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Financial Planning Archives - Page 2 of 17 - Wealthspire | Page: 2

incentive stock options ISO

Stocks

Financial Dictionary
What Is a Stock? A stock is a long-term, growth-oriented investment representing ownership in a company; also known as ‘equity.’ How to Invest in Stocks When investing in stocks, you don’t necessarily need a lot of money to get started – you can invest with as little as $50. You can also decide whether to pick and choose stocks individually, have an expert to manage the process, or use your employer’s 401(k). Once you start to invest in stocks, you might want to open an IRA or a brokerage account. This allows you to have some options and determine what…
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Bear/Bull Market

Financial Dictionary
What is a Bear or Bull Market? A bear market is a prolonged period of falling stock prices, usually marked by a decline of 20% or more. The opposite is a bull market, in which prices are advancing in an upward trend. Are We in a Bull or Bear Market? Markets are relative rather than absolute, as the market changes every second, so whether we are in a bull or bear market will depend on the time frame being referenced. Investment strategies are dependent on the holding period for an investment, meaning day traders will try to profit from a…
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Basis Points (BPS)

Financial Dictionary
What is a Basis Point? A basis point represents one gradation on a 100-point scale representing 1%. This term is used especially in expressing variations in the yields of bonds. Fixed income yields vary often and slightly within one percent and the basis point scale easily expresses these changes in hundredths of 1%. Basis Point Calculator One basis point is equal to 0.01% or 0.0001. To figure out basis points as a percentage, simply multiply the basis points by 0.01%. For example, if a stock option is worth $6,000 and increases by 50 basis points, multiply 50 by 0.01% and…
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Appreciation

Financial Dictionary
What is Appreciation? Appreciation means that the value of a financial asset increases over time. This increase occurs for many different reasons, including increased demand, weakened supply, or a change in inflation or interest rates. What Causes Appreciation? Appreciation can be caused by a number of factors, like economic growth or changes in interest rates. If a company’s growth is faster than that of similar companies or at a quicker rate than expected, then stock prices can increase and lead to appreciation as well. How to Invest for Appreciation When considering mutual funds, look for investments that will rise in…
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tax law changes

Estate Planning in Light of Tax Reform: Your Questions and Our Answers – 2022 Update

By and Blog
This post will help you unpack some of the estate and gift tax provisions of the 2017 Tax Reform Act, as well as answer some of the most pressing questions raised by the changes. In a nutshell, what stayed the same and what changed? One major item that stayed the same is the simple existence of an estate tax. The initial tax reform bill from the House called for a complete elimination of the estate tax, which didn’t make its way into the final law. Trump had also talked about altering the current date-of-death basis step-up for gains above a…
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account beneficiaries

Pay Attention to How Your Accounts are Titled

By Blog
Do you have sizeable jointly-held accounts with your spouse? Is your estate large enough that it could be subject to federal or state estate taxes? If you answered yes to both of these questions, then pay attention, because your Will may not do what you think it does. What’s the problem here? Your Will is not the end of the story. Your Will might only “work” if your accounts are titled properly. It’s not uncommon for us to see well-drafted Wills with solid tax planning incorporated into the estate plan. In the case of a high net worth client, this…
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tax cheat sheet

2022 Federal & State Estate and Gift Tax Cheat Sheet

By and Guides & Whitepapers
Here we have provided a “cheat sheet” to keep in mind for 2022 federal estate, gift and GST exemptions, as well as exemptions and inheritance tax consequences in specific states where a number of our clients reside. Federal Estate, Gift, and GST Tax Below is a summary of the current federal estate, gift, and generation-skipping transfer tax provisions for 2022. Note that, under current law, the increases in exemption amounts that began in 2018 are set to expire in 2026, at which point they will revert back to the pre-2018 numbers (i.e., $5,490,000 per person, indexed for inflation). Gift and…
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inflation

Inflation

Financial Dictionary
What Is Inflation? Inflation is an increase in the average price of goods or services in an economy. Each month, the Bureau of Labor Statistics reports on the average level of prices when it releases the Consumer Price Index (CPI). Inflation is measured as the percentage increase in average level of prices over a select period of time. In a stable economy, an average inflation rate is typically around 2%. Inflation Calculator You can use an inflation calculator to see the purchasing power of the U.S. dollar and how it has changed over the years. With this tool, you can…
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