All Posts By

Kevin Brady, CFP®

incentive stock options ISO

What Are Incentive Stock Options (ISOs)?

By Blog
All of today’s largest, blue-chip companies began as the small start-ups of yesterday. Some created entirely new industries, like Google and Netflix, or drastically altered them, like Tesla and Rivian. Most, if not all, grew to become the names we recognize today through equity-based compensation, enriching their founders, executives, and early employees alike (along with investors). A key part of equity compensation, particularly for earlier stage companies, is incentive stock options (ISOs). Incentive Stock Options (ISOs) – Defined ISOs give employees the right, but not obligation, to purchase company stock at a hopefully lower grant price, compared to the fair…
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Solo 401k

Why the Self-Employed Should Consider a Solo 401k

By Blog
Self-employed individuals have multiple options to save for retirement and invest in a tax-efficient manner. One of those options, the Solo 401(k), can be particularly attractive to entrepreneurs running their own business, including those with both a 9-to-5 corporate employer and a “side-hustle” that earns them additional income. What is a Solo 401(k)? A Solo 401(k) plan, also commonly referred to as a solo-k or uni-k, is just like any other 401(k) plan, but is designed to cover a self-employed person with no employees other than his or her spouse. Because it covers only one employee, there is no burdensome…
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laddering life insurance

Laddering Life Insurance to Reduce Costs

By and Blog
A Brief History of Life Insurance Life insurance is a powerful tool in wealth management with a long history dating back to Ancient Rome. Roman soldiers participated in “burial clubs,” in which members pooled resources to help pay funeral costs for the deceased. The actuarial tables used by insurance companies today to help determine policy premium costs have their origin dating back to the 1700s. Life insurance, like any type of insurance, transfers a catastrophic risk away from you and your family to an insurance company. Here the catastrophic risk is your premature death and the loss of your earnings…
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tax savings qsbs

The Powerful Tax Savings of “Qualified Small Business Stock”

By Blog
IRC Section 1202 provides one of the most powerful tax benefits in the U.S. Internal Revenue Code (IRC) to entrepreneurs and investors. However, it is also one of the least recognized IRC Sections, even amongst those who stand to most benefit from its use. Section 1202 provides an exclusion from taxation to a qualified investor of up to $10 million of capital gain or 10 times the stockholder’s adjusted cost basis, whichever is greater, upon the sale of Qualified Small Business Stock (QSBS). Why has such a generous provision in the tax code gone comparatively unnoticed? A look back at…
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private equity

Estate Planning Opportunities for Private Equity Partners

By Blog
As a founder of a private equity (PE) fund, you are likely more interested in sourcing new deals and successfully getting your fund off the ground than thinking about proactive estate planning. This is understandable, but the reality is that a PE fund interest, specifically the carried interest (often referred to as “carry”) earned as general partner, is an ideal asset to gift for estate planning purposes. The main reason is because of its high potential for appreciation and low initial value. What is carried interest and why is it an attractive asset to transfer? PE funds, as well as…
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fiduciary advisor

The Importance of Working With a Fiduciary Advisor

By Blog
Deciding to work with a financial advisor can be a stressful decision. It requires sharing intimate financial details with a stranger and implies a deep level of trust that takes time to build. A reasonable assumption would be that the advisor on the other side of the table is required to act in your best interest over their own. In today’s fractured advisor marketplace, however, the simple truth is it is not always so. Here's why you should work with a fiduciary financial advisor. What is a Fiduciary? A fiduciary is a person (or entity) acting on behalf of another…
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stocks covid

Adding to Stocks During Covid-19

By Blog
The spread of Covid-19 has been referred to as a “black swan” event by some, meaning an occurrence with potentially severe consequences that were unpredictable. The consequences have certainly been severe with disruption to jobs, schools, and everyday life (though health experts would argue whether this was unpredictable). The first quarter of 2020 saw a nearly 35% market drop from the all-time highs of February, in a matter of weeks. The volatility index, or VIX, sometimes referred to as the “fear index” shot through the roof. In the short-term, the U.S. economy, along with many others across the globe, has…
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WeWork

An Important Lesson from WeWork

By Blog
The appeal of the company mission As a millennial, I grew up during the tech era and social media “boom.” Facebook was born in Mark Zuckerberg’s Harvard dorm room in 2004, a story now made famous by the 2010 movie “Social Network.” The first Apple iPhone was launched to market in 2007, after the massive success of the iPod in the half dozen years prior. Uber launched in 2009 as an alternative to expensive and inefficient taxicab options, paired with new technology that made it possible to summon transportation from a cell phone. These companies have changed the way people…
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long-term care

How to Plan for Long-Term Care Costs

By Blog
Many of us think it won’t happen to us, but the statistics say otherwise. 52% of Americans turning 65 will need some type of long-term care services during their lifetimes. The costs quickly climb financially, as do the physical and emotional stresses. The questions that often follow are: how to pay for it all, and what, if anything, can be done to prepare ahead of time. The answers are not easy, but remember, failure to plan is a plan itself. Who pays for long-term care costs? The first answer that comes to mind for many is Medicare or associated Medicap…
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