies in the United States often give them to key employees. Both ISOs and NSOs provide executives with an opportunity to purchase company stock at a predetermined price. But there are several differences between the two in terms […]
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02 Dec '22Amazon Employees Retirement Investments – Revisited
Continue readingRetirement investments of Amazon employees brought to us by their annual Department of Labor (DoL) filings. Form 5500 lists which investments Amazon 401(k) plan participants have selected for their retirement funds—giving us insight into how Amazon.com employees choose to invest for retirement. So what do Amazon employees invest in? Perhaps not surprisingly, the Company Stock […]
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18 Nov '22Equity Compensation at Tech Companies
Continue readingRestricted Stock Units (RSUs), Employee Stock Purchase Plans (ESPPs), and Stock Options are all forms of commonly offered equity compensation at tech companies in the United States. Overview of Tech Firm’s Equity Compensation Methods RSUs are typically granted as a form of compensation to employees and are a promise to deliver company stock at […]
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27 Oct '22When to Sell RSUs for Tech Employees
Continue readingWhen is the optimal time to sell my RSUs? Many technology company employees receive grants of Restricted Stock Units (RSUs). This form of equity compensation may be in the form of a one-time hiring bonus, a reward for exceptional performance, or part of the annual compensation program. Regardless of how you received your RSUs, everyone […]
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18 Oct '22Stories VS. Studies
Continue readingHave you ever noticed that many financial salespeople are selling some story instead of quoting empirical studies (spinning stories vs. empirical studies)? A bold prediction on the future price of gold, or a more subtle discourse on why Apple stock would be a good addition to your portfolio, they are all spinning a story. The […]
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11 Oct '22Retirement Spending
Continue readingAre you saving enough for retirement? Can your investments support your retirement spending desires? These are difficult questions to answer. It boils down to how much money you need in retirement to maintain an acceptable lifestyle. Unless you are close to retiring, you likely don’t have a good grasp of your retirement spending needs. How […]
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07 Oct '22Compounding Investment Returns
Continue readingThe stock market is down significantly this year with many tech companies losing over 30%. Against this dismal backdrop, compounding returns and adding to your investment portfolio may not be top-of-mind. Yet it behooves you to keep in mind that U.S. equity markets historically return about 10% per year on average over the long term. […]
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26 Sep '22Savings Bonds Revisited—9.6% Yield
Continue readingBack in May 2021, I initially discussed the surprising merits of the humble U.S. Savings Bond in my post SAVINGS BONDS – INFLATION HEDGE SERIES. At that time, the Series I bond was paying 3.54%. Today, Series I Savings Bonds yield 9.6%. These bonds are paying 9.62% annually for purchases through October 2022. This rate […]
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16 Sep '22Fat FIRE for Tech Workers
Continue readingFor software engineers, coders, hackers and developers working at successful tech firms, the prospect of early retirement may be appealing, but for many, the lifestyle choices required of the FIRE movement are not worth it. For many high-earning tech workers, retiring before the traditional mid-60s retirement age is the plan, but with an elevated standard […]
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19 Aug '22What Do Apple Employees Invest In?
Continue readingAt least for their company sponsored retirement plan, we have the data to answer this question thanks to the Department of Labor (DoL). 401(k) plan sponsors are required to file Form 5500 with the DoL every year. Form 5500 lists which investments Apple 401(k) plan participants have selected for their retirement funds—giving us insight into […]
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12 Aug '22How Do Microsoft Employees Invest for Retirement?
Continue readingWe have data to answer this question thanks to the Department of Labor (DoL). 401(k) plan sponsors are required to file Form 5500 with the DoL every year. Form 5500 lists which investments Microsoft 401(k) plan participants have selected for their retirement funds—giving us insight into how Microsoft employees choose to invest for retirement. So, what […]
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13 Mar '22Live the FIRE Movement
Continue readingThe FIRE movement is about Financial Independence, Retire Early (FIRE). Generate enough “income” from your investments to cover your expenses, so you no longer needing to work to pay your expenses (all prior to traditional retirement age). The core principals include: Dramatically reduce expenses Save aggressively and funnel savings into investments Accumulate enough assets to […]
