Tag: Tax Implications
Navigating Employee Stock Options, RSU’s and Stock Purchase Plans (Ep. 58)

Navigating Employee Stock Options, RSU’s and Stock Purchase Plans (Ep. 58)

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Stock benefits can be a powerful tool for building wealth, but they often come with confusion and hidden risks.

How do stock options, RSUs, and employee purchase plans work? What tax implications should you consider? How can you protect yourself from overconcentration in company stock?

In this episode, Jim McGovern breaks down different types of stock benefits, explaining how they function, their tax implications, and the risks involved. He provides insights on when to exercise options, how to diversify, and strategies for hedging against potential losses.

Jim discusses:

  • The differences between stock options, restricted stock units (RSUs), and employee stock purchase plans, including how they are granted, vested, and taxed
  • The risks of holding too much company stock, including historical data on stock declines and why diversification is key
  • Tax implications of incentive stock options (ISOs) and non-qualified stock options (NSOs), including how timing affects tax rates
  • How restricted stock units (RSUs) provide a more straightforward benefit compared to stock options and why many large companies prefer them
  • Hedging strategies to protect against stock declines while still maintaining potential for future gains
  • And more

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Podcast: Play in new window | Download (Duration: 35:12 — 32.2MB) | Embed

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Trust Companies vs. Individual Trustees: Which Is Right for Your Special Needs Trust? Discussion with Dan Ehrmentraut of Capital First Trust (Ep. 30)

Trust Companies vs. Individual Trustees: Which Is Right for Your Special Needs Trust? Discussion with Dan Ehrmentraut of Capital First Trust (Ep. 30)

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Supplemental Needs Trust is an often-underrated game-changer, paramount for enhancing the quality of life for individuals with special needs.

In this episode, Jim McGovern talks with Dan Ehrmentraut, Senior Vice President of Business Development at Capital First Trust, about the ins and outs of Supplemental Needs Trusts. Together, they dive into the world of trust management, debunking common misconceptions, and shedding light on how these tools can protect assets and qualify individuals for essential government benefits.

Throughout this episode, Jim and Dan discuss:

  • The definition of Supplemental Needs Trusts, their key benefits, and who can benefit from them 
  • How a trust can qualify an individual for government benefits while protecting other assets 
  • The crucial role of estate planning in preserving the beneficiary’s access to resources and eligibility for benefits 
  • The reluctance of many corporate trustees to administer special needs trusts, and how Capital First Trust fills this gap 
  • And more!

Resources:

Connect with Dan Ehrmentraut:

Connect with McGovern Wealth Group:

About our guest:

Dan Ehrmentraut is a seasoned expert in trust management with an illustrious career in both law and finance. Holding a J.D. from the University of New York at Buffalo and admitted to the New York Bar in 1984, Dan carries a wealth of experience and knowledge. Over two decades, Dan worked his magic in traditional bank trust departments, navigating roles as Trust Officer, Regional Trust Manager, Supervisor of Trust Tax and IRA, Sales Manager, and Department Head. His journey took him further to the doors of several large financial service companies, playing significant roles in business development.

In 2013, Dan joined Capital First Trust Company, expanding its directed trustee presence across various financial and legal landscapes. His vast experience and knack for details have led him to successfully work with numerous financial advisors on complex estate plans, integrating the benefits of a directed trust structure for wealthy clients.

Podcast: Play in new window | Download (Duration: 39:42 — 36.4MB) | Embed

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