Compound

🏆 We’re proud to share that Compound Planning is ranked among America’s Top RIAs and secured the number 2 spot on the 50 Fastest Growing RIAs list for 2024 by Financial Advisor Magazine. “This achievement is a direct reflection of our relentless focus on innovation to meet the evolving needs of our clients,” said Christian Haigh, Co-founder and CEO of Compound Planning. “We are deeply grateful to our clients for their trust and to our team for their hard work and passion.” You can read the full story here: https://lnkd.in/g5t3kPah

Most employees undervalue their RSUs during acquisitions. This is a crucial mistake that may have significant financial repercussions. Here’s how to fix it: Start by figuring out what you own — you can typically find this in your offer letter or equity management tool. Next, determine how many of those RSUs you actually own through vesting. This information is the base for all your decisions moving forward. Here's where to look: → Private companies often use tools like Carta or Shareworks. Public companies use brokers like Schwab or Morgan Stanley. → Your offer letter usually has your vesting schedule. This tells you how many of your RSUs you actually own now. But this is just the start. Then, determine the following: → What are the potential outcomes of an acquisition, and what do they mean for you? → What actions should be taken to make the most of this opportunity? Our guide in the manual covers it all. Just check it out! https://lnkd.in/eaQYe_p8 #financialplanning #wealthmanagement #acquisition

The actions you take following a significant income boost—whether from a promotion, job change, or new business venture—can seriously influence your family’s long-term wealth strategy. Here are four steps to effectively capitalize on this opportunity: → Avoid lifestyle creep: Consider allocating a substantial portion of your increased income towards savings and investments. This proactive approach can help secure your financial future and offer greater flexibility in the years ahead. → Increase retirement contributions: If you haven’t yet maximized your 401(k) contributions, now is the ideal time to do so. For 2024, you can contribute up to $23,000 to a 401(k), with an additional $7,500 catch-up contribution available for individuals aged 50 and older. → Reassess your tax situation: Adjust your tax withholdings or estimated tax payments to prevent underpayment penalties and ensure compliance with tax obligations. → Review your insurance coverage: Consider increasing your life insurance to safeguard your family’s lifestyle in the event of unforeseen circumstances. Check out our comprehensive guide at the link in the first comment.

College costs can easily exceed $100k per year per child. Let's break down the key components of an effective college savings plan: → Set a realistic savings goal: Evaluate factors such as the type of institution (public vs. private), available scholarships, and the increasing influence of inflation on tuition costs. Starting with a budget of $100k per year is a good approach but may not be enough for private schools. → Leverage 529 College Savings Plans: These tax-advantaged accounts offer significant benefits, including tax-free growth and withdrawals for qualified educational expenses. → Maximize your contributions: For 2024, you can contribute up to $18k per beneficiary ($36k if married filing jointly) without triggering gift tax implications. Couples can also superfund a 529 Plan by contributing up to $180k in one year, which prorates the lump sum contribution over five years. → Start early and stay flexible: You can open a 529 before your child is born and switch the beneficiary later, giving your children a head start on the power of compounding. Recent legislation also allows you to roll over up to $35k in unused 529 funds to your child's Roth IRA, adding additional long-term financial benefits and flexibility.

The average American family spends 33% of their income on housing. This becomes even more critical when starting a family and considering a bigger home. Let's break down the key factors to consider: → Affordability: Aim to keep your total housing costs, including property taxes, insurance, and maintenance, below 30% of your gross income. → Return on investment: To maximize the return on your investment, plan on staying in your home for at least 7-10 years, allowing appreciation to cover transaction costs. Buying a bigger home isn't just about increasing your square footage, but creating a stable financial foundation for your growing family.

Significant life changes cause 73% of people to reevaluate their career goals. But many overlook the opportunities to set themselves up for success along the way. Let's break it down: → If you’re growing a family, expect at least $1,200+ in one-time costs for essentials like cribs and a minimum of $550+ monthly for ongoing expenses. →To prepare, build up your emergency fund to cover 6-12 months of expenses. It's not just the financial protection, but it's the peace of mind that the protection brings. Additionally, if you’re looking to plan for your children’s education, you should be aware that education costs are staggering (and rising), often exceeding $100,000 per child. But compound interest is your ally. Start early, automate monthly transfers, and involve extended family. As your net worth increases, resist the urge to inflate your lifestyle. Limit spending increases to 5-10% of your gross income. When you're ready to turn life transitions into financial opportunities, our comprehensive guide is here for you. https://lnkd.in/eP9NgYKn

The average cost of raising a child can soar to $32,000 annually, yet many working professionals are unaware that efficient tax planning can significantly alleviate this financial burden. We developed a comprehensive guide for professionals seeking to navigate life transitions while minimizing their tax obligations and maximizing their wealth. → In Week 1, Tara Shulman shared strategies for mitigating taxes through the strategic allocation of investments across appropriate accounts. → In Week 2, Jonny Jonson, CFP®, CPA talks best practices for effectively managing major life changes, such as starting a family and preparing for your children’s education. The Manual is here to support you at every stage of your journey.👇

You’ve worked hard to grow your career—it’s exciting and well-deserved. But there’s a catch: The IRS also wants it’s share of your success. As your income rises, so does your tax bracket, and before you know it, a big chunk of your hard-earned money could be slipping away. But don’t let taxes overshadow your achievements. With the right planning, you can keep more of what you earn and reduce your tax burden significantly. Here are a few options to consider: - Maximize your pre-tax retirement contributions to lower your taxable income now. - Think about a Roth IRA conversion to lock in today’s tax rate and enjoy tax-free withdrawals later. - Use tax-loss harvesting to turn market downturns into tax-saving opportunities. - Consider contributing to post-tax retirement accounts for tax-free income when you retire. Keep in mind: The right option for your friend, uncle, or neighbor might not be what’s best for you. And the best option this year might not be the right choice next year.

Most busy professionals are laser-focused on increasing their income. But here’s where many miss the mark:

Retirement isn’t just a financial milestone — it’s a major life transition. Reed Nothwang, CFP® recently shared his insights in an article by David Conti on Advisorpedia, discussing how advisors can help clients find new purpose during retirement. For many of Reed’s clients — especially those who had demanding careers, like law firm partners — retirement can feel like an identity crisis. Without the structure and purpose a career provides, the transition can be tough. “Our careers become a huge part of our identity, and without a purpose to drive you in retirement, many of us will feel like there's something missing,” Reed explains. It’s important to explore new opportunities that tap into both the emotional and mental side of retirement.  Some law firms offer a “glide path” to help their partners gradually shift into retirement, allowing them to continue contributing in meaningful ways: Like through mentoring, public speaking, or working with nonprofit boards. One of Reed’s clients is a great example: They turned their vacation home near Yosemite into a retreat for local churches and youth groups. They aren't just offering a getaway — they’re providing meals, guidance, and a space to connect, extending their role as parents in a whole new way. Want to read more about how advisors like Reed are helping clients “unretire” and rediscover purpose? Check out the full article by David Conti: https://lnkd.in/eV-z2HWd