Creating stock grants that base payouts for executive employees on more than just their continued employment has become the new norm for a growing number of companies. These special stock grants are known as performance shares, and nowadays tech workers who reach executive status are more likely to receive grants of performance share units (PSUs) as opposed to stock options.

While stock options may still be included in the mix of grants received by top level employees of private companies and startups, PSUs and restricted stock units (RSUs) have overtaken stock options in popularity at public companies due in part to their simplicity. However, performance shares are typically granted in conjunction with RSUs rather than in place of them.

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A revocable living trust is a type of trust that is created and that can be modified while the trust maker is still alive. This structure can provide a comprehensive estate planning solution above and beyond what a standard will can offer. Assets within the trust can be managed, invested, and spent for the benefit of the trust maker during his or her lifetime. At death, a trustee who has been appointed by the trust maker steps in to manage and distribute the property within the trust as outlined in the trust agreement.

There is no either/or when it comes to having a trust or a simple will; having both is plausible. A will should be used to manage assets not mentioned in a trust and to name a guardian for any minors involved. A benefit of establishing a revocable living trust is its ability to provide more direction regarding the use of inherited assets above and beyond what a will can do. A revocable living trust with a pour-over will can help beneficiaries avoid probate, maintain family privacy, and provide a contingency plan if you are ever incapacitated.

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Typically, people sell their homes when they move, taking the equity they’ve built in one house and applying it to the next. But that isn’t always the case. Some savvy homeowners convert their primary residences into investment properties, and while this approach can be a great way to generate additional income and build valuable equity over time, becoming a landlord is not without its challenges.

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If you receive employee stock options or restricted stock units from your employer, congratulations! These forms of equity compensation can create wealth and help you achieve your financial goals. However, this wealth is at risk due to stock price fluctuations and employment changes. To manage these risks, there are 5 things you should know about your employer stock and options that aren’t included in your stock plan education resources.

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Total compensation for many executives and senior level managers includes some form of equity ownership in the company. Whether the company is publicly traded or private, there are multiple ways to accumulate shares of company stock – sometimes with varying tax treatments. And over time, those shares can really add up.

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A 1035 exchange is a provision in the tax code that allows you, as a policyholder, to transfer funds from a life insurance, endowment or annuity to a new policy, without having to pay taxes. The IRS allows holders of these types of contracts to do this in order to replace outdated contracts with new contracts that have improved benefits, lower fees and different investment options.

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Dollar cost averaging is a stock market investing technique where you buy a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low and fewer shares are bought when prices are high. This can help reduce the impact of volatility or price swings on purchases of financial assets.

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If you’re changing jobs or retiring, it’s important to know the rules regarding moving funds from your employer sponsored retirement plan. The wrong move could cost you in income taxes and early withdrawal penalties. You typically have four options, and you may engage in a combination of these options. You can leave the money in your former employer’s plan, if permitted. You can also cash out the account value, but you should research the tax implications first.

There are two basic ways to move retirement plan assets from one retirement plan to another with no tax consequence. With a direct rollover, your financial institution or plan directly transfers the payment to another plan or IRA; no taxes are withheld and your account continues to grow tax-deferred. With an indirect rollover, a check is made payable to you. You have 60 days to deposit it into a Rollover IRA – after that the entire amount is considered income, and subject to taxes.

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A retirement income plan is needed because life changes in retirement. Your retirement plan should account for every year in retirement, even past your life expectancy.

For each year, make a list for you and your spouse that include social security income, pensions and annuity income. Also list earnings from investments and working part-time. List any other fixed and regular income sources.

For each year, list your desired gross retirement income need. Be sure to include taxes, the effects of inflation and potential medical expenses. Then for each year, determine the gap or surplus by subtracting expenses from income.

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If you own investment property, you need to know how the IRS Section 1031, commonly referred to as a 1031 exchange, can work for you. A 1031 exchange is a strategy that allows an investor to defer capital gain taxes by selling a property and then reinvesting the proceeds into a new, like-kind property.

Here are the basic rules of the 1031 exchange: First, the taxpayer who sells must be the same taxpayer who buys. Second, you must identify the new property within 45 calendar days after closing on the first property. Third, you must purchase the replacement property within 180 calendar days after closing. Fourth, the replacement property price must be equal to or greater than the old property.

If the new property price is less than the old one, the difference may be taxed. A 1031 exchange can be a powerful tax-deferment strategy offering many opportunities to investors.

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With a traditional IRA, you may qualify for a tax deduction when you invest your money. But later, when you take the money out in retirement, all those distributions are taxed. The Roth IRA is the opposite. It has no deduction when you put the money in, but later, all distributions are tax-free when you take the money out during retirement.

By converting from a traditional IRA to a Roth IRA, future gains become tax-free. But when you convert funds from a traditional IRA to a Roth IRA, you must pay taxes on the converted amount that year. You can choose to convert all or just part of a traditional IRA to a Roth IRA.

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Hidden within the layers of bureaucracy of every state government lies the office of unclaimed property. This office serves at the pleasure of both the state treasurer and chief financial officer and is responsible for carrying out the process of escheatment. Escheatment refers to an archaic process whereby the title of financial assets such as bank deposits, retirement accounts, security deposits, pension checks, tax refunds, uncashed paychecks, insurance policies, and orphaned safe deposit boxes that have been dormant for some time are transferred to a state authority.

When pressed on this issue, state officials often explain that the escheatment process keeps corporations from turning one’s forgetfulness into their profit. It can be argued, however, that states are guilty of the same.

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