Manage episode 295269272 series 2907060
Owning company stock in your 401k can elicit strong reactions. Whether you are for and against the idea, I suspect you I believe you are right. You might be, but you might not be. There is no right answer, so listen to this episode to learn about the pros and cons of doing so.
I field my first listener question about the Default option. There is a second question about setting up an allocation and not touching it? It is great to know people are listening and are asking questions.
On the company stock topic I will touch on Net Unrealized Appreciation or NUA. If you don't know that is, be sure to listen, it can save you money! Converting Ordinary Income in to long Term Capital gains. NUA lowers your future Required Minimum Distributions or RMDs. There are a few things you have to do and a tax cost up front. In the right situation it is worth it.
I'll share a story of an unhappy person who got prudent financial advice. They didn't like the outcome, but the advice is what you should have done. Finally, I will remind you of the power of the self-directed investment option in the 401k called BrokerageLink.
For more information or to contact me, go to https://poweringyourretirementradio.com/owning-company-stock-in-your-401k