5 Things Not Necessarily Included in Your Home Purchase
The buyer of a historic Victorian home in upstate New York fell in love with the gigantic…
The buyer of a historic Victorian home in upstate New York fell in love with the gigantic…
Most good habits don’t have a “set it and forget it” solution. They take work. But investors have it easy. Unless, that is, you’re being a dummy.
Low-budget movies are often seen as a compromise, needing more resources and the big-name talent of their more expensive counterparts. However, these movies have proven time and time again that with a strong script and creative vision, a small budget can lead to genuinely incredible filmmaking. After someone asked Reddit for low-budget films that made … Read more
Available home inventory has remained low since the previous Federal Reserve Beige Book report, as many sellers have decided not to list.
Should you invest your emergency fund? It’s a growing debate, and I feeling very strongly about my answer.
Lyft vs. Uber: Which is the best for making money driving people around? Hereâs an in-depth look at the differences between the two ridesharing companies.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
I grew up in upstate New York, and Iâve always been a New York Giants fan. Odell Beckham Jr. is a player Iâve followed even after he left the Giants, so Iâm excited he will have the opportunity to play in the upcoming Super Bowl for the Los Angeles Rams.
Recently, I was surprised to read about a financial decision he made. When he became a free agent in November, Odell decided to be paid his $750,000 salary in bitcoin. After bitcoinâs recent plummet in January, and after taxes, the news report estimated he will net approximately $35,000 from his contract with the Rams for the entire year.
Fortunately, Odellâs previous contracts with the Giants and Cleveland Browns paid him tens of millions of dollars â so he may have seen the risk as minimal.
But Odellâs situation has some interesting implications for executive compensation.
Executives, especially when they change jobs, often get a chance to negotiate their compensation. In some cases, they can take a signing bonus in company stock instead of cash. Or, they can take a bonus that is split over a couple of years, assuming they stay with the company long enough to collect.
At some companies, executives are also given a choice about how to receive their long-term incentive award. For example:
So, what is the right choice?
Many executives take long view, which means using these long-term equity awards to meet their retirement or college savings goals, as well as help cover expenses in retirement.
If there is a choice of all three â stock options, restricted stock and performance-based restricted stock â I like a combination of all three, split into one-third each. This, in essence, is a diversified portfolio of company stock plans that doesnât place all the pressure on the stock market or the individual companyâs performance.Â
For the executive who consistently saves money from their salary and cash bonuses over the years, they often can afford to take more risk and elect just the stock option component. Others who rely on their long-term incentives to meet living expenses or other short-term goals may want to go with the more conservative route and choose only restricted stock awards.
One of my clients who works for a Fortune 500 company has seen his stock options increase in value by 500% while the company stock price has risen 200% in the past two years. He immediately takes the cash proceeds from the stock options and reinvests them in retirement accounts, childrenâs college accounts, and reduces debt.
Executives who work abroad face different compensation options. If given the choice to be paid in the local currency or U.S. dollars, the executive needs to think about the currency that will pay for most of their living expenses, as well as the currencyâs stability against the dollar.
A client recently shared a story about her colleague, a U.S. executive working in Turkey, who is paid in lira. The executive pays her nanny in U.S. dollars. Due to recent currency conversion differences, the nanny is making almost as much as the executive!
Getting back to Odell. Itâs quite possible he believed he could turn his $750,000 salary into multiplies of that amount by investing in cryptocurrency. And if bitcoin rebounds dramatically, he may not regret his decision.
Similarly, most executives shouldnât take heavy risk with compensation decisions unless they are already financially independent, or are saving enough outside of their stock awards, for example, to meet their short- and long-term financial goals.
Remember that all risk assets can have periods where the asset price moves lower. With the stock market off to a rocky start in 2022, there is always the temptation to seek assets that could deliver a higher yield now. But most executives should look at their compensation decisions as part of a comprehensive financial and investment plan, so money will be there when they need it.
Drew and Jonathan Scott put our knowledge to the test in the latest episode of “Property Brothers.” See how you’d score on their ultimate quiz.
The post Property Brothers Quiz Their Fans: How Much Do You Know About Buying, Selling, and Renovating? appeared first on Real Estate News & Insights | realtor.com®.
These 10 spots will give you ample places to dance, sing, eat, laugh and be merry!
The post The Best Cities For Nightlife in America appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
New York City is never too far away from these towns!
The post 10 Cities Near New York To Live in 2021 appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.