Author: Richard Archer

Buy or Rent in Austin? 5 Reasons Why Renting Wins For Tech Professionals

Posted on December 15, 2020 by - Smart Money Tips

It’s hard to deny it: Austin is an awesome place to call Home, Sweet Home. 🏠 But if you’re contemplating whether to buy or rent in Austin, is it the smartest move to buy a House, Sweet House?

Maybe you’ve just come from selling a house in Cali. It only makes sense to use that money to buy a new house in Austin, right? After all, costs seem low in comparison. The Austin housing market is booming, and real estate here is looking mighty nice right now.

I’m here to advise you to slow your roll. For many people—tech professionals in particular—renting in Austin may be the way to go.

Buy or rent in Austin? Why? Most of the reasons on this list relate to one simple equation:

More Cash = More Freedom

We’ll dig into that in more detail. First, let’s look at some pitfalls to homeownership that sometimes get neglected…

Surprise! House Costs Will Surprise You

Buying a house saddles you with much more than a monthly mortgage. There’s property taxes and insurance premiums, and either could go up at any time. There’s furnishing, maintenance and upkeep.And then… there’s the unpredictable.                                                                                                                                                                                              

No matter how ready you think you are, when you face something like tree roots bursting into your sewer line… That literally stinks. And it’s a drain—the financial, physical, and mental kind—you don’t need.

Here are some other eye-opening numbers for you: Research by Zillow and Thumbtack found the average U.S. house faced about $9,400 in hidden costs per year. 

                                                                      For houses in Austin, that number is $12,457.

$9,727 in “necessary” costs (taxes, insurance, and utility bills) plus $2,730 in maintenance costs. That’s the 9th highest of all cities in the study. (1)  

Buy or rent in Austin? Meanwhile, monthly rents in Austin haven’t risen as sharply as real estate prices have. You can get a lot more house for your money by renting, and you know how much you’ll be paying throughout the year.

Plus, being able to call a landlord to take care of that plumbing disaster? Priceless.

Renting Leaves You More Cash for More Flexibility

Now let’s talk cash. 💸 Namely, how much more of it you’ll have if you don’t throw it into a down payment for real estate. If you’re considering whether to buy or rent in Austin, this could be a key factor.

In the tech world, some of the most exciting jobs are in startups. Maybe that’s what brought you to Austin. A hot new business that’s primed to explode, but you have to take a major salary cut now to get in on it. If you’re counting on that cash for buying a house, you might not be able to afford to take a hit now for the prospect of a big payout down the line.

But if you rent and save that cash, you’ll not only be in a better position to take the equity. You’ll also have the flexibility to be more strategic and profitable with what you do with it.

Here’s one example: If you’ve received stock grants, a Section 83(b) election lets you pay taxes on them now, when the stock is granted to you, rather than years later when the stock is vested—and potentially worth a lot more. Renting can provide you the liquidity needed to take advantage of such opportunities, adding to the reasons to rent rather than buy in Austin.

(For details, read my post going into all the nitty-gritty of a Section 83(b) election.)

Houses Have Gravity

One thing I’ve learned about tech professionals is they love a challenge. New problems to solve, new mountains to climb. Bring it on.

But that also means you might be drawn to what seems like a dream job at first, only to start feeling bored when things get stale or easy or repetitive. That can mean more job changes—and location changes—than other professions.

And that’s fine! I won’t be offended if you have to leave this great city. I support you in your next challenge. 🙌

But if your new dream job calls out to you from San Fran or Seattle or New York or wherever and you already have a house here in Austin, you may find that house holding you back. It becomes an albatross around your neck, one so big it has its own gravitational pull, keeping you from launching off to the job you really want.

And let’s keep it real: the tech industry can be brutal. Big company-wide layoffs can send you into an escape pod whether you’re ready to leave or not. Having a cash cushion available by not putting it into a house can make a huge difference in easing the stress. This is another reason why many tech professionals consider the buy or rent in Austin question and often lean towards renting.

More Freedom for Journeying and Learning

The sky’s the limit on what you can do with the extra cash and extra freedom that comes with renting. That’s the best part about freedom!

But here are a couple ways that renting may offer an extra-enticing advantage. One is if you want to literally take to the skies! ✈️

Whether it’s to visit family or just explore the wild world out there, many of the tech professionals I work with love to have a large travel budget! Instead of putting a whole bunch of cash into one very stationary house, you can spend it on roaming the world as you wish.

Plus, you won’t have to worry about what might be happening to your house or yard or plumbing while you’re away.

You Don’t Know How Your Kid Will Grow Up Yet

Not being tied down by a house also gives you valuable freedom in terms of education for your kids. If you’re new to Austin, you might not know where you to settle based on your family’s educational priorities. You might not know what schools offer or where their district boundaries are.

And you probably can’t predict what your kids will be like in the future, either. Will they show a knack for certain subjects, interest in certain careers, or talent in certain lucrative sports?

You may end up wanting to move to a different school system that has the programs and opportunities to best help your future superstars thrive. 📚 If your family is renting, both the decision and the move itself will be much easier on you. This flexibility is a major factor when deciding to buy or rent in Austin, especially for families.

So… What’s Your Next Move?

Has this helped open your mind to renting instead of buying a house in Austin? That’s just the start. There are a lot of factors to consider, a lot of specific financial strategies that may help in your situation.

Or maybe you’re a tech professional that these reasons don’t apply to. Or maybe you’re not in the tech industry at all, but still find yourself thinking, “I need to start getting my financial life in order and have a second opinion on important decisions like this!”

That’s what we’re here for. Whether you rent or buy, we’re here to help you make the best call for you and your family in all of your financial choices. Schedule a call.

Need a Financial Planner?

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to professionals with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn, Facebook, Twitter or visit www.archerim.com.

Buying A House In Austin? Here’s How Much You Can Afford

Posted on December 15, 2020 by - Smart Money Tips

buying a house in Austin

Austin is the cool place to be these days, but the housing market in “the music capital of the world” is triple digits H-O-T!

But stay tuned… because we are going to share some smart ways to calculate “‘how much house can I afford in an in-demand city like Austin?” 🤔

BUT FIRST… A FEW FACTS ABOUT OUR IN-DEMAND MARKET 🔥

Home prices in Austin have spiked nearly 10% in the last year. It’s getting expensive for those who want to put down roots and get their own piece of Austin real estate.

The average home value right now in Austin is just over $360,000, and the median listing price is $379,000. (1)

With our market as hot as it is, it is more important than ever to have a solid grasp of how much house you can really afford before you sign on the dotted line.

Ten years ago we saw what happens when too many people get caught up in the rush and end up in over their heads. 👎🏻

WHY ONLINE CALCULATORS DON’T SHOW THE WHOLE PICTURE 🙈

So, how do you know how much you can really afford in our incredible city? Some people think using an online calculator is a great way to crunch the numbers.

However, a calculator in and of itself is not sufficient. A calculator’s purpose is to determine “how much of a mortgage you may be able to obtain.” But just because a lender is willing to give you a mortgage doesn’t necessarily mean you can afford it or you should get it.

There are a few other critical goals and lifestyle items to consider first…

WHAT ELSE DO YOU WANT BESIDES A HOUSE?

Just because you can technically “afford” a mortgage payment doesn’t mean it’s the best choice for you right now. It’s important to take long-term goals into consideration. Taking on too hefty of a mortgage will limit funds for your other goals, making them harder to achieve.

Do you want your children in a private school? That will reduce how much money you have to put toward a house payment on a monthly basis.

Do you want to retire early or travel often? An online calculator doesn’t know that. Using an online calculator to determine the mortgage size to take on could make it challenging for you to fulfill your dream of becoming financially independent or seeing the world.

While the online calculator is a good starting point, it is an oversimplification. It’s important to look at the big picture of your life to see how owning a home fits into your other goals and priorities.

ARE YOU REALLY SURE YOU WANT TO BUY? 🏠

Owning a home is an important milestone in our American culture. How important is it to you personally, though?

Many young people purchase homes because that’s what’s supposed to come next after starting a real job and getting married, and before the kids start coming. Too many people purchase a home on autopilot and don’t take the time to even consider if it’s what they really want in life.

FINANCIAL COSTS

Contrary to popular belief, owning a home isn’t right for everyone. It isn’t always a good financial move. There are so many expenses that come up when owning a home it’s impossible to list them all.

It goes all the way from big-ticket items like HVAC and a new roof to little things like backflow testing, shower curtains, and tree trimming. Do you know how much it costs to replace outdated brass faucets?

If you look at Zillow’s website, it will tell you that the mortgage for a $375,000 house would be about $1,463 a month. (2) You look at that number, see the picture of the pretty house with all of its curb appeal, and think, “That’s cheaper than my rent. I’m in!”

But that number doesn’t include taxes. And it doesn’t include insurance. It doesn’t include the HOA. Or any of the myriad of expenses mentioned above. Once all of the expenses are laid bare, many people decide that it just makes more financial sense to rent rather than buy.  

LIFESTYLE COSTS

Even if you have the money, owning a home might not fit your lifestyle. Are you sure you want to stay in Austin long term? If you change your mind, it’s much easier (and cheaper!) to pick up and leave if you rent instead of own a home. Homeownership serves as an anchor that many people appreciate while others loathe.

Even if the nomadic lifestyle holds no appeal for you, you may not want to be anchored quite yet. If you’re still building your career, being anchored to a house could keep you from pursuing a promising job opportunity elsewhere.

What happens when you have kids? Will you want to be closer to the grandparents (and free babysitting)? Are you satisfied with the schools in your neighborhood, or will you want to move to a better district? If that’s too far in the future, you may not be ready to make a commitment yet.

YOU DON’T HAVE TO FIGURE THIS OUT ALONE  🙌🏻

When you own a home or are thinking about purchasing one, it’s challenging to anticipate all of the different expenses that will crop up or the different factors that need to be taken into consideration.

You simply don’t know what you don’t know.

I love to come alongside people who are right in your position and give them a leg up. I understand the stress and anxiety that you are facing as you approach making the biggest purchase of your life. It can be daunting.

But, it doesn’t have to be. Partnering with an experienced financial professional can help lift the burden from your shoulders and help lower your stress knowing you are making the right choices for YOUR life and values.

If you’re considering buying a house in Austin, give me a call first.

We can review your goals and priorities, see how home ownership may fit in, and find a price point that will make ALL your dreams possible, not just home ownership!

Schedule a 45-Minute Introductory Call with Me

Need a Financial Planner?

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to executives with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

5 Questions To Ask Your Financial Planner (And You’re Not Asking Them)

Posted on December 15, 2020 by - Smart Money Tips

piggy bank

In this age of information overload, there’s no lack of answers to our burning financial questions. But finding the answers that will optimize our financial lives isn’t just about muddling through articles and news reports; it’s about asking the right questions of the right person. Knowing which questions to ask your financial planner can make all the difference.

Here are 5 questions you should be asking your financial planner:

How do I plan for my children’s college education without breaking the bank?

Have you looked at college costs lately?

You’re looking at $187,800 for four years at a private college. But with college costs estimated to rise 5% per year, in five years, that amount increases to $239,685—almost $60,000 a year! (1)

You have a better choice if you act now.

Start using the power of compound interest to your advantage… now!

Think of it this way…

You have the choice of saving NOW and earning interest or borrowing LATER and paying interest.

Here’s a sneak peek at the power of compound interest in action:

If you invest $4,000 in a market earning an average return of 7%, it would be worth $7,869 in 10 years.

If you saved $4,000 annually for 10 years at this return, your college fund would have $59,134!

There are multiple ways you can save for this significant investment, with 529 tax-advantaged college plans being the most popular. They offer a unique combination of features that no other college savings vehicle can match.

If your kids are heading to college within the next few years, don’t panic about the amount in your savings accounts. There are tried-and-true ways to maximize your financial aid potential and minimize your child’s student debt load. Check those out here and here!

Bottom line: College planning should be a part of your overall financial plan. Cover your bases by talking to your financial planner and getting advice tailored to your situation. Asking about this is one of the critical questions to ask your financial planner.

I want to buy a house. How much can I afford?

We often rely on our financial planners to help us get to retirement, but they also offer valuable advice and experience that can help us with everyday decisions, like buying a house!

If you are not asking a financial planner about how much house you can afford when buying, YOU SHOULD BE! (We can help!)

You could use an online calculator to get an idea of how much you may be able to spend, however an online calculator does not take into account what your other goals are outside of owning a house!

Goals like:

  • Do you want to travel?
  • Retire early?
  • Be financially independent?
  • Fully fund your children’s education?

All of these factors impact how much of your monthly income you can spend on housing costs. A financial planner will be able to look at your big picture and goals and give you a realistic number that will make sure you have money left over for the other dreams you want to finance in your life.

Also, here’s something a smart financial planner may help you see…

Maybe buying a home isn’t the best idea for you.

Renting sometimes gets a bad rap, but it helps you avoid a lot of extra expenses that could affect how much money you can put toward achieving other goals. As home prices rise in many U.S. markets, renting gives you  predictable expenses and allows more flexibility if you decide to move or if an enticing job offer comes your way.

Should I combine accounts with my spouse?

If you Google this question, you’re going to get a lot of divided answers. There are some people who are happier having separate accounts, and others who prefer the simplicity of joint accounts.

Joint accounts offer convenience and help both parties stay on top of their finances while also preventing legal headaches in the case of a death.

On the other hand, separate accounts give each spouse freedom over how they spend their money. If one or both spouses entered the relationship with debt or unequal accounts, staying separate can avoid resentment in the spouse who has to take on this extra responsibility. And, of course, if the relationship ends, separate accounts are just easier to deal with.

Hiring a quality financial planner can help you answer complicated questions like this.

Your financial planner will know YOU and your life circumstances enough to be able to give you objective guidance that is in your best interest. Unfortunately, most internet searches cannot take your unique circumstances into account.

Financial planners are here to help you with the big and the little, so don’t be afraid to ask any questions to ask your financial planner, even if they seem mundane and simple.

How much do I need to retire?

This is a big one, and probably at the top of your mind.

There’s a lot of conventional wisdom out there, like saving $1 million or building a nest egg that equals 10 times your current income, but the ideal retirement number is going to be different for everyone.

Here are some factors to consider when determining how much savings is right for you.

First, you’ll need to examine your living expenses and think about what you want your retirement lifestyle to look like.

You will also need to consider your longevity risk—how long you will live and how much your health and long-term care expenses may be affected by your life expectancy.

Even though the current life expectancy for men is 84.3 and 86.7 for women, (2) there is a 43% chance that individuals who are 65 today could live till 95. (3) Your savings needs to last as long as you do.

If you ask a financial planner this particular question, they will look into every area of your life, factor in all the details, and project multiple scenarios to prepare you for this milestone.

You don’t need to crunch numbers alone. Having a financial expert by your side can help make the process less stressful and more reassuring.

What could happen to my investments if the market crashes?

Everyone was happy in 2017 when their portfolios were drastically rising and the markets were hitting record highs on the regular.

But when the markets decline… we find out if our investments are allocated properly.

Everyone has their own unique risk number, based on their tolerance for risk and their time horizon. At Archer Investment Management, we walk our clients through an exercise that helps us identify their risk number and create a portfolio that aligns with their risk tolerance.

Based on your risk number, we can project your expected annual return on your investments and explore how much your portfolio might fall in different market scenarios.

You don’t have to wonder or worry about what could happen if the market crashes. We can’t predict perfectly, but we can give you a ballpark idea based on what’s happened in the past.

Setting clear expectations before investing is crucial to staying the course when challenges arise.

Still have questions?

If there’s one thing that’s guaranteed, it’s that you will have plenty of financial questions and concerns as you move through life.

At Archer Investment Management, we want to be an objective resource for you as you seek to make the best financial decisions possible.

We invite you to find out how we can help by scheduling a quick call with us to see if we are the right fit!

Need a Financial Planner?

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to executives with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

___________

(1) https://www.northwesternmutual.com/life-and-money/how-much-college-will-cost-in-5-10-and-15-years/

(2) https://www.ssa.gov/planners/lifeexpectancy.html

(3) https://www.aarp.org/work/retirement-planning/info-2015/nest-egg-retirement-amount.html#quest1

How To Reduce Your Tax Bill on Company Stock: One Simple Tip

Posted on December 15, 2020 by - Investment

You have company stock. That’s great! But just like any other financial asset, how you use it makes all the difference. Between the different types of company stock, vesting schedules, and portfolio allocation, there are many financial planning considerations to be aware of. Understanding how to reduce your tax bill on these assets can significantly enhance your financial outcome.

On top of all that, we can’t forget about taxes. Knowing how to reduce your tax bill effectively can lead to substantial savings. Whether it’s using a Section 83(b) election or watching your tax rates, there are a few taxation strategies you can use to maximize your employee stock options.

Here’s one more to add to your arsenal:

Net Unrealized Appreciation: A Key Tax Strategy

Have you heard of net unrealized appreciation (NUA)? You most likely haven’t, but it can make a significant difference when it comes to how to reduce your tax bill on your 401(k) distributions. This lesser-known strategy is a powerful tool when considering how to reduce your tax bill.

Simply put, NUA is the difference between the price of the stock when you got it and what it’s worth today. Using this approach can be a game-changer when it comes to how to reduce your tax bill.

How It Works to Reduce Your Tax Bill

You have a workplace retirement plan with a sizable amount of company stock. If you roll your 401(k) into an IRA, your stock appreciation will be taxed at ordinary income tax rates when you take a distribution. Those tax rates can be as high as 37%.

To learn how to reduce your tax bill, NUA to the rescue! This strategy allows company stock from a 401(k) to be split off from your other savings and rolled over to a taxable account so you can take advantage of capital gains taxes, which currently top out at 20%.

Do the Math to See Tax Savings

Want to see some numbers? Understanding the figures can clarify how to reduce your tax bill effectively.

Let’s imagine you have company stock with a cost basis of $100,000. After many years, that stock is now worth $400,000. Your NUA is $300,000. If you go the traditional route of rolling that $400,000 to an IRA and your tax rate is 37%, you will owe a whopping $148,000.

But if you use the NUA strategy and move the shares to a taxable account, you would pay income tax on the cost basis in the year you made the rollover, coming out to $37,000. If you then sold the shares and paid the 20% capital gains rate, you would owe another $60,000 on the NUA amount of $300,000 for a total of $97,000. That’s a tax savings of $51,000! How to reduce your tax bill is clear with strategies like NUA.

Is NUA Right For You?

Considering how to reduce your tax bill with the NUA strategy? If any of these situations apply to you, you are eligible:

  • You are leaving or have left the employer you received your stock from.
  • You are 59½ and your plan allows in-service distributions from your retirement plan.
  • You have suffered a disability.
  • You are a family member of someone with company stock who has passed away.

Beyond eligibility requirements, you will want to run some numbers based on your unique financial circumstances. Look at how much your stock has appreciated, what your current income tax bracket is, and if you can afford to pay income taxes on the cost basis of your stocks upfront. This planning is essential for anyone exploring how to reduce their tax bill effectively.

We Can Help You Reduce Your Tax Bill

NUA, along with other tax minimization strategies, has many ins and outs, and its success will depend on your situation and executing the transfer and sale properly. Learning how to reduce your tax bill through such strategies can provide significant financial benefits.

We are here to help you understand the net unrealized appreciation strategy and all the other aspects of financial planning for tech executives or those with company stock. Let us assist you in mastering how to reduce your tax bill effectively.

Schedule a quick call with us and see if we can help you make the most of your stock benefits.

Need a Financial Planner?

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to executives with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

10 Ways Stock Compensation Can Make You Happier

Posted on December 15, 2020 by - Investment

Everyone wants to be happier. Just look at the books lining the shelves at your local bookstore. You’ll see everything from The Happiness Project to The How of Happiness to Hardwiring Happiness.

While many people believe that their happiness will increase when they have more money, few people connect their employee stock compensation to happiness. However, understanding how stock compensation can impact your life is crucial.

Thanks to mystockoptions.com, we can see how stock compensation, if fully appreciated and understood, can improve your happiness.

Wealth Creation

When your company’s stock price goes up, your wealth increases, and increased wealth can improve your quality of life. But it’s about more than the number in your bank account, it’s about what you do with it.

If you use your increased wealth to fund your passions, pursue your dreams, and invest in others, it can improve your well-being and put you on the path toward greater happiness. Stock compensation is a powerful tool for wealth creation, directly impacting your financial stability.

Anticipating the Future

Sometimes planning for a trip or a big event is half the fun, as the sense of anticipation builds excitement.

The money you accumulate from your company’s stock plan can give you that same sense of anticipation as you plan how you will use the money and the difference it will make in your future.  

A Feeling of Being Special

Not everyone receives company stock. If you receive regular stock grants, that’s a benefit that should make you feel special. You can further your happiness by increasing your gratitude, appreciation, and enthusiasm about this benefit.

Receiving stock compensation often means being recognized for your contributions and feeling valued within your company.

Discount and Deals

Getting something valuable at a discount often conjures up feelings of pride and euphoria. If you are part of an employee stock purchase plan (ESPP) and have access to a discounted purchase price, you can experience those same emotions with your stock.

Stock compensation through ESPPs allows you to purchase stock at a discount, maximizing your financial benefits.

Control Over Taxes

While taxes are a necessary evil, stock options can give you the opportunity to delay an increase in income taxes. Managing the taxation of stock compensation is key to maximizing the benefits of your stock options.

Whether you receive a grant of stock options or stock appreciation rights or you’ve enrolled in an ESPP, you may be able to decide when to receive the income and pay taxes on it. Having control over something that you normally can’t control can make you feel empowered.

Donations And Gifts Of Company Stock

Studies have shown that generosity increases happiness. (1) To capture some of that happiness, consider donating appreciated company stock that you’ve held long-term.

This type of gift can make a significant difference for the organizations you support. As an added benefit, stock donations can also meaningfully lower your expected taxes. Using stock compensation for charitable contributions can enhance your sense of fulfillment and reduce your tax burden.

A Sense of Ownership

When you own company stock, you essentially own a piece of your company. Your ownership can make you happier since you share in the success the company gains from your work. Ownership gives you a sense of pride and control and possibly even some influence and input into your company’s operations.

Since we spend so much of our lives working, the ensuing happiness you feel from ownership at work will play a big role in your happiness in other areas of your life. Stock compensation fosters a sense of ownership, aligning your success with your company’s growth.

Stronger Relationships

Strong relationships make us healthier and happier, (8) and while it may seem odd to link stock compensation with relationships, the conversations you have with your colleagues about how to handle stocks and how you’ll use the gains can improve your friendships.

But be sure to turn to a professional as well. Your coworkers might be knowledgeable and well-meaning, but their advice and enthusiasm could lead to unnecessary risks, such as overconcentration in stock. The results of risky behavior often cause more stress than happiness. Discussing stock compensation with trusted financial advisors ensures that you manage it wisely and avoid potential pitfalls.

Financial Security

Imagine that you don’t have to worry about money anymore, that your finances are secure and the future is funded. That picture of financial security probably brings excitement and happiness.

stock compensationYour stock compensation can help you on the journey to financial security by bridging the gap between your Social Security benefits and other retirement accounts, thereby minimizing your stress and worry and increasing your confidence. Stock compensation can play a crucial role in achieving long-term financial security, providing a stable foundation for your retirement.

Mindfulness And Meaningfulness

It’s all too easy to get caught up in the daily minutiae of work, but keep a mindful perspective by remembering that your hard work can make a difference in elevating your company’s stock price.

This attitude increases ownership, engagement, optimism, and happiness by making your job even more meaningful and motivating you to reach new levels of personal and professional success. Understanding the impact of stock compensation on your overall well-being encourages a more mindful and fulfilling approach to your career.

Is Your Stock Making You Happier?

If you have company stock and aren’t experiencing the added happiness it can bring, Archer Investment Management can help you optimize your finances so that your stock options bring you more joy. Effective management of your stock compensation can significantly enhance your overall happiness and financial success.

Schedule a quick call with us and see if we can help you make the most of your stock benefits.

Need a Financial Planner?

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to executives with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

___________

(1) http://time.com/4857777/generosity-happiness-brain/

(2) Relationships and Health

Taxation of Stock Grants: One Tip To Curb Your Tax Bill

Posted on December 15, 2020 by - Investment

Got stock grants?

If you’re like other tech executives, you probably have your fair share of stock grants. Equity incentives are very popular these days but can be confusing—especially from a tax standpoint. Understanding the taxation of stock grants is crucial for managing your financial strategy effectively.

There are different kinds, various ways of taxing them, and even some little-known opportunities for minimizing taxes.

What Is A Section 83(b) Election?

Never heard of a Section 83(b) election?

You’re in good company; hardly anyone else has either!

However, it’s something that could potentially save you a lot of money on taxes, so you should be aware of it. In the context of taxation of stock grants, a Section 83(b) election can be a powerful tool.

Equity grants are considered taxable compensation, and a Section 83(b) election tells the IRS that you want to report income tax the year your stock is granted instead of waiting until it vests.

Normally, you don’t pay taxes until the stock vests and you actually take ownership of it. With an 83(b) election, you choose to pay taxes on the stock before it actually becomes yours.

The Risks & Rewards Of A Section 83(b) Election

Why would you choose to pay taxes on something that’s not actually yours yet? Because the tax bill might be a lot lower then!

The taxation of stock grants depends heavily on the fair market value of the stock. The taxes you pay are based on the fair market value of the stock.

When you are granted stock that doesn’t vest for 3 years, there is a good chance the price of the stock will increase during those 3 years.

The 83(b) election allows you to calculate your tax bill based on the lower stock price on the grant date rather than the higher price at vesting. The higher vesting price could also push you up into the next, higher tax bracket. In fact, tax rates could increase during those 3 years and you would end up paying a higher rate overall.

So, why wouldn’t you choose this option?

Well, there are a number of risks involved.

First of all, the taxes you pay are not refundable. If you leave your company before the stock vests, you will have paid taxes on stocks that you never received. A Section 83(b) election is nearly impossible to rescind or cancel once made. If you pay taxes early, you risk paying taxes that you will never actually owe.

Also, the stock price could go down between the grant and vesting date, which leaves you paying more taxes than you would have if you had waited.

Another risk is that the tax rates will go down, as they did with the Tax Cuts & Jobs Act. If you are married with a taxable income of $300,000, you would have gone from the 33% tax bracket in 2017 down to 24% for 2018.

That’s a big difference.

How A Section 83(b) Election Works

To make a Section 83(b) election, you have to contact your local IRS office within 30 days of the grant date. This is a critical step in managing the taxation of stock grants effectively.

Also, you will need to have enough cash up front to pay the taxes, since the stock is not yet yours to sell. Let’s take a look at how a Section 83(b) election would play out in real life.

Let’s say you are granted 3,000 shares when they are worth $15 each and you are in the 32% tax bracket. The shares vest after 3 years when they are worth $50, at which point you sell them with a capital gains rate of 18.8% (including the Medicare surtax).

This is what you would end up paying in taxes for each option:

With Section 83(b) ElectionWithout Section 83(b) Election
Income Taxes Due At Grant$14,400$0
Income Taxes Due Year 3$0$48,000
Capital Gains Taxes Due$19,740$0
Total Taxes Paid$34,140$48,000

This example results in a $13,860 tax savings with the Section 83(B) election.

If the income from the grant pushed you into a higher tax bracket, the savings would be even greater!

As you can see, an 83(b) election has the potential to save you a lot of money in taxes.

However, it is not without its risks.

Next Steps…

You don’t have to weigh the reward and risks of an 83(b) by yourself!

We are here to help you understand an 83(b) election and all the other aspects of financial planning for tech executives.

Discussing the taxation of stock grants and understanding how to manage it can save you substantial amounts in taxes. It is important to make an educated decision before the IRS window closes. You only have 30 days once the stock has been granted.

Schedule a quick call with Richard, at Archer Investment Management to discuss the pros and cons of making an 83(b) election for yourself.

You’ve got more to tackle on your to-do list than worry about how to make smart decisions with your money.

At Archer, we make managing your money easy, so you can get back to your life.

Not a tech executive? That’s okay! We can help you too.

Schedule a quick call with us and see if we can help simplify your finances.

Need a Financial Planner?

ABOUT RICHARD

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to executives with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

10 Simple Tips to Maximize Your Restricted Stock

Posted on December 15, 2020 by - Investment

maximize restricted stock units (RSUs)

Credit should be given to Mystockoptions.com for some of the excellent content in this article.

Incorporating restricted stock and RSUs (restricted stock units) into your financial plan can get complicated. You will need to make plenty of decisions, such as how long you will hold your shares, if you should sell them and put them into an alternative investment, or if you will use the money to meet one of your financial goals. If your head is spinning, take heart. Here are 10 simple tips to help you maximize your restricted stock and RSUs.

RULE NO. 1: SET GOALS

In order to make the wise decisions, you need to determine what you hope your stock will do for you. When you eventually sell the shares, where do you want that money to go? How do your shares and their potential sale fit in relation to your other income, 401(k), and other savings?

RULE NO. 2: KNOW YOUR VESTING SCHEDULE

It is essential to know the dates your grants will vest since you will need to pay taxes on the resulting income. If you want to avoid a hefty tax bill, it requires some forethought.  Your vesting schedule will depend on your company and the conditions they place on the stock, but it is usually time-based, requiring you to work at the company for a certain period before vesting can occur.

RULE NO. 3: UNDERSTAND THE CONSEQUENCES IF YOU WERE TO QUIT

If you leave your company before your restricted stock vests, you will usually forfeit the unvested grants. There can be exceptions to this, so be sure to gather all the details from your company before you make the decision to leave. If you have a significant amount of shares that haven’t vested, it might be worth it to stay with your company long enough to benefit from this reward for your service.  

RULE NO. 4: CONSIDER TAXES

Your taxable income will be the market value of the shares at vesting and is subject to federal income tax, Social Security, and Medicare, plus any state and local tax. Your company may offer you a few ways to pay taxes at vesting, such as withholding shares for taxes, a sell-to-cover transaction for taxes of a portion of the shares, a salary deduction, or simply a check payment.  When you eventually sell the shares, you will pay capital gains tax on any appreciation over the market price of the shares on the vesting date.

RULE NO. 5: LOOK INTO AN 83(B) ELECTION

With restricted stock (not RSUs), you have the option to make a Section 83(b) election with the IRS within 30 days of the grant date. An 83(b) election allows you to pay taxes on the value of the stock at grant date rather than vesting date. If you believe the stock price will be higher on the vesting date and you are confident you will meet vesting requirements, this can be a beneficial move for you. Also, moving the time of taxation to the grant date starts the capital gains holding period earlier, which can make a difference at the eventual sale of the shares.

RULE NO. 6: WATCH YOUR TAX RATES

Be sure to anticipate what restricted stock and RSUs will do to your tax rates when you vest.

The extra income could push your income into a higher tax bracket, raise your rate of capital gains tax, and trigger extra Medicare taxes, possibly costing you thousands of dollars. If you plan ahead, you can implement strategies that could keep you in the lower tax brackets.

RULE NO. 7: DECIDE WHETHER TO HOLD OR SELL

Whether or not you sell your shares at vesting will depend on multiple factors, such as tax planning, financial planning goals, and company restrictions.  If you sell immediately, you can use the shares to pay for the taxes incurred at vesting. If you hold your shares, your capital gains tax will be affected when you sell in the future. Your decision may be influenced by your cash needs, upcoming life events, and other financial planning factors, including diversification, dividends paid on your stock, and alternative investments.  If your company is publicly traded, there can be blackout dates that prevent you from trading and stock ownership guidelines that require you to keep a certain amount of stock. With private companies, there are probably restrictions in your grant or SEC rules that will impact when you can sell.

RULE NO. 8: REMEMBER DIVIDENDS

Even though you can’t transfer or sell restricted stock until it vests, the stock is still issued to you and in your name, which means you could receive dividends. If you have unvested RSUs, this does not apply. But when a company pays dividends on outstanding shares of stock, it can choose to pay dividend equivalents on RSUs. These may be deferred or accrued to additional units and then settled when the unit vests.

RULE NO. 9: DON’T LET COMPANY STOCK SKEW YOUR PORTFOLIO

It’s a cliché, but when it comes to your portfolio, you don’t want to keep all of your eggs in one basket. You don’t want too much of your net worth tied up in your company stock, and since restricted stock and RSUs vest over time, it’s easy to miscalculate how much of your portfolio is reliant on the success of your company. In order to avoid overconcentration, work with a professional to determine how much your holdings in company stock contribute to your overall net worth.

RULE NO. 10: RELY ON A PROFESSIONAL

This stuff is complicated. Sound financial planning, investing, and tax management require specialized knowledge, skills, and experience. At Archer Investment Management, we specialize in serving tech executives with their financial planning needs. We understand your needs and complexities and are here to make sure your financial plan is airtight. If you have ESOs, restricted stock, or RSUs, don’t hesitate to reach out to us to help you maximize restricted stock units (RSUs) and incorporate them into your overall financial picture. Maximize restricted stock units (RSUs) to optimize your financial outcomes. Click here to schedule a phone call today!

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care and attention to technology executives. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

What Spredfast Employees Need to Know About Employee Stock Options

Posted on December 15, 2020 by - Investment

As you have heard, Spredfast has announced a merger with Lithium Technologies. (1) When companies undergo a change this significant, there are often ripple effects that impact those who work for the company. In this case, you may have a large sum of Spredfast options coming due this year.  Do you know what to do? What do you need to know about your employee stock options?

WHAT ARE EMPLOYEE STOCK OPTIONS?

ESOs offer the holder the right to buy a certain amount of company shares at a predetermined price for a specified period of time. Employees are given a share in the potential growth of their company’s value without actually risking their own money, until they decide to exercise those options and purchase shares of the company’s stock.

HOW DO EMPLOYEE STOCK OPTIONS WORK?

Let’s say you work for Company XYZ, and they have issued employee stock options to you at $50. In this scenario, you would have the right to purchase 1,000 shares of XYZ stock at $50 (the grant price) after three years (the vesting period) and within ten years (the expiration date) of the grant date.

Taking the example above, what happens if, after four years, the market price of XYZ is at $100? In this case, you can purchase 1,000 shares at $50, then sell them at the $100 market price, pocketing a $50,000 profit!

But what if, after four years, the market price of XYZ is at $25? At this point, you would not have to buy the shares at a loss. Instead, you can wait until the 10-year expiration date for the stock price to potentially surpass the grant price.

WHAT ARE THE DIFFERENT TYPES OF EMPLOYEE STOCK OPTIONS?

There are two types of ESOs that a company can grant: Non-qualified Stock Options (NSOs) and Incentive Stock Options (ISOs). NSOs are the most common type offered by employers.

Non-qualified stock options do not qualify for special tax treatment and result in additional taxable income to the recipient at the time that they are exercised, the taxable amount being the difference between the grant price and the market value on that date. In addition, when NSOs are exercised, income, Social Security, and Medicare taxes will be withheld.

In contrast, incentive stock options qualify for special tax treatment and are not subject to Social Security or Medicare withholding taxes.

WHAT IS THE TAX TREATMENT OF EMPLOYEE STOCK OPTIONS?

As discussed above, it is clear that NSOs and ISOs are treated differently when it comes to taxation. However, for both types, the grant of the option itself is never considered a taxable event.

For NSOs, taxation begins at the time that the option is exercised. Once exercised, the purchase of discounted stock is considered compensation and is taxed at ordinary income tax rates. When those purchased shares are sold, either short-term or long-term capital gains taxes may be owed. With short-term capital gains, the employee would be subject to tax at their ordinary income tax rates. With long-term capital gains, the tax would be significantly reduced.

Gains on ISOs are not subject to payroll taxes. However, ISOs are a preference item for the alternative minimum tax (AMT) calculation. Also, if you exercise and sell the stock within a year, you will pay ordinary income tax on the difference between the market price at sale and the grant price, much like the treatment of NSOs.

When you exercise the ISO but hold the stock, tax treatment can get quite complicated. In this situation, the difference between the grant price and the market price then becomes an AMT preference item, so exercising ISOs might mean you’ll pay the AMT. If you hold the shares for one year from exercise date (and two years from the grant date of the option), the difference between grant price and market price when you sell the option is taxed as lower long-term gains rather than ordinary income.

HOW SHOULD EMPLOYEE STOCK OPTIONS FIT INTO YOUR FINANCIAL PLAN?

It is important to think of your ESOs in the context of your overall financial plan. First and foremost, your financial plan should be based on clearly defined goals for yourself and your family. Once you have your goals set, how can ESOs best help you reach them? This is never an easy question to answer, but the more you understand about the ESOs at your company and their future growth potential and taxation, the better off you will be.

As you make your decision on whether or not to accept Spredfast’s offer of an ESO buyout, it’s critical to take all aspects of taxation, income, and your financial plan into consideration. At Archer Investment Management, we specialize in helping corporate executives make the most of their complex benefits. We’d love to help you with this important decision. Download our StockOpter® Stock Compensation Summary Analysis report, check out our case studies to see how we’ve helped clients like you, and schedule a phone call today!

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive financial planning and investment guidance and personalized care to executives in technology firms. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

_____________

Six Financial Planning Rules That Everyone With Stock Options Needs To Know

Posted on May 1, 2017 by - Smart Money Tips

If you work for a company that offers Employee Stock Options (ESOs), you may be wondering how you should take advantage of them and whether they can help you reach your financial goals. In a previous article, we walked you through an overview of Employee Stock Options, but even if you understand how they work, you might not know how to maximize their value and how they fit into your financial plan. Here are six financial planning principles that may help you make the best decisions for your financial situation.

RULE #1: SET REALISTIC GOALS

Before you dig into the investments in your portfolio, take the time to set realistic goals for your overall financial plan. If you don’t have goals to aim for, it’s like you’re shooting at a target blindfolded. Without clear and personal goals, you could be easily swayed by unexpected circumstances and the market ups and downs. When it comes to ESOs, they are just one means to achieving your goals.

One ESO detail to keep in mind is that you will eventually want to sell the stock after exercising your options. If you have a clear financial plan and work to minimize taxes, you may be able to move significantly closer to your goals with the proceeds received from the sale of your stock.

RULE #2: CREATE A PLAN

Once you have your goals in place, your next step is to create a strategy for how you will handle your stock options over time. Map out a plan for when to sell your options, making sure you that your actions are not only tax efficient, but they also line up with your goals. For example, selling a significant portion of your stock all at once could dramatically increase your tax burden.

Along those same lines, it’s important that you accurately value your stock options. The last thing you want to do is sell, thinking that you will receive a certain amount, only to learn that your net earnings are much lower. If you were trying to reach a goal with the sale, overvaluing your stock options could hurt your long-term plans.

RULE #3: BUY AND HOLD, BUT CONSIDER DIVERSIFICATION

Because stocks historically increase in value over time, it may be wise to hold your options for a a long time. This is especially the case if you believe that your company is doing well and will continue to do so for a long time. Of course, if part of your financial plan involves selling some of your options for short-term to intermediate-term goals, that is also fine.

However, if a majority of your net worth comes from your ESOs, it may be a better idea to consider diversification. This is akin to putting all your eggs in one basket. Do you really want so much of your financial well-being tied up in one company? The general rule of thumb is to hold

no more than 10% of your portfolio in your company’s stocks and options. Your income is already tied to your company, and now a majority of your net worth could also locked in to your employer. If the company performs poorly, it will depress the stock price and you may be laid off at the same time. There goes your portfolio, your income, and your health insurance all at once. Consider selling some of your ESOs and diversifying the proceeds in something else.

RULE # 4: KNOW THE RULES OF YOUR ESOS

Depending on the type of ESO that your company offers you and the overall company option plan policies, there will be specific rules that you should be aware of. These rules may cover the rights that you have if you are fired, quit, work for a competitor, retire, become disabled, or die. In addition, the rules will explain any vesting policies, which will help you plan ahead and maximize your stock option benefits.

RULE # 5: ALWAYS CONSIDER TAXATION

It is critical that you look at your current income tax bracket and calculate how a sale of stocks will affect your current taxable income. If the sale puts you into a new bracket, you may have to pay more on the proceeds than if you had smoothed your income over time.

In addition, if you have Incentive Stock Options (ISOs), you must familiarize yourself with the Alternative Minimum Tax (AMT). Read more here for a brief description on the different tax treatment of ISOs and Nonqualified Stock Options (NSOs). If you ignore the Alternative Minimum Tax, you may have to pay tax on your gains before you even have the money in hand. (1) This could be an unfortunate situation to find yourself in, so make sure to do your homework on the AMT as it relates to your options.

RULE #6: SEEK SOLID, PROFESSIONAL ADVICE

Stock options are a complicated asset and it can be overwhelming to determine how they fit within your overall financial plan. Because of that, it is important to seek professional advice when making ESO decisions. Make sure the professional you rely on has experience with employee stock options and can help you strategize your best moves.

At Archer Investment Management, we understand employee stock options and have experience helping clients maximize this benefit, minimize taxes, and diversify their portfolios. We’d love to help you with your employee stock options. Book an appointment online today

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than twenty years of industry experience. He specializes in providing comprehensive Financial planning and investment guidance and personalized care and attention to executives with complex compensation and families pursuing financial freedom. Along with holding a Wharton Bachelor of Science in Economics and a Texas MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com. 

___________

(1) https://www.mystockoptions.com/articles/index.cfm/objectID/26A61894-283B-11D4-B9070008C79F9E62/print/1/printformat/pdf

What You Need to Know About Employee Stock Options

Posted on April 16, 2017 by - Investment

Employee Stock Options

If you work for a large company, it’s likely that you have the opportunity to take advantage of a comprehensive benefits package. Understanding all of the perks that you are entitled to is crucial to your long-run financial success. One perk I’d like to highlight is Employee Stock Options (ESOs). Through my explanation of the ins-and-outs of ESOs, you will have a better understanding of how you can make the most of them.

WHAT ARE EMPLOYEE STOCK OPTIONS?

ESOs offer the holder the right to buy a certain amount of company shares at a predetermined price for a specified period of time. Employees are given a share in the potential growth of their company’s value, without actually risking their own money—until they decide to exercise their options and purchase shares of the company’s stock.

HOW DO EMPLOYEE STOCK OPTIONS WORK?

Let’s say you work for Company XYZ, and they have issued employee stock options to you at $50. In this scenario, you would have the right to purchase 1,000 shares of XYZ stock at $50 (the grant price) after three years (the vesting period) and within ten years (the expiration date) of the grant date.

Taking the example above, what happens if, after four years, the market price of XYZ is at $100? In this case, you can purchase 1,000 shares at $50, then sell them at the $100 market price—pocketing a $50,000 profit!

Alternatively, if after four years, the market price of XYZ is at $25? At this point, you would not have to buy the shares at a loss. Instead, you can wait until the 10-year expiration date for the stock price to potentially surpass the grant price.

WHAT ARE THE DIFFERENT TYPES OF EMPLOYEE STOCK OPTIONS?

There are two types of ESOs that a company can grant: (1) Non-qualified Stock Options (NQSOs) or (2) Incentive Stock Options (ISOs). NQSOs are the most common type offered by employers.

Non-qualified stock options (NQSOs) do not qualify for special tax treatment and result in additional taxable income to the recipient at the time that they are exercised, the taxable amount being the difference between the grant price and the market value on that date. In addition, when NQSOs are exercised, income, Social Security, and Medicare taxes will be withheld.

In contrast, Incentive Stock Options (ISOs) qualify for special tax treatment and are not subject to Social Security or Medicare withholding taxes.

WHAT IS THE TAX TREATMENT OF EMPLOYEE STOCK OPTIONS?

As discussed above, it is clear that NQSOs and ISOs are treated differently when it comes to taxation. However, for both types, the grant of the option itself is never considered a taxable event.

For NQSOs, taxation begins at the time that the option is exercised. Once exercised, the purchase of discounted stock is considered “compensation” and is taxed at ordinary income tax rates. When those purchased shares are sold, either short-term or long-term capital gains taxes may be owed. With short-term capital gains, the employee would be subject to tax at their ordinary income tax rates. With long-term capital gains, the tax would be significantly reduced.

Gains on ISOs are not subject to payroll taxes. However, ISOs are a preference item for the alternative minimum tax (AMT) calculation. Also, if you exercise your options and sell the stock within a year, you will pay ordinary income tax on the difference between the market price at sale and the grant price, much like the treatment of NQSOs.

When you exercise the ISO but hold the stock, tax treatment can get quite complicated. In this situation, the difference between the grant price and the market price then becomes an AMT preference item, so exercising ISOs might mean you’ll pay the AMT. If you hold the shares for one year from the exercise date (and two years from the grant date of the option), the difference between grant price and market price when you sell the option is taxed as lower long-term gains rather than ordinary income.

HOW SHOULD EMPLOYEE STOCK OPTIONS FIT INTO YOUR FINANCIAL PLAN?

It is important to think of your ESOs in the context of your overall financial plan. First and foremost, your financial plan should be based on clearly defined goals for yourself and your family. Once you have your goals set, how can ESOs best help you reach them? This is never an easy question to answer, but the more you understand about the ESOs at your company and their future growth potential and taxation, the better off you will be.

We’d love the opportunity to develop a custom ESO strategy for you. Click here to schedule a phone call and please visit us at Archer Investment Management.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful executives and business owners, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and an MBA, he is a CERTIFIED FINANCIAL PLANNER™ and a CFA® charterholder. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.