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13 Sep '23The ESPP Decision – More Equity?
Continue readingAn employee stock purchase plan (ESPP) is a program offered by a company to its employees to purchase shares of company stock at a discounted price. ESPPs are a popular way for employees to build wealth over time and share in the company’s success. There are two main types of ESPPs: Qualified ESPPs: These plans […]
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31 Mar '23RSU Income & Mortgage Qualification
Continue readingWorking for a tech company that uses Restricted Stock Units (RSUs) as compensation can limit your ability to qualify for the home mortgage you might desire. Luckily, more mortgage providers now accept income from RSUs in their qualification calculations, but it may take some advanced planning on your part. More about Equity Compensation at Tech […]
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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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23 Feb '22Amazon Doubles Pay Cap!
Continue readingAmazon is doubling down on its efforts to retain talent and attract new hires by increasing its cap on base cash compensation to $350,000, more than double the previous amount, according to an internal announcement. The company cited “a particularly competitive labor market” as the reason for the move, which was only for salaried corporate […]
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10 Oct '21How Do Amazon Employees Invest For Retirement?
Continue readingThanks to the Department of Labor (DoL), we have data to answer this question. 401(k) plan sponsors are required to file Form 5500 with the DoL every year. Along with other information, 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 […]
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17 Sep '20Are Amazon and Google technology companies?
Continue readingWhen you think of large technology companies, you probably think of companies like the so-called FAANG stocks: Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Google (GOOG). Not a bad starter list of highly successful “tech” companies. But from an investing standpoint—of the 5 FAANG stocks—only Apple Inc. is considered part of the Information Technology […]
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31 Jul '20Target Date Retirement Funds
Continue readingThe most common investments in many tech company 401k plans are target date retirement funds. These funds provide employees with exposure to a diversified investment portfolio that systematically shifts out of risky asset classes (like stocks) and into less volatile investments (like bonds) as you get older and closer to retirement. Firms like Amazon.com and […]
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09 Jan '19Are Qualified Opportunity Funds A Good Investment?
Continue readingDo you hold highly appreciated stock that you want to sell, but don’t want to pay the subsequent capital gains tax? If so, there is a new investment option to consider. Investing in a Qualified Opportunity Fund (QOF) allows you to defer federal tax on your capital gains while freeing up the money you initially […]
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25 Oct '18Amazonian’s $1 Billion Retirement Bet
Continue readingAmazon employees have invested $1 billion of their 401(k) retirement funds[1] in their employer’s stock—by far the single largest holding in Amazon’s 401(k) plan. Luckily, this was a very good bet during 2017 (up 56%) and has continued to be an outstanding investment during 2018 (up over 70% as of end of September). Implying a […]
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10 Oct '18Save Taxes on 401(k) Distributions
Continue readingPreferential Tax Treatment on Company Stock in Your 401(k) If you hold shares of your employer’s stock in your 401(k) account, there is an IRS rule with the potential to significantly reduce your future tax burden. The rule pertains to net unrealized appreciation (NUA). NUA is the difference between the price you originally paid for […]
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25 Sep '18
RSU Income & Mortgage Qualification – 2018
Continue readingWorking for a tech company—like Amazon—that uses Restricted Stock Units (RSUs) as compensation, can limit your ability to qualify for the home mortgage you might desire. Luckily, more mortgage providers now accept income from RSUs in their qualification calculations, but it may take some advanced planning on your part. This change is likely based on […]
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08 Jun '18Statistically Probable Investing
Continue readingWe are often asked, “What’s your investment thesis?” Although various investment approaches impact your accumulation of wealth differently, we don’t believe selecting the “best” investment thesis is the most critical decision. The largest long-term influence on your wealth—unless you are already independently wealthy—is more likely whether you have implemented a disciplined investment plan. Systematic contributions […]
