Skip to main content

Author: Zachary Morris, CFP®

Having traveled to over 35 countries, Zach is a believer in Ralph Waldo Emerson’s statement that Life is about the journey, not the destination. Being a CERTIFIED FINANCIAL PLANNER™ provides Zach the opportunity to help clients define and realize their journey, and co-founding Paces Ferry Wealth Advisors, an independent firm, allows the freedom to define the client experience along the way.

WHAT You Need to Know About RESTRICTED STOCK UNITS EXPLAINED!

In this video, I’ll break down everything you need to know about Restricted Stock Units (RSUs)—how they work, their tax implications, and when it makes sense to sell them. RSUs are a form of compensation provided by companies, offering employees shares of company stock once certain conditions are met—typically through a vesting period tied to continued employment. Unlike stock options, RSUs don’t require you to purchase shares. Instead, you automatically receive the shares once they vest, making them an attractive tool for building long-term wealth.

If you’ve received RSUs as part of your compensation package, it’s critical to understand how they are taxed at both the vesting and sale stages. This video also covers strategies for deciding when to sell your RSUs to avoid unnecessary taxes and market risks, helping you maximize this form of equity compensation.

I’ll also walk you through how RSUs work in a public company and the steps required to meet eligibility through vesting schedules. We’ll explore the difference between ordinary income tax and capital gains tax and when each applies. Additionally, I’ll provide practical recommendations on when to sell your RSUs based on market conditions and your financial goals. Timing is essential to avoid tax pitfalls, and with the right approach, RSUs can become a powerful part of your wealth-building strategy.

Is Roth 401k Really Better Than Traditional for Your Retirement?

In this video, I’ll explain the key differences between a Traditional 401(k) and Roth 401(k)—two popular retirement savings options offered by employers. Understanding how these accounts differ can help you make smarter financial decisions and optimize your retirement savings strategy. Both plans offer tax advantages, but knowing which one suits your situation depends on when you want to benefit from those tax savings—now or later.

The Traditional 401(k) allows you to make pre-tax contributions, reducing your taxable income today. However, withdrawals in retirement will be fully taxed as ordinary income. On the other hand, the Roth 401(k) uses after-tax contributions, meaning you pay taxes upfront. But in retirement, your withdrawals—including any growth—are tax-free. Choosing the right plan can impact your future income, so understanding these distinctions is crucial.

We’ll walk through the tax benefits of both Traditional and Roth 401(k) accounts and help you understand which option might work best for your financial goals. I’ll discuss how contributions are taxed under each plan and explain the impact on your paycheck today vs. income in retirement. You’ll also learn which type of account may be better based on factors like your income bracket, future tax expectations, and retirement timeline. Whether you’re early in your career or close to retirement, I’ll provide quick insights to help you decide the best way to save.

WHAT You Need to Know About RESTRICTED STOCK UNITS EXPLAINED!

Restricted stock units (RSUs) are a common form of compensation offered by employers, especially publicly traded companies. If you’re receiving RSUs as part of your compensation, understanding how they work and how they affect your financial plan is crucial. From taxation to vesting schedules, RSUs come with a unique set of considerations that can influence both your income and investment strategy.

This article breaks down everything you need to know about RSUs, including key terms, tax implications, and strategies for managing this type of compensation effectively.

Continue reading

Maximize Your Social Security Benefit – Explained

Are you starting to receive notices about Social Security and wondering when to file or how much you’ll actually receive? Social Security is a cornerstone of retirement income, but navigating its complexities can be challenging. From understanding how your benefits are calculated to deciding the best time to claim, making informed decisions is essential to maximize what you receive.

This article breaks down everything you need to know about Social Security, including qualification requirements, benefit calculations, key terms, spousal and survivor benefits, and important considerations for filing based on your circumstances.

Continue reading

Can Small Business Owners REALLY Achieve Financial Freedom?

As a small business owner, have you ever wondered, “How much do I need to sell my business for to retire comfortably?” In this video, I’ll guide you through the essential steps to calculate your number—the amount you need from the sale of your business to achieve your retirement dreams.

Planning for retirement as a business owner is different. Unlike traditional employees, your business is likely your largest asset—and your key to financial freedom. But how do you bridge the gap between your business’s current value and your ideal retirement target? That’s exactly what we’ll cover.

I’ll show you how to determine your “number” by considering factors such as your desired lifestyle, anticipated expenses, and current savings. I’ll also discuss strategies to increase your business’s value to close the wealth gap.

Building a strong team of financial advisors, CPAs, and legal experts is critical to navigating the complexities of a business sale and ensuring a smooth transition to retirement.

Whether you’re planning to sell in 2 years or 20, running your business with a buyer’s perspective will ensure you’re ready when the time comes. If you’ve ever felt unsure about whether your retirement goals are achievable, this video will provide clarity and direction.

Are You Making This COSTLY Backdoor Roth Mistake?

If you’re planning a Backdoor Roth IRA conversion, understanding the pro-rata rule is crucial to avoid unexpected tax bills. This often-overlooked rule can significantly impact your retirement strategy, especially if you have pre-tax funds in any of your IRAs.

In this video, I explain the complexities of the pro-rata rule and how it can affect Backdoor Roth conversions. I’ll start with the basics of IRA contributions, breaking down how pre-tax and after-tax contributions differ. Understanding this distinction is key to helping your conversion go smoothly and minimizing additional taxes.

Additionally, I’ll guide you through the mechanics of Backdoor Roth IRAs, a strategy often used by high earners who exceed Roth contribution limits. You’ll learn to move after-tax contributions from a traditional IRA into a Roth IRA while avoiding unnecessary tax liabilities. Keeping track of your contributions and knowing the difference between pre-tax and after-tax funds is essential for creating a tax-efficient retirement strategy.

The pro-rata rule’s impact is also explored, especially how it applies across all your IRAs, even those held at different financial institutions. Using a practical example of $93,000 in pre-tax funds and a $7,000 Roth conversion, I’ll show how the IRS calculates taxable income during conversions. By understanding this rule, you can optimize your IRA transactions and avoid paying taxes on more than you need, helping you reach your retirement goals more efficiently.

The 4 Best Ways to Save for Your Child’s Future: Pros and Cons Explained

In this video, I’m breaking down four popular ways to save for your child’s future—from college savings to long-term investment accounts—and weighing the pros and cons of each. If you’re exploring options for your family, understanding these choices can help you create a plan that aligns with your goals and your child’s needs.

We’ll discuss 529 plans, UTMA accounts, Roth IRAs, and Joint Accounts, covering their unique features and tax benefits, along with any potential drawbacks. From education savings to general-purpose funds, you’ll get a clear picture of which option might work best for your family’s needs.

We’ll explore how a 529 plan can optimize college savings, the flexibility of UTMA accounts, the retirement potential of a Roth IRA for kids, and the simplicity of Joint Accounts. Each has its own purpose and tax implications, so you can make an informed decision about what works best for your family.

4 Savings Options for Your Child’s Future:

529 Plan:
A 529 plan is a tax-advantaged savings account specifically for education expenses, allowing your investments to grow tax-free if used for qualified expenses. This is a great choice for college savings, though it does limit funds to educational purposes, and using funds for non-qualified expenses may incur penalties.

UTMA Account:
A UTMA (Uniform Transfers to Minors Act) account allows you to transfer assets to a child, which they gain control over at a certain age. These accounts offer flexibility in spending, so the funds aren’t restricted to education. However, since it’s in the child’s name, it may impact financial aid eligibility.

Roth IRA:
A Roth IRA for kids allows you to save for their future retirement by contributing earned income to this tax-advantaged account. This is a long-term savings strategy that grows tax-free. While it provides excellent retirement benefits, accessing the funds early may result in taxes and penalties.

Joint Account:
A Joint Account lets you and your child share an account for general savings or future expenses. It’s easy to set up and allows full control, but unlike other accounts, it doesn’t come with specific tax advantages or protections, which may limit its growth potential.

Tax-Efficient Gifting: Strategies to Share Your Wealth with the Next Generation

Are you concerned about your estate being subject to federal estate taxes? Or perhaps you’d like to see your loved ones benefit from your wealth during your lifetime rather than after you’re gone? If so, you’re not alone. Many individuals seek ways to pass wealth efficiently to the next generation while addressing the complexities of estate taxes.

In this article, we’ll explore multiple strategies for transferring wealth in a tax-efficient way. These approaches align with current laws and exemptions and aim to preserve as much of your estate as possible for your beneficiaries.

Continue reading

Cash Crunch? Here Are 4 Tax-Friendly Ways to Get Cash Quickly!

Are you facing a short-term cash crunch and need money without triggering taxable events by liquidating your investments? In this video, I share four practical strategies to generate the funds you need quickly and efficiently, usng the example of making a down payment on a home purchase.

We will walk through the following strategies using an example where Bob and Jennifer are purchasing a $1.5 million home and need $225,000 for their down payment:

→ Home Equity Line of Credit (HELOC): Learn how to leverage the equity in your current home to secure funds for a down payment while keeping your mortgage terms intact.

→ Non-Purpose Margin Loan: Discover how borrowing against your investment portfolio can provide liquidity without triggering taxable events.

→ Intrafamily Loan: If you have a wealthy relative, you can borrow money through a structured family loan with favorable terms, avoiding tax complications.

→ IRA Rollovers: Explore how you can use an IRA for a temporary withdrawal, with the funds rolled back within 60 days, avoiding penalties and tax implications.

These strategies are ideal for those needing cash without disturbing long-term investments or assets. This video will help you understand the advantages and risks of each option.

Setting Financial Goals for the New Year: A Comprehensive Guide

The start of a new year often feels like a clean slate—a perfect opportunity to reflect, recalibrate, and set meaningful goals. While personal resolutions like exercising more or learning a new skill may top your list, prioritizing financial goals can have a transformative impact on your long-term well-being. By setting financial goals in the new year, you can create a roadmap to not only work toward financial security but also build the life you envision. Let’s explore how to approach this critical process with purpose and clarity.

Why Setting Financial Goals in the New Year Matters

Every January offers a unique chance to reassess your financial habits and establish a clear plan for the months ahead. Financial goals serve as guideposts, keeping you focused on what truly matters – whether it’s saving for retirement, reducing debt, or funding a dream vacation. Without defined objectives, it’s easy to drift, letting your money slip away on nonessential expenses. Setting intentional goals helps align your financial decisions with your broader aspirations and values.

Step 1: Reflect on Your Current Financial Situation

Before you set new goals, it’s essential to understand where you currently stand. Take time to:

  • Review Your Net Worth: Subtract your total liabilities (debts) from your total assets (cash, investments, property, etc.).
  • Examine Your Budget: Evaluate your monthly income and expenses to identify areas where you can save or cut back.
  • Analyze Debt Levels: Note outstanding balances on credit cards, loans, or mortgages, and their respective interest rates.

Reflection provides a starting point, giving you the insights needed to craft realistic and achievable financial goals.

Step 2: Define SMART Financial Goals

Goals are more likely to succeed when they’re specific, measurable, achievable, relevant, and time-bound (SMART). Here’s how to apply this framework:

  • Specific: Instead of saying, “I want to save money,” set a clear target like, “I will save $5,000 for a vacation.”
  • Measurable: Quantify progress. For example, save $500 per month for 10 months.
  • Achievable: Make sure your goals align with your income and current obligations.
  • Relevant: Focus on goals that align with your personal and financial priorities.
  • Time-Bound: Set deadlines, such as “Pay off $3,000 in credit card debt by September 2025.”

SEE ALSO: How Risk Management Helps Protect Your Financial Future

Step 3: Categorize Your Goals

To maintain balance, organize your financial goals into short-, medium-, and long-term categories:

  • Short-Term Goals (0-12 Months): Examples include creating an emergency fund, reducing discretionary spending, or paying off a small credit card balance.
  • Medium-Term Goals (1-5 Years): These might involve saving for a down payment on a house, funding a family vacation, or paying off a car loan.
  • Long-Term Goals (5+ Years): Common goals in this category include retirement savings, college funds, or building generational wealth.

Step 4: Create an Actionable Plan

Once your goals are defined, develop a plan to work toward them. Key steps include:

  1. Automate Savings: Set up automatic transfers to savings or investment accounts to build consistency.
  2. Reduce High-Interest Debt: Focus on paying off high-interest debts, such as credit card balances as quickly as possible.
  3. Track Progress: Use apps or spreadsheets to monitor your progress monthly or quarterly.
  4. Adjust as Needed: Life is unpredictable. Be prepared to revise your plan if circumstances change.

Step 5: Stay Motivated and Accountable

Sticking to financial goals can be challenging, especially when faced with unexpected expenses or temptations. Consider these tips:

  • Celebrate Milestones: Reward yourself when you hit a major milestone, such as fully funding your emergency account.
  • Share Goals with a Partner or Friend: Accountability can help you stay committed.
  • Visualize Success: Keep a vision board or other reminders of what you’re working toward.

SEE ALSO: Planning for Early Retirement: Accelerating Savings and Investment Goals

Tools to Help You Succeed

Modern technology offers numerous resources to simplify financial planning. Consider using:

 

  • Budgeting Apps: Tools like Mint or YNAB (You Need a Budget) can help track income and expenses.
  • Retirement Calculators: Online calculators can estimate how much you need to save for retirement.
  • Financial Advisors: A trusted advisor can provide personalized guidance and accountability.

The Bigger Picture: Aligning Goals with Values

Financial goals aren’t just about dollars and cents. They reflect what you value most, whether it’s providing for your family, experiencing the world, or giving back to your community. By aligning your financial strategy with your core values, you can find satisfaction and fulfillment in the process.

A Fresh Start for Your Financial Future

Setting financial goals in the new year is a meaningful way to take control of your future. With thoughtful planning and consistent effort, 2025 can be the year you make strides toward the life you want. Take the first step today—your future self will appreciate it.

At Paces Ferry Wealth Advisors, we can help you turn your goals into actionable strategies tailored to your unique needs. Start the new year with confidence by scheduling a no-obligation discovery call today. Let’s work together to make 2025 your most intentional financial year yet!