Insights

Our team at Wealthstream Advisors was excited to host Apollo Lupescu, Vice President at Dimensional Fund Advisors, for a special live event in New York on January 30. 

Many people use Donor Advised Funds (DAFs) for tax-efficient charitable giving during their lifetime. See our article here on what a Donor Advised Fund is, and how it can improve efficiency and reduce taxes for charitably inclined individuals.

The Wealthstream Advisors team is excited to announce our selection to Forbes’ 2023 list of America’s Top 250 RIA (Registered Investment Advisor) Firms.

 As financial planners, we get to assist people on a quest. Simply put, our job is twofold. 

Equity-based compensation is a wonderful way to potentially share in the profits and appreciation of your company. Getting the most out of your equity compensation requires understanding key concepts, terms, and conditions related to this equity. It is also important to understand the tax implications and to make decisions with a long-term financial plan in mind. Not fully understanding what you have been granted or not having a plan can easily lead to mistakes, lost opportunities, and even outright losses.

For employees at late-stage private companies, having Incentive Stock Options where the 409A valuation (or, stated simply, the current valuation) exceeds the grant price might feel like buying a new home that requires renovating. Your cynical side wonders whether the home is actually worth what the appraiser says, and if you should really be putting any additional money into it. Your pragmatic side embraces that this wealth-building opportunity could build a legacy. 

The valuation and exercise of stock options with privately held companies introduces unique complexities for investors. In this Insight, I will review some key considerations with a focus on the main differences between common types of equity compensation and their implications for taxes.

Health Savings Accounts (HSAs), as the name implies, are savings accounts for health care expenses. There are restrictions on who may contribute, how much, and what counts as a qualified medical expense. It is worth exploring whether you have the opportunity to participate in one of these accounts as they provide some compelling tax benefits.

Anyone who has lived in, rented, or owned a home or apartment has some level of familiarity with real estate. Compared to other investments like stocks and bonds, this familiarity can make rental real estate investments seem like the most straightforward way to produce passive income.

Is an “income investing” strategy right for your portfolio? 

The right answer requires a bit of nuance. While many investors may eventually want to rely on their portfolio for income, doing so does not necessarily require shifting toward income-generating investments.

This Insight explains why. Below, we define income investing, examine some common income-generating investments, and explain why this approach is likely not the best way to maximize total returns.