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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 '18RSU Income & Mortgage Qualification
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 […]
