10 Podcasts to Scale Your Startup Business

Are you trying to accelerate your growth? If you are running a business or thinking of starting one soon, then you probably have a long list of business books you want to read. But it can be hard to find the time to read like you know you should.

Podcasts are a great way to keep learning during your morning commute or during those pockets of the day when your hands are busy but you have the bandwith to listen, like when you are making dinner or waiting in the school pickup line.

Here's 10 business podcasts to get you started:

1. HBR IdeaCast by Harvard Business Review

HBR IdeaCast is hosted by senior editors at Harvard Business Review. The podcast covers as many topics as the print publication by bringing in leading thinkers in all areas of business and management for each episode.

2. How I Built This

How I Built This with Guy Raz tells the stories of how some of the best-known companies got started. Even if you never see your business becoming a global company, it's still interesting to see how the big names got there, and many of their early steps are things you can replicate as you build towards your own goals.

3. Masters of Scale

LinkedIn co-founder Reid Hoffman hosts Masters of Scale. This podcast also examines large growth companies with an emphasis on how they went from tiny ideas to the companies they are today. Each episode features different industry leaders explaining and challenging the theories behind fast growth.

4. The Tim Ferriss Show

Tim Ferriss got his start with the book The 4-Hour Workweek. If you're trying to learn about time management and how to increase your productivity, this is the podcast to tune into. The show also covers other ways to boost your success in sports, arts, and business.

5. Entrepreneurial Thought Leaders

Entrepreneurial Thought Leaders is part of the Stanford Speaker Series. If you miss the days of guest speakers on your college campus, this is the place to go. Stanford follows the same format bringing in entrepreneurs and innovators to tell their stories of how they launched and grew their businesses.

6. Startups for the Rest of Us

Startups for the Rest of Us is by software developers for software developers. If you're building an app or are launching a software product, this is where you want to go to learn from people who did it before you.

7. Smart Passive Income

The theme behind Smart Passive Income is doing a little work now to have a regular income stream coming in with almost no future work. If you're trying to build a side hustle or would rather spend your time out on the golf course, the marketing tips in this podcast will help you get there.

8. Youpreneur

When your company is small, you are the company. Youpreneur dives into how to build your personal brand and establishing yourself as an authority to give yourself the credibility to take on industry giants.

9. Online Marketing Made Easy

If you want to launch a business in today's economy, online marketing is essential. Online Marketing Made Easy is an educational series covering the basics including social media, content marketing, and branding.

10. As Told By Nomads

Hosted by digital marketing specialist, Tayo Rockson, As Told By Nomads shares a variety of insights for entrepreneurs looking to leverage digital marketing to really make an impact in the business world. If you're in need of some creative inspiration and out-of-the-box digital marketing ideas this is a podcast to add to your listen list.

by Peter Donisanu

Ambition Pays: How Moving Roles Can Boost Your Bottom Line

What is the biggest career mistake that many high earning individuals make?

They stay in a job far past its expiration date.

And why is moving on from a bad job so hard to do?

Because leaving means change.

And let's face it, few of us like change.

Especially when it means giving up on all the time and effort you've poured into a situation or simply anticipating the uncomfortable feeling of the unknown.

But you know what?

The truth is that walking away to take a job with more attractive benefits is not only good for you, it can also help keep you out of trouble.

How so?

Well, there's the obvious fact that moving on can open the door to new possibilities and, as we discussed recently, can help you fast-track your way to financial independence.

More crucially, however, the truth is that moving on from an unproductive situation can help you avoid missed opportunities at best and disasters at worst.

But you know, when it comes down to it, walking away from an unfavorable work environment can help you avoid a potentially stalled or derailed career, a lifetime earnings shortfall, and even a long-term negative impact on your health and relationships.

Now, you might think, "this is all easier said than done," right?

Well, here's the thing.

It's one thing to know when to walk away from a bad situation and another to take that leap into the unknown.

That's why taking the time to assess the costs of staying comfortable, understanding what could be holding you back from exploring career opportunities, and knowing which next steps to take can help ease your transition into an unpredictable and yet likely rewarding future.

Understand Why You Haven't Left

Now, before we dive into a discussion about the costs of staying in an unhealthy work environment, let's spend a few minutes exploring why some individuals stay long past a job's expiration date.

And, so, why do we do it?

Why do so many of us well-qualified professionals stay in a work environment that values us for less than we're worth?

Well, the truth is that many of us don't have logical reasons for staying in unfulfilling jobs because our decision-making abilities, especially when it comes to a vocation or earning money, are emotionally driven.

And what are we talking about here?

When Our Emotions are in the Driver's Seat

Well, our decisions are largely based on our primal human instinct to either experience feelings like joy, love, and security or avoid feelings like anger, fear, or disgust from ourselves or the people around us.

And what do we mean here?

Well, when you decide to stay in an unhealthy environment, you might do so because of feelings like guilt of obligation, even when you know better options are out there waiting for you.

For example, if you're dealing with guilt, then you may feel that leaving would waste all the time and effort you've invested in your current job and work environment.

Or, you might feel guilt because you believe that you owe it to a boss or the company for past opportunities they may have given you. At the same time, you may also feel a sense of guilt and shame for wanting to leave behind other colleagues you might otherwise call friends, in a toxic environment.

Now, beyond guilt and shame, the feelings driving your desire to stay in a job may be driven by higher emotions, like holding onto hope that an otherwise bad situation will someday improve.

Now, make no mistake, feeling hope in this situation is essential because, without it, we wouldn't have a reason to get out of bed.

But even basing your career and income decisions on hope itself cuts both ways. That's because, as Viktor Frankl pointed out in his autobiography, the human psyche can take a big blow when it realizes that the thing it's anchored all of its hope on isn't going to happen.

Understanding How Emotions Drive Action

Now, while it may seem like fluff, there's science that backs up the notion that our decisions are driven first by emotions and then by logic.

Indeed, psychologist Daniel Kahneman, in his book, "Thinking Fast and Slow," describes a concept known as System 1 and System 2 thinking.

Now, System 1 is the fast, intuitive, automatic process responsible for quick reactions and gut feelings. System 2, on the other hand, is the slower, more deliberate, and analytical process that helps us solve complex problems.

So then, when you find yourself in an unhealthy work environment, your decision-making process regarding whether to stay or go is influenced by both System 1 and System 2 thinking.

How so?

Well, your System 1 thinking, being fast and intuitive, might immediately react to negative stimuli in your workplace. That's because if you're constantly feeling stressed, anxious, or undervalued, your initial gut reaction might be to flee the situation. And this response is your brain's autonomic nervous system kicking in to protect you from harm.

For example, if you overhear that you've been assigned to a toxic team even after several protests to your managers, then System 1 might trigger feelings of hurt or defensiveness without you consciously processing the context or intent behind the assignment.

On the other hand, your System 2 thinking, which is more deliberate and analytical, will weigh the pros and cons of leaving your job. Or, you might find ways to rationalize the stability of your current position or even criticize the prospects of finding a new job.

Ultimately, however, this slower, more methodical process might lead you to endure the unhealthy environment for a bit longer, especially if you believe there's a chance for improvement or if you deem the perceived costs of leaving to be too high.

Either way, if you've been struggling to get out of a bad job situation and can't understand why, then taking the time to evaluate "how" your body and mind might be processing the current situation could be the first step toward understanding your next move.

Evaluate the Costs of Standing Still

Alright, so now that we've talked about how your emotions and thinking processes can influence your decision to stay in a less-than-satisfactory work environment, let's talk about the costs of doing nothing.

And I get it, by now, some of you out there might be saying to yourselves, "My work environment is pleasant enough and, so I don't have a reason to leave, right?"

Well, your work environment might offer you sufficient pay and amenities to keep you satiated, but the big question here is, "is it the right job for you?"

More specifically, have you ever felt that your current role isn't pushing you forward as much as it used to? Or maybe you're now just going through the motions?

Well, the honest truth is that, more often than not, staying in one role for way too long, no matter how comfortable things may be now, might cost you significantly over the long term.

How so?

Well, let's first look at it from the perspective of professional growth.

Cost: Career Stagnation

Now, early in your career, you might recall that thrill of tackling a new project, or the satisfaction of mastering a complex task, or even the pride in leading a team to success. Indeed, these were the moments that not only defined your career but also helped propel your career to greater heights.

And while these past accomplishments may have landed you a cush assignment today, if you've been in the same role for too long, you might find those past moments of glory becoming few and far between.

And so, without new challenges and responsibilities, it's easy to fall into a staid routine, and that routine can become a roadblock to your professional development.

You know, when it comes down to it, you're capable of so much more, and sometimes, to realize that potential, you need to stop and take a moment to step out of your comfort zone or risk getting left behind.

And how's this possible?

Well, consider the rapid pace of development in the tech sector just this year alone should convince you not to sit on your laurels.

Indeed, everything that’s happened over the past 12 months should be evidence enough that a lack of innovation at large tech firms can become a very real threat to survival in very short order.

Remember the tools and approaches you mastered a couple of years ago?

With the advent of AI, they might already be on their way to becoming obsolete.

Indeed, this reality is especially true for jobs like yours because the tech sector thrives on change.

So then, from this perspective, you need to evolve with the changes to avoid being left behind.

Indeed, if you’re staying static, what you're doing is not only missing out on the latest trends and tools to enhance how you do your work, you're also likely missing out on the opportunity to be at the forefront of the next big thing in tech.

Remember, today's innovations are tomorrow's tablestakes in the tech world. So then, to stay ahead, avoid obsolescence, and keep your career moving forward, you need to place yourself in an environment that constantly challenges you to learn and adapt.

Cost: Financial Stagnation

Now, beyond the career mobility costs of staying in a bad fit job are financial costs that come along with it as well.

How so?

Well, imagine that you're standing at the base of a mountain, looking up at the peak. Now, that peak represents your financial potential, and every decision you make to focus on your professional development is a step you take is a move towards reaching the summit.

And what if you find yourself stuck mid-way up that summit?

Well, this is what can happen when you remain in a less-than-ideal work situation for too long.

To be sure, you're likely a high earner now who has enjoyed the fruits of your labor for quite some time. But have you ever considered that the annual raises you receive in your current static role might not be as lucrative as what you could earn elsewhere?

You know, there's a common misconception that loyalty always pays off.

And sure, while annual raises are a token of appreciation, they often don't match the potential earnings you could secure from a job change or promotion.

That's because in the tech world, where there’s rapid innovation and evolving skills are in high demand, the market rate for your expertise can rise or fall almost overnight.

That’s why if you decide to stay in a cush job for far too long, you might be inadvertently capping your income potential.

And beyond a higher salary, think about all the perks and benefits you could be leaving on the table.

For example, the tech industry is renowned for its competitive pay packages. And so, taking a new role can come with a host of benefits that go beyond just a base salary.

And what are we talking about here?

Well, more specifically, we're talking about better perks, lucrative bonuses, stock awards, and other financial incentives that can significantly boost your overall compensation.

And keep in mind that these aren't just numbers on a paycheck, they're tools for wealth accumulation, future security, and lifestyle enhancement.

Cost: The Emotional Toll

So, now that we've talked about the career and financial costs of staying in a role for far too long, there's one last critical cost that you'll likely want to consider, and that's the emotional toll that comes from staying in a job far too long.

Now, you'll likely recall the excitement you felt when you first started your role and the thrill of new challenges, or the satisfaction of problem-solving, and the joy of innovation early on in your career.

The big question now is, "do you have those same feelings about your current job today?"

You know, the truth is that, over time, doing the same tasks year after year can erode that initial enthusiasm.

Indeed, what was once a passion can slowly grind away into a chore. And you know, this isn't just about feeling bored at work, it's about the creeping sense of mental and physical exhaustion, and with it, a decline in your job satisfaction, which ultimately leads to burnout.

Now, it's critical to note here that burnout isn't just a buzzword. It's a genuine state of emotional, physical, and mental exhaustion brought on by dealing with stress for way too long. This is especially true when your job no longer ignites your passion, and sucks energy out of you, instead of enriching you, which can bring on burnout much faster than you think.

Alright, so, maybe your job isn't pushing you over the edge towards burnout, but there is the issue of mental stagnation that you should be aware of.

And why is mental stagnation important?

Well, the human mind thrives on novelty and challenge. In fact, it's how we grow, learn, and evolve. But feelings of monotony can set in when you're stuck in a role that no longer pushes your learning boundaries.

Now, it's critical to note here again that this isn't just about feeling bored, but rather, it's about the impact on your mental well-being.

Indeed, a stagnant mind can lead to lower motivation, lower creativity, and even feelings of depression. And even as someone at the top of your game, you deserve a role that challenges you, and excites and fulfills you mentally.

So then, when you're in a role that taxes you mentally, it can take a physical toll on your body.

How so?

Well, it's a well-documented fact that our mental state can manifest as physical symptoms in our bodies. Therefore, a lack of motivation or enthusiasm in a stagnant role could lead to tangible health issues.

For example, you might find yourself feeling constantly fatigued, battling frequent headaches, or even grappling with chronic conditions that are exacerbated by stress.

To be sure, your body has its way of signaling when something's amiss, and these symptoms can be its way of telling you that it's time for a change. And while the financial and career implications of staying in a less than ideal work situation are evident, the impact on your personal fulfillment and health is just as significant.

Break Free from Your Stagnant Role

Alright, so now that you understand the motivations for not leaving a job, and the costs of staying, what can you do to prepare yourself to leave?

Indeed, what can you do when you find yourself in a role that no longer fuels your passion or challenges your capabilities?

Well, here are a few things you may want to consider.

Start with Self Reflection

First, start with a moment of self-reflection. You know, it's easy to get caught up in the daily grind and lose sight of the bigger picture of where your career or even your life is headed.

That's why, when you're at this critical juncture and ready to make your next move, the first thing you should do is pause and ask yourself: "What do I truly desire from my career? And, "does my current position align with those aspirations?"

Remember, it's not just about the paycheck, it's about fulfillment, growth, and the legacy you want to leave behind to your family and in your community.

Tap into and Grow Your Network

Next, take some time to reignite or activate your networking efforts.

You know, the tech and business landscapes are ever-evolving, and connections are the lifeblood of opportunities.

They're not just lifelines out of a stagnant or miserable job, they can help you determine whether your next career move could be just as fraught as the one you're leaving.

So then, to up your networking game, you can start by rekindling relationships with former colleagues, make it a point to attend industry events, and always be receptive to forging new professional bonds.

Either way, you never know which conversation might lead to your next big opportunity.

Mentorship as a Change Catalyst

Another thing to consider as you prepare for your next career move is to work with a mentor.

Now, you might think that mentorship only applies to individuals early on in their career, but don't underestimate the power of these relationships.

Indeed, there's a wealth of knowledge to be gleaned from those who've successfully navigated career transitions similar to yours.

That's why it's essential to seek out wisdom from individuals whose career paths you admire and ask for their insights. You know, their perspectives can offer invaluable guidance, and help you avoid pitfalls and capitalize on opportunities you might not have seen on your own.

Now, if mentoring isn't for you, then at the very least, consider working with a career strategist. These professionals specialize in guiding top-tier talent and often offer tailored advice to help you transition into roles that not only match your financial aspirations but also offer the growth and challenges you seek.

At the same time, they can provide valuable insights into market trends, help you position yourself effectively, and even connect you with opportunities that might not be publicly advertised.

Why You Should Walk Away from a Less than Ideal Job

You know, when it comes down to it, in the ever-evolving job market, the only constant is change.

That's why embracing this change, rather than resisting it, is the key to unlocking your full financial potential. As we've discussed, staying in a stagnant role can have profound implications on your career, finances, and overall well-being.

But the journey to breaking free isn't just about recognizing the need for change, it's about equipping yourself with the right tools, mindset, and support system to navigate that transition.

And so, by understanding the emotional and logical factors that influence your decisions, recognizing the costs of standing still, and actively seeking growth opportunities, you can position yourself for success in both your professional and personal life.

Remember, your career is a marathon, not a sprint. Every step you take, even those that lead you into the unknown, is a chance to learn, grow, and redefine your life path and more crucially, take you one step closer to becoming the master of your financial independence journey.

by Peter Donisanu

How to Tackle Open Enrollment with Confidence

Open enrollment is just around the corner. Do you have what you need to make critical choices at this vital time of the year?

Now, while benefits elections might seem like a routine administrative task, the decisions you make during this crucial election period could significantly impact your finances for years to come.

But for many of you out there, open enrollment might feel like a maze of features and benefits that can leave you feeling so confused and overwhelmed that you resort to box-ticking just to get it over with.

And so, what if we could change the narrative this year?

What if this year was the year where you finally stepped off the default path, and made your benefits elections with confidence?

What if this year, instead of rushing through the enrollment process, you mindfully took your time and opted into coverages that align with your lifestyle needs?

And, so, how do you achieve this outcome?

Well, this approach begins with following a game plan for navigating the maze of healthcare choices, insurance options, and fringe benefits that are available to you.

More specifically, when you know how to approach your benefits book, which common pitfalls to avoid, and how to select your coverage options, you can make wise choices this benefits season without being overwhelmed.

Before You Open the Benefits Book

Alright, now the first step to making wise choices with your benefits this year so that you don't get overwhelmed is to take some time to evaluate your current needs. Now, it might be tempting to dive into your benefits elections, check the boxes, and just get the process over with.

With that said, and as counterintuitive as it may seem, taking time for reflection can make the process go faster than digging through the benefits book and making your elections as you go.

And so, why is this self-assessment so vital to the process? Well, it's pretty simple. And that's because, from one year to the next, your and your family's lives evolve, whether we're talking about changes in health statuses, family compositions, or retirement plans.

So then, from this perspective, ask yourself: How has my health fared over the past year? Have any significant health challenges reared their heads in my family? And because of these changes or other developments, am I anticipating any major life events, such as surgeries or pregnancies, in the coming year?

More specifically, let's say that you just discovered that you're about to become a parent. Now, this year's health plan might have sufficed for your individual or couple's needs, but with baby on board, now may be the time to make some plan changes.

Certainly, thinking down the road, having a baby is a qualifying event that would allow you to make changes to your plan after your child is born, but different health plans offer different maternity or pediatric benefits, which could be a more fitting choice for the year ahead before the baby arises.

Either way, it's essential to start by evaluating your needs for the year ahead. Indeed, without this self-evaluation, you could end up overlooking a pivotal shift in your needs and, as a result, in your benefits selection for the year ahead.

Review Your Usage

Now, another thing you'll want to do before cracking open that benefits book is to consider your past year's benefits usage. More specifically, this process involves taking the time to reflect on your interactions with various benefits providers over the past year or so. And as you do, ask yourself, "did my current plan meet my needs, or were there gaps?"

Here again, understanding your past usage is key to anticipating your future usage needs and hence, your insurance coverage needs. So then, take a moment to review how your existing benefits have performed and how you've utilized them.

For example, let's say that over the past year, you've seen several doctors and specialists due to the sudden onset of a chronic health condition. Now, in this case, your current plan may have burdened you with hefty out-of-pocket expenses.

So then, if you anticipate your health condition to persist for some time, then you might choose a plan with higher premiums but lower deductibles in the year ahead, which could significantly minimize your out-of-pocket expenses.

Either way, take some time to ask yourself whether there have been instances where out-of-pocket expenses soared due to inadequate coverage. Did your network of healthcare providers meet your needs, or did you have to go out of network? And were there any benefits you paid for but did not utilize, like your flexible spending account (or FSA)?

Indeed, a candid review of these and similar questions will likely shape your understanding of what worked and what fell short and likely equip you with insights for effective benefits elections decisions in the months ahead.

Don't Just Look at Costs, Consider Value

Okay, so now that you have a solid grasp on your health experiences over the past year and what you might anticipate with respect to medical needs in the coming year, it's now time to crack open that benefits book and begin reviewing your options.

So then, the first thing you're likely to do as you review your benefits choices is to look at costs. With that said, however, the process of selecting your benefits shouldn't be just a mere financial comparison. Indeed, you need to look beyond the dollar figures to appreciate each plan's holistic value.

And so, why shouldn't we look just at the cost of services offered? Well, the rationale here is simple: low cost doesn't always translate into the best value.

That's because a seemingly cheap plan could leave you grappling with sizable bills for certain services later on, while a seemingly more expensive plan might offer better coverages, leading to lower out-of-pocket expenses over the coming year.

Indeed, making your benefits elections based on low premiums and thinking that you're making the most economical choices could leave you in a lurch if your plan offers limited coverage or a restrictive network of providers.

To be sure, because of your cost-effective choices, you could even find yourself burdened with high out-of-pocket costs for procedures not covered or for seeing providers outside of your network, which likely will negate your cost savings altogether.

So then, as you're reviewing your options this benefits season, don't get hung up on the upfront costs only to get caught with hidden expenses on the back end. Indeed, take a moment to think through the value of the services offered through each plan beyond its price when choosing your benefits options.

How to Avoid Common Potholes

Alright, so now that we've talked through the importance of understanding your current needs, reviewing your past benefits usage, and taking a comprehensive look beyond mere costs, let's take some time to talk through some ways to identify and avoid common pitfalls that you may encounter when navigating the benefits selection process.

Now, no matter how well-prepared you are, the road to choosing your benefits can be filled with unexpected twists and turns. For example, you could come into this benefits season and just stick with what's familiar.

Indeed, you might even think to yourself, "Well, why shouldn't I just renew my current healthcare plan? It's worked fine for me until now."

Well, maybe that's true, but there's an issue here.

More specifically, each open enrollment period brings with it not just an evaluation of changes in your own life, but also changes to your benefits as a whole! Keep in mind that employee benefits are one of the most significant costs many employers face outside of employee salaries.

And so, given changes in the marketplace, your costs and benefits coverages from one year to the next could experience changes ranging from minor adjustments to a major benefits revamp.

For example, let's say that you opt to click through the defaults this year, only to discover a few months later that a procedure that was covered in last year's plan is now a hefty out-of-pocket expense. In this situation, you'd likely be stuck with your current coverage until a qualifying event or next year's open enrollment period before you could make any changes to your plan.

So then, as you gear up for open enrollment, don't allow the allure of the known to blind you to the potential benefits of what's changed. That's why it's essential to take the time to dive deep into the specifics of each plan every year, even if you anticipate that nothing has changed.

The Hidden Treasures of Benefits

Now, the next thing you want to pay extra attention to is the not-so-obvious benefits that many employers offer. To be sure, your focus might naturally drift towards the big three coverages like medical, dental, and vision, and then you're done, right?

Well, it's critical to note that your employer's benefits package might offer coverages that could leave you with unnecessary lost opportunities.

How so?

Well, let's say that you decide to opt out of short-term disability insurance, only to face an unexpected incident that leaves you wishing you had that safety net as you burn through savings during your long-term disability waiting period.

Or maybe, as you approach this year's benefits season, you realize that your employer could have deposited thousands in free money to your HSA (or health savings account) had you simply taken a few minutes to participate in your plan's wellness programs.

And let's not forget about the legal assistance benefit that might seem irrelevant now but could prove invaluable during significant life events like buying a home or drafting a will.

So then, as you navigate through your benefits book this open enrollment season, take some time to expand your thinking beyond the conventional because you never know what you might miss.

The Clock is Ticking

And now, as we're thinking through common pitfalls and mistakes during open enrollment season, it's crucial to not miss out on the big one this year: get clear about your enrollment deadline.

Now, this might point seem like an insignificant administrative detail, but it carries significant consequences.

How so?

Well, imagine that you've invested significant time and energy into reviewing your options, weighing the benefits and costs, and finally landing on an ideal mix of healthcare and fringe benefits. But the trouble is that you spent all that time completing your analysis and yet missed your deadline, and now you're stuck with last year's choices.

Now, this might not be the end of the world, but it is a crucial point nonetheless.

And why's that?

Well, here again, outside of any qualifying life events like getting married, having a child or changing jobs, you'll likely be stuck with your benefits for an entire year.

So then, remember that open enrollment is, in a way, a race against time. And yes, while all those emails from HR reminding you of the deadline are annoying, they're there for a reason.

And, as you review your benefits options, take the time to make a note of key dates, set your own alerts, don't rely on management for reminders, and secure your chosen coverage without feeling overwhelmed this open enrollment season.

How to Evaluate Tradeoffs Between Various Benefit Options

Alright, so now that you have a basic understanding of some things to consider before diving into your benefits book, let's talk a little about an approach you can take to wade through the various options you have available to you.

Now, for many of you out there, the mere thought of looking through your benefits could fill you with a sense of dread as you consider all the options available.

In fact, you might take one look at that benefits book and be tempted to go with the default options from last year instead of working through this seemingly arduous process.

And yes, you likely already know how not being mindful of your options can either cost you money or mean leaving money on the table.

So then, what can you do to explore all of your options without getting bogged down in analysis paralysis?

Well, this year, you can try using a four-step approach to help you more effectively decide on benefits that best match your needs.

And, so, what does this look like?

Step 1: Prioritize

Well, at a high level, this means starting by prioritizing your key healthcare needs and preferences so that you can focus on what matters most to you.

Now, this might mean identifying plans that offer lower monthly costs, flexibility in choosing your healthcare providers, or ones that allow you to gain access to a wider network of medical facilities.

Either way, knowing your priorities ahead of time can help you find a plan that aligns with your specific needs and circumstances.

Step 2: Evaluate

The next step you'll want to take in our four-part process is to evaluate your options and compare features like costs, premiums, deductibles, and out-of-pocket expenses for each healthcare plan.

For example, a high deductible health plan (HDHP) gives you the ability to contribute to an HSA that offers a triple-tax savings. Now, this option might be a solid choice if you're in good health, but if you're dealing with a pre-existing or chronic condition, then the long-term savings advantage might not outweigh the out-of-pocket costs from a high deductible health plan.

Either way, this approach is critical because it can allow you to strike a balance between short-term affordability and long-term protection while, at the same time, allowing you to make sound financial decisions while safeguarding your health needs.

Step 3: Research

And whether you're starting out at a new company, your benefits have changed recently, or you simply have never explored your benefits before, then the next thing you'll also likely want to consider is your provider network.

Now, the objective of this step is to allow you to gain some insights into the various healthcare options available to you to ensure that your preferred doctors and medical facilities are covered under the plan you choose.

And why is this important?

Well, this approach likely will minimize the risk of surprises or inconveniences when it's time to get medical care or work with a specialist down the road.

Step 4: Select

And finally, now that you're armed with your priorities, evaluations, and research, you can confidently choose a benefit that best suits your needs and financial situation.

Now, it's one thing to think about the coverage you need. Ultimately, you'll need to select your coverages. So then, take the time to go back and review your selection to ensure that you're not leaving money on the table.

The Four-Step Approach in Practice

Alright, so now that we've talked through this four-step approach, what exactly does it look like in practice? Well, let's take a look at it from the perspective of choosing a healthcare plan.

Healthcare Plans

For example, during open enrollment, you'll likely have the opportunity to choose from different healthcare plans, such as HMOs, PPOs, HDHPs, and others.

So then, the big question for you here is, which one should you choose?

Well, here again are the four points you may want to consider as you go through the election process:

Step 1 - Prioritize: Identify your key healthcare needs and preferences. Are you looking for lower monthly costs, greater flexibility in choosing providers, or a plan with a more extensive network of medical facilities?
Step 2 - Evaluate: Compare the costs, premiums, deductibles, and out-of-pocket expenses for each plan. Balance short-term affordability with long-term protection.
Step 3 - Research: Examine the provider networks to ensure your preferred doctors and medical facilities are covered under the plan you choose.
Step 4 - Select: Make an informed decision based on your priorities, evaluation, and research, and don't forget to select the plan that best suits your needs and financial situation.

**Now, it's essential to note here that this is just one example of options you may want to consider. We offer more detailed guidance on how to use prioritize, evaluate, research and select various coverage options in this month's FI Mastery journey, available at https://app.fimastery.com.

Tackle Open Enrollment with Confidence

Now, as the open enrollment period kicks off this year, it's crucial to remember that picking your benefits isn't just a routine, administrative task. In fact, it's an opportunity to shape the foundation of your financial wellness for the entire year ahead.

That's why, as you go about reviewing your benefits book this year, it's vital to be deliberate and proactive throughout the process. And to do this, you can start by assessing your current and future needs, understanding the options available, and then making informed decisions.

Now, if you've avoided giving this critical process your attention in years past, then overcoming the inertia and confronting the complexity of employee benefits might seem daunting at first, but the payoff can be significant if you put in the effort.

Indeed, the process, while seemingly meticulous, not only offers you immediate benefits that help align your needs with benefits offered, but the process itself can also help you build a habit of mindful financial decision-making that ultimately can help you tackle open enrollment with confidence and take you one step closer to becoming the master of your own financial independence journey.

by Peter Donisanu

Forget Roth, Here's Your Single Best Investment

What's the one investment that can double, triple, or even ten-x your wealth and keep producing a steady stream of income no matter what life throws your way?

It's human capital.

Indeed, investing in yourself is the single most valuable component of wealth building. And yet, it often doesn't get the attention it deserves.

And, so, what exactly is human capital?

Well, you can think of human capital as the unique value that you bring to the world. In a way, it's like an invisible backpack of everything you know and can do that adds value to yourself and the people around you.

In fact, you can think of your own human capital like you would a character in a video game, where the more skills and abilities your character gains, the more valuable your character becomes over time.

And just like in a video game, the more skills and experience you collect, the stronger and more valuable you become, allowing you to level up and take on greater challenges and responsibilities in the game of life.

Now, as critical as human capital sounds, the truth is that many individuals believe that human capital development stops after college.

The fact is, however, that if you're looking for a way to supercharge your path to financial independence and preserve the wealth you have today, then understanding who you need to become, executing like a pro, and taking your skills to the right arena can ensure that you're making the most of your most vital wealth-building asset.

The Power of Becoming Yourself

Alright, so if human capital is one of the most valuable components to getting what we want out of life, where do you start? Well, the first place to start is by first understanding who you need to become. You see, for many of us, up until our twenties or thirties, we're simply following the scripts handed to us by our family, friends, colleagues, and society at large. And so, more often than not, developing your skills often means doing what you think others want you to do so that you can get what you want.

The truth is, however, that developing your human capital is intrinsically tied to a more profound journey of self-awareness, personal growth, and self-actualization or becoming the best version of yourself. Indeed, Richard Rohr, a Franciscan monk who has spent his time sharing his thoughts on this perspective, says that when we embark on the path of understanding who we need to become, then our growth efforts naturally align with that vision, giving us a deeper sense of our own purpose and direction.

Now, this process isn't just about amassing knowledge or skills but more about diving into the nuances of our strengths, desires, and passions.

To be sure, this journey, when done intentionally and not because others tell us we need to do it, becomes one of understanding because it acts like a motivator or a beacon that guides us through our immediate life challenges and daily obstacles.

In fact, it fuels our perseverance, making each step forward more satisfying and meaningful. And as we continue on this path, our interactions with others become more genuine, which comes from a place of authenticity. So then, this approach not only aids in forging deeper connections in our personal and professional lives but also ensures that our growth is well-rounded and encompasses both our professional goals and personal growth.

What's more, in a constantly evolving and changing world, having a clear internal vision of who we want to become is critical because it serves as our anchor, allowing us to adapt and navigate through changing circumstances without losing sight of our core self.

That's why, if developing human capital was as simple as going back to graduate school or, getting that advanced degree, or pursuing certificates to add letters behind your name to fit into other people's mold, then you'd likely miss the bigger picture of what the process is all about.

To be sure, at its core, understanding who you need to become as you develop your human capital is about ensuring that your journey is purpose-driven and comes from a place of self-awareness so that it encompasses all facets of who you were meant to be.

Pretty deep, right?

Create a Vision of Who You Want to Become

Well, it might seem that way when you've spent your entire life living other people's scripts. Indeed, this first step is really about taking the time to understand better who you need to become so that you can intentionally do the work of developing your human capital that reflects what matters most to you.

And so, how do you go about this process?

Well, to start, you'll want to take time to go deep into self-reflection. Listen, we're not talking about hacks or shortcuts here. If you want to genuinely build out your most valuable asset, you need to take the time to understand what you've got. So then, to achieve this end, you can go out on a retreat to get away from it all for a few days, or simply go for a walk for a few hours to clear your mind. Either way, spend time reflecting on your core values, passions, strengths, and weaknesses so that you can better understand which steps to take next.

And while you're at it, think about questions like, "When I was five years old, what was I naturally good at?" or "What sorts of projects energize me?" And, if you're still stuck on questions to ask yourself, Warren Berger's book on asking beautiful questions can help here. But the point is to prompt questions to help you craft a vision of your ideal future self based on the qualities, skills, and experiences you aim to possess. Indeed, what you're doing is creating a mental image of who you want to become, which can act as a guiding force in your journey of discovery.

Goals as Milestones

Now, once you have an idea of where you’re going and who you need to become, like anything worth pursuing in life, you'll need to set meaningful goals so you can achieve what's essential to you. That's why you'll need to take that grand vision of your future self and break it down into smaller, more achievable milestones. These smaller goals can act as mile markers on your journey, ensuring you're moving in the right direction when you feel lost or tired.

And so, how do you know which direction you should head? Well, to figure this out the next thing you'll want to do is to get feedback from trusted individuals in your life to help identify gaps between who you are today, and who you want to become. Here, you'll want to engage with trusted mentors, friends, or colleagues who can provide a clearer understanding of your strengths and weaknesses and to help you better understand the skillsets and blindspots you have today that are either helping or hindering you from becoming the ideal version of yourself.

Now, given your intrinsic goals, coupled with this feedback, you can prioritize your learning that aligns with a grander vision of who you want to become. Indeed, this skills development can come through formal education, online resources, books, or experiential workshops. Either way, the point here is not just about acquiring degrees or credentials because other people expect you to do so.

Rather what you’re doing is educating yourself as a way to ensure that you're constantly acquiring knowledge and skills that align with your envisioned path. And, by taking on this transformative journey with self-awareness and intentionality, you'll likely have the ability to develop your human capital authentically which ultimately will allow you to provide immense value to those around you.

Execution: More than Just a Dream

Alright, now that you understand how to align your human capital development with who you want to become, let's talk about actually doing the work. Now, when you embark on this journey of understanding and developing your human capital, execution is the bridge between what you'd like to achieve and the likelihood that you'll actually get it.

Make no mistake, while introspection, vision crafting, and planning are essential components for laying the groundwork for your human capital development, it's through execution (or doing the work) that your ideas and aspirations actually materialize.

For example, imagine that you have all the knowledge about a specific skill or a concept, but you never apply it. It's like the man or woman who has spent all their time reading about training routines, supplements, gear, and other hacks necessary to complete a marathon, and yet they never get off the couch. In situations like these, all their work remains theoretical.

Indeed, without execution, your understanding remains within you, untouched and, more importantly, unchallenged by the outside world. That's why, by actively executing, what you're doing is translating your internal insights, growth, and learnings into tangible results, whether that's in personal achievements, professional projects, or the relationships you foster.

To be sure, execution also allows you to put your game plan to the test as you encounter real-world challenges. Here again, it's one thing to anticipate obstacles in your mind, but facing them head-on offers a learning experience from the school of hard knocks that you can't get in a classroom setting.

And so, as you confront these challenges, you're forced to adapt, learn, and refine your approach, which at the same time allows you to enhance your skills and deepen your understanding in the process.

At the same time, when you execute consistently, what you're doing is reinforcing your commitment to your goals. And this is crucial because, as James Clear puts it, every action you take is a vote for the type of person you want to become. It's a testament to your dedication and the seriousness with which you approach your vision.

And you know, when you’re serious in your approach, your actions have the ability to boost your own self-confidence and build credibility with others, showing them that you're not just a dreamer, but a doer.

In essence, while the journey of understanding who you need to become is deeply personal and introspective, it's the act of execution that propels you forward, which makes your vision a tangible reality. So then, as you navigate the path of personal and professional growth, remember that it's your actions, through your execution, that truly bring your aspirations to life.

Take Your Skills to the Right Arena

Alright, so now that we've talked about developing your human capital by first identifying who you want to become and then actually doing the work, let's talk about taking your skills to the right arena.

And what do we mean about bringing your skills to the right arena? Well, you can think of it like the story of the priceless stone. Now, there are many renditions of this story, but in its essence, the story is about a boy who one day asks his father to tell him the value of his own life.

Well, the kid's father gives the boy a stone, and tells him to successively take it to a market, a jeweler and a museum to see how individuals in each of those settings would value the stone. And so, as he does this, the boy ultimately discovers that while the market shoppers see the stone as just another rock and offer him just a little money for his troubles, the jeweler recognizes its worth as a gemstone and offers the kid real money, while at the museum, its historical significance makes the stone nearly priceless.

So then, at its core, the boy's father uses this exercise to teach him that external appraisals from others don't determine the value of his life. To be sure, the story goes to show that intrinsic value, or what we believe we’re worth, often varies depending on where and with whom the boy chooses to "place" himself. And so, the story underscores the importance of understanding one's worth and not allowing ourselves to settle for little gains, especially when what we bring to the table can be valued so much higher in the right setting.

To be sure, your human capital, which encompasses your skills, talents, and the unique value you bring, is like that precious stone. And so, while developing your skills and talents is undeniably essential, when it comes down to it, where and how you choose to showcase those skills can dramatically influence the return you get on the investment you've made in yourself.

And what exactly are we talking about here?

Well, if you're in a personal or professional relationship that doesn't recognize or value your unique skills or talents, then, over time, you'll likely feel underappreciated, stifled, or even out of place. In fact, in the wrong environment, it can feel like no matter how much you improve or develop, you'll never be good enough, which can ultimately lead to feelings of frustration, devaluation, or even questioning your own sense of self-worth.

And, just like that precious stone we talked about a moment ago, in the wrong environment, no matter what you do, your brilliance could remain hidden or undervalued, which, over time, can not only erode your confidence and limit your potential growth, but also limit the full value that you could otherwise get from your intrinsic human capital.

Now, with all that said, when you find the right arena to showcase your skills, you'll likely be able to amplify your own value and naturally supercharge how quickly you achieve your goals in extremely short order. What's more, when you're surrounded by individuals or teams that complement and value your skills, collaborative efforts can lead to outcomes greater than the sum of individual efforts you find yourself in.

To be sure, in an environment where your skills are recognized, appreciated, and in demand, you'll find more opportunities to apply them, refine them, and develop them even further. This reality not only accelerates your personal and professional growth but also brings to the fore the true value of your human capital.

And so, how do you ensure that you're in the right arena?

Well, to start, you'll want to have a deep understanding of your core strengths and values. Here again, to do this, you'll need to invest the time in deep introspection to truly grasp what you bring to the table, which is why understanding who you want to become is such a critical first step. To be sure, when you know what you're truly good at and passionate about, it's easier to identify specific places and people where those strengths and passions will be most valued.

Now, the next thing that you'll want to do to ensure that you're in the right arena is to do deep research on your target environments. This could include understanding companies you'd like to work for, organizations you'd like to partner with, or communities that have a track record of valuing and nurturing the skills and attributes that you possess.

More specifically, what you'll want to do is set up informational interviews with people in these specific locations to get their perspectives. And if this approach is too personal for you, you could also take the time to look for testimonials, reviews, or firsthand accounts from people who have been in those environments to get a better handle on their experiences.

Either way, as you go about this process, be sure to prioritize environments that promote growth. And why is prioritizing growth important? Well, you're either growing or dying. And so, being in a place that not only values your current skills but also fosters continuous learning can be truly rewarding because as you refine and develop your abilities, you're in a setting that recognizes and rewards that evolution.

And finally, remember to trust your intuition. This saying seems so simple, but really is so very crucial because what's often holding you back from leveling up in life is not your skillset, but just being in the wrong spot. It's like a flower that's mistakenly planted in the shade, and when moved to sunlight, blooms and shows its true colors.

To be sure, sometimes, despite all the research and feedback, your gut feeling can be a powerful guide to tell you if you're in the right place or not. And, if you're in an environment where you consistently feel undervalued or out of place, then it might be time to consider moving to a setting more in line with your intrinsic value.

Either way, as you go through this process, it's essential to not only be patient but also persistent. You know, finding the right arena to showcase the unique values and talents that you bring to the table may not happen overnight. In fact, it might take trying out several different environments before you land on the one that truly values and amplifies your unique skills and contributions, but the effort is definitely worth it in the end.

You Are Your Single Best Investment

You know, when it comes down to it, there's only one version of you. And the journey you're on right now, with the wealth of experiences, skills, and talents you possess, that's your human capital.

That's your superpower.

With that said, the challenge is that many of us were raised with a script that says: "Go to college, get a job, buy a house, get married, and save for retirement." That's the value you bring to the world. But the truth is that this script is often unsatisfying to most of us, which is why developing your human capital isn't simply a chapter that ends after graduation.

Indeed, developing your human capital is a lifelong process that can pave the way toward the authentic life you genuinely desire.

Remember, your value is best realized when you deeply understand and cultivate your intrinsic worth, actively execute on your vision and place yourself in environments that recognize and nurture your unique talents and abilities.

Indeed, focusing on developing your human capital will take time and intention, but with a little persistence and patience will also take you one step closer to becoming the master of your own financial independence journey.

by Peter Donisanu

What Drives the Value of Your Employer’s Stock?

If you contribute to your employer’s 401k or receive equity awards, you may occasionally find yourself struggling with understanding how the value of your employer’s stock can affect your wealth and overall financial independence plans.

And, if you do, then know that you’re not alone.

In fact, this was an issue that Craig, a highly-skilled software engineer, faced as he was considering his overall financial situation.

Now, Craig worked at a cutting-edge technology company called IniTech, which specialized in developing innovative software solutions for a wide range of clients. And, in addition to a generous salary, Craig received a sizable portion of his annual income in the form of equity compensation, a common practice among tech companies, to attract and retain top talent.

Although Craig was handsomely compensated, he found himself perplexed by the complexities of equity-based compensation. While he knew that the value of his company stock played a significant role in his overall wealth, he lacked a clear understanding of all the factors that drove the stock’s value. As a result, Craig felt indecisive about whether to hold onto his concentrated company stock or whether to diversify his holdings to reduce his investment risk exposure and preserve his wealth.

Finally, one day after a watercooler discussion with a coworker that left him baffled about what was happening with his equity compensation, Craig decided that he needed to take control of his financial future by gaining a deeper understanding of what was happening with his company stock.

He believed that by comprehending the dynamics of the industry, he could better predict the near- and long-term value of his wealth. Through diligent research, Craig discovered that several factors impacted IniTech’s competitive landscape, including market share, barriers to entry, and disruptive technologies. That’s when he realized that by staying informed about these factors, he could make more informed decisions about his company stock.

Craig also learned that evaluating his employer's earnings releases was essential in understanding the financial health of IniTech. That’s why he began to closely follow the company's quarterly and annual reports, paying particular attention to key data points such as revenue growth, earnings per share, and executive guidance for future performance.

And as Craig dug deeper into his company’s financials, he realized that it would be beneficial to seek the expertise of third-party research to obtain an objective perspective on the value of his company stock. That’s because Craig understood that being an employee of IniTech might inadvertently introduce bias into his analysis, making it difficult for him to impartially assess the stock's value.

In the end, Craig's efforts to educate himself about IniTech's competitive environment and financial health, coupled with the objective insights provided by third-party research, empowered him to make well-informed decisions regarding his equity compensation. With a clearer understanding of the factors driving the value of his company stock, Craig could now confidently decide whether to hold onto his concentrated stock position or diversify his holdings to reduce risk exposure and preserve his wealth.

Internal Drivers of Company Value

Now, what Craig’s story is meant to drive home is that, all too often, individuals receive an equity award with the hope that their company's stock will simply go to the moon.

But what if it doesn't?

That’s why if you’re serious about leveraging your company stock to create your own path to financial independence, you’ll need to understand what your company stock is worth and the critical factors that can drive its price either higher or lower.

So, what is a stock worth?

Well, the value of a stock ultimately comes down to what a buyer is willing to pay for the ownership of a given firm. Over the long term, the price of a stock is primarily driven by future earnings expectations of the underlying company. And in the near term, it can be influenced by company-specific factors, like corporate leadership, industry developments, and broader changes in laws and the economy.

So, with so much space to cover regarding stock valuation, where should a newly initiated do-it-yourself stock analyst begin? Well, if you know nothing else about the value of your company stock, the very least you can do is begin by understanding your company from the inside-out.

Understanding the Role of Corporate Leadership

To start, take the time to better grasp the vision and values of your company and how your leadership team intends to take you there. This approach is essential because even the most well-funded, well-positioned firms can experience a slow death when executives fail to crystalize a vision for their organization, eventually leading to costly near-term tactics at the expense of a profitable long-term strategies.

And, so, how do you gain this understanding? Well, as a corporate insider, one of the most essential ways for you to gain insight into your company's vision and direction is by attending corporate town hall meetings.

Indeed, attending a corporate town hall can be an excellent way for you to better understand market conditions and industry trends that can impact your firm and ultimately your stock’s value. That’s because during a town hall, leadership within the organization will likely provide updates on your company's financial performance, growth initiatives, and market positioning.

For example, if your company is investing in new technologies or expanding into new markets, this may indicate an expectation by leadership of growth in those areas. And if your company is cutting back on its workforce headcount, or exiting markets altogether, it could be a sign of potential negative developments to watch.

What’s more, attending a town hall can provide you with an opportunity to ask questions and engage with company leadership. This can help you better understand the factors driving the company's performance and growth prospects. And by engaging with company leadership, you can also gain insights into the company's culture and values, which can have a long-term impact on earnings performance and stock value.

Now, attending a corporate town hall is just one way to get an insider’s view on the direction of your company and its earnings potential. So, if your company doesn’t host town halls, or does so infrequently, what you should do is pay attention to the specific messaging that your leadership is communicating during your weekly or bi-weekly team meetings.

Indeed, by staying informed and engaged with company leadership, you can be better equipped to make more informed decisions about your equity awards. That’s because, at a basic level, this knowledge can help you understand the company's strategic vision, growth prospects and more crucially, potential changes coming down the pipe.

Influence of Large Shareholders

Now, another critical component to understanding the driving value of your company’s stock is knowing who the largest shareholders are. This knowledge is essential because large shareholders can often have a significant influence over your company's decision-making processes.

Indeed, if you understand who these shareholders are, you may be able to better anticipate the direction your company will take and how it might affect your overall equity compensation.

How so?

Well, large shareholders may have a significant impact on the stock price of your company because they have a vested interest in the company's performance.

For example, if your company is a poor performer, a large shareholder may push for significant changes that could affect not just your compensation but your job security as well. And if a large shareholder decides to sell their shares, it could cause the stock price to drop and the value of your net worth along with it.

Finally, understanding who the largest shareholders of your company are can be essential if you are considering your own exit opportunities. That’s because if a potential buyer or investor is looking to acquire your company, then understanding who the largest shareholders are, and what their priorities may be, can help you make more informed decisions about whether to divest your own shares or to hold on for the long-term.

External Drivers of Company Value

So, now that you have a basic idea of how the value of your company stock is influenced by company leadership and by large stakeholders who have a direct or indirect say in the direction of your firm, let's take a moment to discuss the external factors that influence the earnings potential of your firm, and hence the potential value of your stock award.

Porter’s Five Forces

Now, one way to understand how external factors can influence the value of a company is through the lens of Porter's Five Forces.

So, what is Porter's Five Forces?

Well, it's a model that helps businesses understand the five critical factors that affect the competitive landscape they operate in and was developed by Michael Porter, a Harvard Business School professor.

Now, while there is much to be said about each of the five factors individually, at a high level, it's critical to understand that the value of your company’s stock can be affected by these forces in a few ways.

For example, if you work for a company that operates in an industry with high barriers to entry, then it likely can reduce the threat of new entrants and increase your firm’s profitability, which, in turn, can increase the value of your stock award. In a similar way, if your company operates in an industry with strong bargaining power over and buyers and suppliers, it can increase profitability and the value of your company's stock.

On the other hand, if your company operates in an industry with high rivalry among existing competitors or many substitute services exist, it can reduce profitability and the value of your company's stock.

What’s more, if your industry faces disruptive changes or the emergence of new technologies alter the dynamics of your industry, it can have a significant impact on your firm’s bottom line.

That’s why a company's success or failure to navigate these forces can have significant implications for the value of your company's stock and ultimately your equity compensation.

Understanding the Core Product and Offering

Now, while there is much that can be said about how a firm positions itself in an ever-changing competitive landscape, two areas where your company leadership has some control in how they drive earnings include 1) how they position their product and services in the marketplace and 2) the clients they choose to serve.

By understanding the trends in these two factors, you can get a high-level sense of where your company may be headed and, more importantly, the future value of your company's equity.

Indeed, from a product and services perspective, understanding your company's core offerings is essential because it can help you gain an insight into whether your firm is delivering on its vision, values and goals.

That's because a firm's vision, values, and goals serve as the foundation for its product positioning strategy. As you’ll likely recall, a vision statement outlines your firm's long-term aspirations and defines what it wants to achieve in the future. A firm's values, on the other hand, reflect its principles and beliefs, which can guide its actions and decisions. And goals provide a clear roadmap for the firm to achieve its vision.

So, how do these three elements fit together? Well, without a clear alignment between your firm's offerings and its vision, values, and goals, your employer may struggle to identify its target market and develop an effective product roadmap that meets customer needs.

That's why if your firm positions its products and services in a way that contradicts its values, it can damage its brand image and reputation. And, ultimately, a misalignment between your firm’s offerings and its vision, values and goals, can lead to poor earnings performance.

For example, a company that prides itself on sustainability and environmental responsibility should not offer products that harm the environment. And so, if a firm positions its products and services in a way that does not align with its vision, values, and goals, it risks losing customers and damaging its brand image. That’s because customers are more likely to be loyal to a brand that aligns with their values, and a misalignment can cause customers to ultimately lose trust in the firm.

Another way that a misalignment can lead to poor earnings performance is by a lack of differentiation from its competitors. What this means is that if the company you work for positions its products and services in the same way as its competitors, then it likely will struggle to stand out in the marketplace.

And that’s because differentiation is crucial in a competitive landscape, and a firm that does not differentiate itself through its vision, values and goals risks losing market share. And, a decline in market share can lead to lower corporate earnings, and hence, threaten the value of your company's stock.

Who are the largest clients?

Now, another factor to consider when it comes to the earnings ability of your employer and hence the value of your stock award is your firm's target market and its largest clients.

So, why should you care about who your company’s largest clients are?

Well, understanding who your biggest customers are can help you gain better insights into the competitive landscape, your company's strengths, and weaknesses, as well as how your employer is positioning itself in the marketplace.

Indeed, the biggest customers of a company often generate a significant portion of its revenue. Therefore, if you understand who your biggest customers are, then you may be able to better understand your company's financial stability and prospects for growth.

From this perspective, having some insight into who your biggest customers are can help you better understand their needs and preferences. This perspective can be a critical insight because it will tell you whether internal product development, marketing, or customer service initiatives are aligned with what your most valuable clients want, and your firm's ability to deliver products and services that meet their needs.

Again, when there's misalignment, there's a chance that a new entrant into the marketplace could entice your firm's largest customer away to their firm, potentially dealing a blow to future earnings and revenue growth.

Financial Metrics and Your Company’s Stock Value

A final component for understanding your company's value and how it may affect your stock award is actually taking a deep dive into its financials.

That’s because looking into the financials can help you know if your company is well-funded and has rising revenues, or on the other hand, whether your company is underfunded and revenues are in decline. And central to this insight is understanding corporate earnings.

So, what are corporate earnings?

Well, a company's corporate earnings refer to its profits after all expenses and taxes have been paid. When a company's earnings increase, it usually means the company is doing well and its stock price may increase. On the other hand, if a company's earnings decrease, its stock price may also decrease.

Evaluating Your Firm's Financials

As you're evaluating your employer's corporate earnings from one quarter to the next, there are a variety of fundamental factors that you should consider, the first of which is revenue growth.

Revenue growth is the lifeblood of a company. If your firm's revenues are consistently increasing, it's a good sign that the company is on a solid growth trajectory. However, if revenue growth is stagnant or declining, it may indicate that the company is facing challenges in growing its sales metrics.

And while revenues are important, as the old saying goes, it doesn’t matter how much you make, but how much you keep. And this is where profitability comes in. Now, this metric can be challenging to evaluate at times, especially if your company is still pre-IPO or in an early-growth phase. Even so, it's essential to look at your company's net income and gross margins over time to evaluate whether these metrics are growing.

That’s because if your company is consistently profitable, it's a good sign that your firm is well-managed and has a sustainable business model. If operating expenses are increasing faster than revenue, it may indicate that the company is not managing its expenses effectively, which could impact future earnings. However, for early-growth companies, if profitability is low now due to increased expenses, you'll need to evaluate whether this comes from investment outlays in the present that may set your company up for future growth down the road.

Another key factor to consider from a financials perspective is how your firm is funding its operations. For example, when a company issues new shares of stock to large investors to fund operations, it can dilute the firm value to existing shareholders. This means that the value of your stock award may decrease if the company issues new shares. However, if your company's earnings increase as a result of issuing new shares, the value of your stock award may also increase as well.

And, finally, as you're evaluating your firm's financials, what you'll want to consider is the trends in these key metrics. Ask yourself whether your firm is increasing revenue over time, whether rising expenses can be justified with respect to future potential sales growth, and whether additional external funding will benefit your company's long-term prospects and hence its expected future share price.

Earnings and Competitor Analysis

And while reviewing trends in your firm's financials certainly is useful, comparing results to industry competitors can often provide more insight into whether your company is ultimately delivering increasingly higher value to shareholders, including yourself.

You can do this by taking a moment to review the financials of your firm's top three competitors. Then, as you do the work, consider the competitive landscape, industry- and company-specific factors and market trends, to evaluate how they may be affecting your company’s share price.

For instance, when it comes to the competitive landscape, take the time to identify your company's main competitors, and evaluate how they’re performing. Then ask whether they’re gaining market share or losing it. What are their strengths and weaknesses, and how does your company compare? By asking these questions, you’ll not only gain better insights into the competitive landscape, it can also help provide valuable awareness into your company's relative performance.

Now, depending on the industry, there may be specific factors that affect financial performance from one industry to the next. For example, in the technology industry, innovation and R&D spending may be critical to maintaining a competitive edge, especially for early-stage companies in their high-growth phase. In contrast, earnings for firms in the pharmaceutical industry likely will be affected by factors like regulatory approvals and patent expirations.

And with respect to market trends in the competitive landscape, ask yourself whether sales and profits are growing across the industry, or whether they’re in decline. If the industry is growing, it's important to consider whether your company is keeping up with the overall industry growth rate. And, if the industry growth rate is declining, it's also essential to consider whether your employer is able to maintain its respective market share and profitability in such an environment.

Finally, it's critical to take a long-term view when evaluating the performance of your company and its competitors. Consider the industry trends and the competitive landscape over the next several years. And then ask yourself, “how is my company best positioned to take advantage of opportunities and overcome challenges in the industry?” Based on your response, evaluate how your company’s strategy compares to its competitors in terms of its long-term prospects.

Overall, when evaluating the performance of your company and the competition in the same industry and marketplace, you should consider a variety of factors that can affect sales growth and ultimately, profitability.

Finding Your Employer’s Financials

So, with all this talk about performing a financial analysis on your company stock, you may be asking yourself, “where exactly can I find this information?”

Publicly Held Companies

Well, as a first step in evaluating your firm's financials, you should check if the company you work for is required by law to disclose certain financial information.

If your company is publicly traded, it likely will file periodic reports with the Securities and Exchange Commission (SEC), which are publicly available and can be accessed in many cases through your company's website or at the very least, through the SEC's EDGAR database.

These reports contain financial statements and other information that can help you understand your company's financial performance and its financial prospects.

Privately Held Companies

Now, if your company is pre-IPO or privately held, it may still be required to provide certain financial information to its shareholders or employees. You can check your employment contract or equity compensation plan to see if it includes provisions for the company to provide you with certain financial information, and if so, where you can find it.

One way to determine the value of your privately-held stock award is to review your firm's latest 409a valuation. Now, a 409a valuation is a type of valuation performed for privately held companies to determine the fair market value of your firm's common stock. This valuation is a filing more often than not required by the Internal Revenue Service (IRS).

And a 409a valuation typically involves an independent valuation firm, which will consider a range of factors when determining the fair market value of your company's common stock. These factors may include the company's financial performance, growth prospects, market conditions, and the value of comparable companies.

Now, if your company is not legally required to disclose financial information in a public way, you can try to request financials from your company directly. To do this, try speaking with your manager or human resources department to see if there is a process for obtaining this information. If there is no established process, in certain instances, you could request a meeting with a senior executives and, depending on your standing with your firm, discuss your concerns and request additional information at that time.

Now, it’s critical to keep in mind that privately held companies may not provide the same level of financial disclosure as public companies, therefore, it may be more difficult to obtain accurate and up-to-date financial information. And in some cases, you may need to rely on other factors, such as the company's industry and market conditions, to estimate the value of your stock award.

Third-Party Analyst Evaluations

One final way to better understand your company's financials and what it may mean for the value of your stock award is to review analyst opinions on the financial health of your firm. Indeed, reviewing third-party analyst evaluations of your company stock is essential because it can provide you with an independent perspective on the value of your company stock and its growth prospects.

These evaluations are typically conducted by financial analysts who specialize in researching and analyzing specific companies and industries and who also have access to a wide range of financial data and market trends. What's more, third-party analyst evaluations can help you objectively understand the risks and opportunities associated with your equity awards and help you make more informed decisions about your company holdings.

So, where can you find these third-party reports?

Well, you can generally start your research by visiting financial news websites like Yahoo Finance or Bloomberg news. These resources can in many cases provide you with access to research reports and analyst ratings that offer valuable insights into your company's financial performance and growth prospects.

Another option is to seek out research reports from your brokerage firm. That’s because many brokerage firms offer research reports and analyst ratings as a service to their paying clients. And if your broker offers such a service, then these reports can be another useful tool to use if you're looking to stay up-to-date on the value of your company stock and market trends.

Now, if you're really dedicated to understanding the value of your company's stock, and want an objective opinion but don’t want to take the time to search for it, then in many cases you can work with an independent research firm to gain access to its reports.

Either way, gaining access to third-party research can save you a lot of time and hassle as you’re doing the work to better understand the value of your company stock.

What Drives the Value of Your Employer’s Stock?

We’ve covered a lot of ground here today in terms of the steps you can take to evaluate the value of your company stock and how it may ultimately affect your stock award. And, if you’re not sure where to start, take a lesson from Craig and how he applied some of approaches we discussed here today to better understand the value of his company’s stock.

To start, Craig's journey to gaining a deeper insight of the value of IniTech’s stock was marked by first understanding whether the work his firm was doing was aligned with his leadership team’s vision, values and goals for the company.

Then, he took the time to explore the competitive environment to understand factors like market share, barriers to entry, and potentially disruptive technologies, that could significantly impact his company's future earnings performance.

Next, Craig began to closely monitor IniTech's earnings releases, evaluating crucial data points like revenue growth, earnings per share, and management guidance. This information helped him gain insight into the financial health of the company and assess its growth prospects.

Lastly, Craig utilized third-party research to obtain an unbiased opinion on the value of IniTech's stock. By integrating external analysis with his own understanding of the company's competitive landscape and financials, Craig was able to make more informed decisions about his equity compensation.

Taken together, these steps ultimately enabled Craig to confidently evaluate the benefits and risks associated with his company stock. And armed with a comprehensive understanding of IniTech's earnings prospects and competitive position, Craig could now make a well-informed decision about whether to hold onto his company stock, or diversify his holdings as he took one step closer to becoming the master of his financial independence journey.

by Peter Donisanu

Time for a Refresher: Don’t Leave Restricted Stock on the Table

Imagine receiving an award from your employer for the value that you bring to the table, but the payout doesn't come for months or even years down the road. If you work in the tech industry, or otherwise receive a stock award from one year to the next, then you'll likely understand how exciting and at the same time, how bewildering it can be to receive what can be a significant portion of your income doled out over an extended period of time.

That's why understanding this often complex form of incentive compensation is essential to making wise choices with your income and to avoid leaving money on the table.

Now, when it comes to incentive compensation, restricted stock is one of the most commonly granted forms of income issued to individuals employed by publicly traded tech companies. And, if you're one of these fortunate individuals, chances are that you're likely in line for a new stock award or refresh grant as we roll into this year's performance evaluation and bonus season.

And because these awards can make up a sizable portion of your overall income, it's essential to understand what you should be aware of when you receive your grant, what happens when your grants vest, and your options for preserving your wealth and income.

Before we dive in on these critical points, let's take a step back and talk through some definitions regarding restricted stock that you should be familiar with.

What is Restricted Stock?

At its basic level, restricted stock is the ability to own equity in the company you work for without your need to pay for the stock itself. And restricted stock is a form of compensation because when you satisfy the conditions imposed by your company, you often receive the shares free and clear.

When it comes to terminology, you'll want to understand the difference between restricted stock units and restricted stock awards.

So what are Restricted stock units? Well, a restricted stock unit (or RSU) is a right to receive company shares after you've satisfied some conditions imposed by your employer. These criteria might include hitting a certain sales quota, department performance goal, or, what's most common for many of you out there, is simply continuing to work for your employer for an agreed amount of time. The key takeaway here is that you only own the shares once you've met specific criteria defined in your grant. It's like an unfunded promise by your employer that you'll receive company stock at some point in the future once you achieve certain milestones.

And so, how are RSUs different from restricted stock awards? Well, a restricted stock award (sometimes called a restricted stock grant) provides essentially the same benefit as an RSU. However, the key difference is that with a restricted stock award, shares are transferred to you at the time of the grant but are subject to forfeiture if you don't meet specific performance criteria. This could include, for example, leaving your company before your shares vest. What's more, these shares are typically held in a third-party escrow account and are released to you as conditions for vesting (or ownership) are met.

Now, there's one more definition of restricted stock out there, and that's GSUs.

Now, GSU stands for "Google Stock Units," a form of equity compensation that Google offers its employees. GSUs represent a promise to receive a specified number of shares of Google stock at a future date, typically after a vesting period. A Google employee's typical GSU vesting schedule is four years, with 25% of the total grant vesting each year. This means that after the first year, an employee would have 25% of their GSUs vested, after the second year, 50% would be vested, and so on until all of the GSUs are vested after four years.

The main difference between Google's GSU vesting schedule and traditional restricted stock vesting schedules is that Google offers a "graduated vesting" schedule, which means that GSUs vest on a quarterly (and sometimes monthly) basis after the first year of employment. This means that if you stay with Google for at least one year, you would receive the first 25% of the total grant, and then the remaining 75% would vest on a quarterly (or again monthly) basis over the next three years.

It's worth noting that specific vesting schedules for restricted stock can vary depending on the company and the individual grant. What this means, plain and simple, is that until your stocks vest, you don't have full ownership of it yet. Indeed, it's essential to carefully review the terms of any restricted stock grant to understand the specific vesting schedule and other conditions that may apply. Either way, whether you receive a new award or refresh grant this bonus season, be sure to familiarize yourself with the type of restricted stock you received and the vesting schedule so that you can make the most of your equity awards.

Restricted Stock and Taxes

Another topic related to your restricted stock that you'll likely want to familiarize yourself with is taxes.

To our earlier point, restricted stock is the ability to own equity in the company you work for without your need to pay for the stock. Even so, the tax man will want to get his fair share once you get paid.

Now, when it comes to paying Uncle Sam, the tax consequences of RSUs (and GSUs) are relatively straightforward. For example, when the shares are granted, you typically do not have to pay taxes on them. That's because, in many cases, there is a substantial risk of forfeiture for not meeting the vesting criteria. Therefore, you're typically not taxed on the grant itself, but rather when your awards actually vest.

At the point when your restricted stock vests, the value of the shares received is considered income, and you'll likely pay tax on the vested shares at an ordinary income tax rate. How much you will pay all depends on your individual tax bracket. And the more of your income that comes from restricted stock, the higher you'll likely move in marginal tax brackets.

When it comes to paying taxes, some employers may offer to withhold a certain percentage of your vested stock to pay what's due to state and federal authorities. While this approach is helpful, in many cases, withholdings can often be too low, which can lead to a surprise tax bill at the end of the year. That's why it's essential to understand your current income and tax situation, especially if you're a single or a high earner, to understand whether to increase your tax withholdings as shares vest or to prepare to make estimated quarterly tax payments.

One benefit of restricted stock is that you can defer the distribution of shares until a later date. This allows you to benefit from the potential growth in the stock while you're waiting to receive the shares. Deferring the distribution of shares can also help reduce the amount of taxes you must pay when the shares are distributed, as you could be taxed at a lower rate.

A situation like this may apply if you anticipate your earnings in your retirement years to be substantially lower than in your current working years. Either way, consider whether it would be advantageous to choose a future payment date to coordinate the timing of tax recognition with your overall exercise plan.

What to Do with Vested Stock

So, once your restricted stock vests, what happens next?

Well, when your restricted stock vest, you'll either receive a cash settlement or stock settlement. That's why reviewing your equity grant is essential to getting a good handle on how your stock award will be paid out.

If you receive a stock settlement, then for all intents and purposes, that restricted stock is now company stock you own free and clear. Once it's transferred to a brokerage account, you can hold onto it, sell it, or borrow against the stock. One option many individuals choose is to sell their shares immediately as they vest to lock in gains and avoid future market volatility or unwanted tax liabilities from the appreciation of their company shares.

Now, if you plan to hold onto your stock or trade your recently received shares, you'll want to be aware of any blackout periods, trading windows, or other limitations on your ability to sell shares. For example, your company may enter blackout periods during earnings season and ask employees not to sell company stock. That's why it's essential to review your stock grant and check with your benefits administration team for clarification on blackout periods.

Now, if you want to sell your restricted stock without the hassle of keeping track of blackout periods and trading windows, consider a 10b5-1 plan.

A 10b5-1 plan is a pre-established trading plan that allows insiders, such as corporate officers or employees who hold restricted stock, to sell a predetermined number of shares at predetermined times. The plan is designed to ensure that the sale of shares is conducted in an orderly and transparent manner and that the individual selling the shares is not privileged to any material, nonpublic information at the time of the sale.

The key advantage of a 10b5-1 plan is that it allows insiders to sell shares on a regular basis without raising concerns about insider trading or other ethical issues. The plan is set up in advance and based on a predetermined formula that considers various factors, such as the employee's financial needs and the performance of the company's stock. Once the plan is in place, you cannot alter it or decide when to sell shares unless you voluntarily decide to end your participation in the plan itself.

How does a 10b5-1 plan work for selling restricted stock?

To establish a 10b5-1 plan for selling restricted stock, you'll want to work with your employer's HR department to get details on participating in the plan. The plan will specify the number of shares to be sold, the timing of the sales, and the price at which the shares will be sold. The plan will also include provisions to ensure that you do not have access to any material, nonpublic information at the time of the sales.

A plan administrator, typically in cooperation with your broker, executes the trades according to the established plan. The trades, more often than not, are conducted on a predetermined schedule, and you'll have no ability to make decisions about when to sell the shares. Again, this approach helps to ensure that the sales are conducted in an orderly and transparent manner and that there is no appearance of impropriety.

Finally, if a 10b5-1 seems too complicated and doing nothing with your shares seems like a good enough plan, you may want to think again.

That's because while we hope that the price of your company stock will rise over the long run, you'll likely receive little financial benefit from shares that fall in value after vesting in the short run.

How so? Well, let's look at an example:

Let's assume that you have an effective tax rate of 25%, you're the recipient of a restricted stock award that settles in stock, it's the end of the year, $100,000 worth of your award has just vested, and your employer withholds enough stock to cover all of the tax related to this award.

At this rate, your $100,000 award nets you $75,000 worth of company stock after-tax.

So far, so good, right?

Well, if you do nothing with the stock, its value will either rise or fall with the markets.

So, let's assume for a moment that current market conditions today are similar to what we experienced in 2022 and the value of your company stock falls by 25%.

Where does that put you?

Well, if you decided to hold onto your company shares in the down market, the value of this holding could be worth $56,250. The downside here is that if you were planning to use that money for the downpayment on a new home, to pay for childcare expenses, or otherwise supplement your living expenses for the year, then you'd likely be down nearly $20,000 for the year.

While selling your restricted stock outright is one option to avoid this outcome, so is diversifying your holdings into a basket of low-correlation assets to avoid some of the risks of holding a concentrated stock position. And if your plan was to hold your company stock for the long term, then having an appropriate cash management plan in place would also have helped avoid unnecessary shortfalls for your big-ticket spending needs.

Either way, having an appropriate action plan in place after your restricted stock vests can help you preserve your wealth and avoid unnecessary headaches down the road.

Make the Most of Your Restricted Stock this Bonus Season

Make no mistake, restricted stock is likely to be a valuable component of the total compensation that many employees at publicly traded tech companies receive. By providing you with an opportunity to benefit from the growth of the company, offering some tax benefits, and serving as a retention tool, restricted stock can serve as a significant portion of your overall compensation package if you work at one of these companies.

Even so, the devil is in the details when it comes to your awards. That's why you'll want to evaluate your stock plan to understand the terms of your grant agreement when you receive your award. More specifically, you'll want to pay particular attention to the vesting schedule and the conditions that need to be met for the restricted stock to vest.

At the same time, you'll want to be aware of any tax implications associated with your restricted stock, as they will be subject to taxation when they vest. It's also vital to understand any restrictions that may be placed on the restricted stock, such as the inability to sell or transfer the shares until certain conditions are met.

When it comes down to it, however, taking these steps will help you make the most of your restricted stock this bonus season, but most importantly, it will bring you one step closer to mastering your journey to financial independence.

by Peter Donisanu

4 Simple Ways to Reduce Business Expenses in Uncertain Times

In an era of rising interest rates and falling business sentiment, the consumer market has been anything but normal, causing many businesses to scramble in response. Even as time has progressed, a survey of CFOs indicated that the financial impacts of inflation and higher borrowing costs have consistently been a top concern.¹

If your company needs to contain costs in order to achieve financial stability - during a time of extreme instability - these four strategies can be used to help consolidate your spending and protect the longevity of your business.

Way #1: Switch to Remote Work

Over 60 percent of employees have transitioned to working from home since 2020.² Remote work has experienced a huge surge in popularity, and for good reason; it can be a big saver when it comes to resource expenses, and it often goes hand-in-hand with implementing flexible work schedules and, as a result, different payroll procedures.

If your business is in a position where it can adapt to remote work, take the opportunity to do so. This will drastically reduce employee-related expenses and can also serve as a segue into other cost-saving actions.

Other Employment Options

No one wants to be forced into the position of letting employees go. If an economic downturn puts your specific industry in a tight financial situation, or if you currently can’t conduct substantial business remotely or in-person, consider saving jobs by suspending benefits or adjusting some employees to part-time.

Way #2: Eliminate Unnecessary Expenses

If your company has made significant adjustments, such as transitioning to remote or partly remote, chances are there are a lot of expenses you don’t need to be paying for anymore.

Office Supplies

Don’t let the excuse of “stocking up” stop you from cutting costs on office resources. This includes everything from office equipment or space to simple expenses, such as toiletries or paper supplies.

Office Services

Make a point to round up all your regular service expenses and decide what you need and what you can forgo, at least for the time being. Think about necessary utilities such as heat, water, and electricity, but also don’t overlook other recurring subscriptions you may have, such as internet, phone, or recreational services.

Travel or Parking

For most industries, travel expenses moving higher after a brief pause. Before diving back into in-person meetings, consider whether virtual meetings are still a suitable way to make the right connections with your clients and consider curtailing travel spending where possible. Take further advantage of this by reducing parking expenses for parking spots you may not be utilizing. If you’re still having employees travel, it might be time to evaluate if it’s necessary or not.

Way #3: Take Advantage of Flexible Billing

Many suppliers, banks and landlords are still flexible and understanding during this time of economic uncertainty. It may be worth it to at least reach out and ask what options may be available to you. They may allow you to delay certain payments or take out a loan until your business is in a better financial position.

If you take this route, be sure that you fully understand the terms of your agreement. The last thing you want is to get stuck in a worse financial position down the road.

Way #4: Rework Your Marketing

84 percent of marketers have improvised new marketing strategies in the past few years.³ You should try to reduce marketing expenses that no longer offer an advantage, such as an advertisements at large in-person events. This doesn’t mean, however, that you need to sacrifice or abandon your marketing efforts.

Get creative and dive into digital marketing. More people are on the internet now than ever, and if you leverage it correctly, you may just build your company’s presence and generate some more revenue.

Don’t lose hope if your company’s financial outlook is unclear. Simply continue to focus on your growth, find new ways to market your product or service and cut costs where you can.

by Peter Donisanu

Working Remotely? 7 Tips For Making Your Life Easier

In an effort to slow and stop the spread of COVID-19, people across the globe are urged and ordered to stay home and practice social distancing. As thousands of companies around the world make the switch to remote work, it can take some time for employees to adjust to working from home full-time. Luckily, there are ways to make remote work easier on yourself, your employer and your coworkers. Below we’re offering seven useful tips you can use to make the most at your new office space.

Tip #1: Set Up a Workspace

Try to create a designated “office” - a place where you can work with minimal distraction. This could be a spare bedroom, dining room, etc. If it’s not possible to separate yourself from others during the workday, make sure your roommates or family members respect your work area, wherever it may be a table, couch, etc. Remind others in your household of your designated working hours to maximize your time with as few distractions as possible.

Tip #2: Pay Attention to Your Time

It can be easy to work late into the night, especially since there isn’t a physical office building to leave. Unless you have a tight deadline or urgent task at hand, try to work the same hours that you would normally if you were at the office. Practice making an intentional effort to end the workday at a reasonable time. Turn off your computer, leave the room you were working in and do whatever you need to in order to physically and mentally separate yourself from work.

Make time for scheduled breaks throughout the workday where you can get up and stretch or walk around. This will help you feel better both physically and mentally throughout the day.

Tip #3: Communicate With Your Team

When you work in an office, you can just walk into someone’s office or pop over to ask a quick question. When working from home, that isn’t the case. Make sure you’re being responsive to emails and messages in a timely and efficient manner. If your company didn’t already have an instant messaging system in place, now is the time to suggest implementing one. Some common workplace instant message software includes:

Slack
Google Hangouts
Troop Messenger
Spark

Don’t forget you always have the option to resolve issues quickly with a phone call as well. If you manage a team of your own, make your communication expectations clear to employees.

Tip #4: Dress “Professionally”

While you don’t need to put on a suit or slacks like you would wear at the office, it’s still important to get dressed in some fashion every day. Make sure your clothes are presentable since you will likely be on calls and video chats with coworkers or clients. While it’s tempting, try not to simply roll out of bed and start working. And when possible, do not work from your bed. It’s important to separate where you sleep from where you work.

Tip #5: Create a System to Share Documents

You may already have a way to quickly share and access files at your company, but if you don’t, now is the time to set something up. It’s important to consolidate and organize your files, not just have them scattered throughout inboxes or instant messages.

Some file-sharing platforms to consider using include:

Dropbox
Box
Google Docs

Tip #6: Take Time for One-On-One Check-Ins

Even if it’s only for five minutes, it’s still important to have a quick check-in with your coworkers, employees or managers. It helps everyone feel as though they’re on the same page and still connected with one another.

Tip #7: Ask for Feedback

It’s important to ensure that everyone, yourself included, is adapting well to working remotely. If you’re a manager or boss, check in with your employees and ask what you can do to make their lives easier. If you’re an employee, ask your manager if you’re meeting their expectations in regards to communication and productivity.

It can be hard to work remotely at first, especially if it is something that you are not used to. Let these tips be a guide for creating a successful work environment for you and your coworkers.

by Peter Donisanu

Year-end Planning: 20 Things You Can Do to Organize Your Finances

It's November and there’s not better time than the present to get your financial house in order. Indeed, we're in that sweet spot before things begin to wind and just ahead of a busy holiday season.

While preparing a comprehensive financial plan is essential to financial independence mastery, today we're talking about doing the simple stuff: reviewing and making last-minute retirement savings contributions, fine-tuning your investment portfolio, reviewing your spending plan, and some general housekeeping regarding your equity compensation.

Taking a few minutes to check these items could put you on track to starting 2023 on the right track.

Here are 20 things you can do to organize your finances before the end of the year:

Rebalance Your Investment Portfolio
Top Off Your Child's 529 Account
Maximize Your IRA Contributions
Consider a Backdoor Roth Conversion
Rollover Your Old 401k/403b
Tax Loss Harvesting
Review Your Restricted Stock Concentration
Review Equity Compensation Tax Withholding
Review Expiration Dates for ISOs
Sell ISOs that are Down in Value
Evaluate Your Expenses and Create a Spending Plan
Review Your Fixed Income Needs
Look Over Your Credit Report
Set a Budget for Holiday Spending
Review your Employer Benefits Statement
Spend Down Your Flexible Spending Account
Review Your Estate Plan
Update Your Designated Beneficiaries
Review your Insurance Policies
Review Your Emergency Savings Need

1. Rebalance Your Investment Portfolio

If you still need to do so, now may be a good time to rebalance your investment portfolio. To start, ensure that you've appropriately evaluated your risk tolerance and identified a suitable diversified asset allocation strategy that suits your goals, needs, and objectives.

With your long-term strategy in mind, sell investment holdings above your target allocation, and use the proceeds to add to positions where your holdings are underweight.

Doing so may ensure that you're not taking more investment risk than you're already comfortable with while ensuring that your overall portfolio is aligned with your long-term investment goals.

2. Top Off Your Child's 529 Account

Depending on your circumstances, a 529 account may be an excellent way to save for a child's college education expenses. If extra cash is available, try topping off your child's 529 if you still need to maximize contributions for the year.

While there is no limit for annual contributions, the gift tax exclusion for the year is $16,000 per child ($32,000 for couples).

3. Maximize Your IRA Contributions

If you've maxed out your 401k/403b and still have some cash in savings, consider contributing money to your IRA. Putting money in an IRA allows your money to grow tax-advantaged, potentially boosting the overall value of your account compared to a taxable brokerage account.

In 2022, your total contribution limit to traditional and Roth IRAs can be at most $6,000 ($7,000 if you're age 50 or older). And be mindful of income limits before making contributions.

4. Consider a Backdoor Roth Conversion

If you've maxed out your 401k/403b and are otherwise not eligible to contribute to a Roth IRA this year, consider a Backdoor Roth Conversion.

As you'll recall, the way a Roth conversion works is that the government gets its share of your money now (compared to being taxed when funds are withdrawn years later), allowing investments in a Roth to grow tax-free. When it's time to take the funds out of the account, the money comes out tax-free.

What's more, a Roth account is not subject to required minimum distributions (RMDs), reducing unnecessary cash distributions in retirement.

5. Rollover Your Old 401k/403b

If you've left a job this year, go back and ensure you have a plan for that old 401k or 403b. Generally, you have two options for your money with an old employer retirement savings plan.

First, if your new employer's plan allows it, you can move the funds from your old retirement plan into your new plan.

Your second option is to open an IRA with a trusted advisor and transfer the funds over to your individual account. As long as the transfers are custodian-to-custodian, and you avoid holding back funds from the withdrawals, the transfer likely will be treated as a non-taxable event.

6. Tax Loss Harvesting

We've experienced arguably one of the most volatile financial markets since the Global Financial Crisis in 2008. As a result, you're likely holding onto losses in your investment portfolio that could provide you with a tax benefit this year. And that's where tax loss harvesting comes in.

Tax loss harvesting is the process of offsetting long-term capital losses against gains. This process applies to taxable investment accounts and involves identifying and selling holdings in a loss position to offset gains in other holdings. Before you implement tax loss harvesting in your portfolio, beware of wash-sale rules that could disqualify you from recognizing the benefit of tax loss harvesting.

7. Review Your Restricted Stock Concentration

Do you have a plan for your restricted stock? It's quite common for restricted stock recipients to simply allow their vested awards to accumulate in their employer plan's brokerage account.

Market volatility this year, particularly in tech-related sectors, is an important reminder of why investment diversification is essential to preserving your wealth for the long term. That's why you'll likely want to take a moment to review your company stock holdings and develop a plan to reduce your risk exposure.

8. Review Expiration Dates for ISOs

If you've recently left a job where you had ISOs, or are approaching your ten-year anniversary with an employer who has offered this benefit to you, now may be the time to evaluate the expiration date for your stock options.

Review expiration dates for outstanding stock options and deadlines for option exercises. If you've left a job in the past year, go back and review your previous benefits and ensure that you're not leaving money on the table.

9. Sell ISOs that are Down in Value

If you have vested ISOs that have fallen in value this year, now may be an excellent time to exercise those options. Remember, if you plan to hold your company stock for the long term, you may be subject to the Alternative Minimum Tax (AMT) when you exercise your options and don't immediately sell your holdings.

One way to lower your AMT due is to exercise your options when your ISOs' fair market value (FMV) declines, narrowing the spread between the FMV and strike price of the option.

10. Equity Compensation Tax Withholding

Review your withholding rate for equity compensation, such as restricted stock or stock options. If your employer has set your flat withholding rate for supplemental income (equity compensation) at the 22% standard rate, you'll likely need to come up with cash to pay taxes due this coming April.

Nevertheless, to avoid underpaying taxes next year, you can change your withholding rate by updating your W-4 form through your employer's HR system.

11. Evaluate Your Expenses and Create a Spending Plan

With the holiday season just around the corner, now may be a good time to review your spending trends to evaluate whether your spending is aligned with your long-term financial planning goals.

More specifically, take a close look at your discretionary spending (outside of insurance, mortgage, utilities, etc) and look for areas where your spending may be inconsistent with your overall plan for the year.

12. Review Your Fixed Income Needs

If you're already Financially Independent and living off of your savings, now may be a good time to review your anticipated spending need for the coming year. This evaluation is crucial given that inflation has run well above its 2% average over the past year.

This means that your living expenses will likely be higher in the coming year, and so you'll want to ensure that your current savings distribution is sufficient to meet your lifestyle needs without derailing your retirement plans.

13. Look Over Your Credit Report

A best practice we recommend around here is reviewing your credit report no fewer than once per year. And there's no better time than year-end to check your credit report. Pulling your credit report will not affect your credit score, and you can typically download a copy of your credit report for free from either of the three major credit reporting services (Equifax, Experian, and Transunion).

You want to look for suspicious activity, like a new account that you may not have opened or balances on cards that may have been dormant. If you find inconsistent activity on one or more of your accounts, call the reporting institution (bank, credit card company) to get more information. If you feel that the activity reported is inaccurate, you can file a dispute with each reporting agency to get your report corrected.

Either way, check your credit report to gain some peace of mind that your financial accounts are secure and in good order.

14. Set a Budget for Holiday Spending

With Christmas and the holidays right around the corner, many individuals may be tempted to put all spending on their credit cards and deal with the balances in the new year. More often than not, however, spending blindly might leave you with debt that you have to deal with all of next year.

That's why it's essential that, before heading into your holiday spending routine, you set limits you're your spending. One way to do so is to list all the people you want to purchase gifts for this year.

Track this list on your phone, in a notepad, or in a spreadsheet. Then, set a budget for each individual. Tally up the total amount you plan to spend this year and ask yourself, "do I feel comfortable spending this much money?" If the answer is no, consider revising your list. Either way, move forward with a spending plan and stick to your budget.

15. Review your Employer Benefits Statement

The end of the year is typically when most employers offer their annual enrollment period. As you head into this time, consider whether you've experienced life changes or anticipate major life changes in the coming year.

Then, take a moment to review your elections and evaluate whether your medical/dental/vision plan, related deductibles, and out-of-pocket expenses are consistent with your current lifestyle.

You'll also likely want to review your group insurance benefits. For example, your employer may offer optional life or disability insurance coverages above and beyond the basic plans you may already be enrolled in.

Many employers offer an opportunity to make last-minute changes in December if you missed your window to change your benefits elections. Either way, review your benefits to understand your coverages for the upcoming year.

16. Spend Down Your Flexible Spending Account

A flexible spending account (FSA) is a limited savings vehicle offered by some employer-sponsored medical plans that allow workers to set aside funds to pay for medical expenses on a pre-tax basis.

While the tax benefits give you more money towards paying for doctor's visits or supplies, the downside is that the account is typically a use-it-or-lose-it situation.

If you have a good chunk of change in your FSA, now may be the time to schedule a visit with a care provider for a check-up, buy a new pair of glasses, or stock up on medical supplies before the money is lost for good.

Here's one list of FSA Eligible Expenses: https://www.wageworks.com/takecare-mynewfsa/healthcare-fsa-carryover-overview/eligible-expenses/

17. Review Your Estate Plan

Estate plans aren't just for the mega-rich. They're relevant to most individuals and, at the basic level, include a Will, Healthcare, and Financial Powers of Attorney.

At this time of the year, you'll want to consider putting together your estate plan. Preparing your estate plan can be as simple as answering:

where will your assets go should you and your spouse pass unexpectedly and
who will be responsible for managing your financial affairs when you're unable to do so yourself.

If you already have an estate plan, now is an excellent time to look it over. Ask yourself whether you've experienced any life changes that may warrant an update to your estate plan.

At the same time, review your designated agents (executor, powers of attorney) and determine whether the individuals you've elected to manage your financial affairs are still appropriate, given your current circumstances.

18. Update Your Designated Beneficiaries

You can designate beneficiaries for your various financial accounts outside of an estate plan. Such designations include elections in your employer-sponsored retirement plan (401k/403b), IRA, and life insurance policies.

Additionally, titling your bank account with your spouse or partner can help you shorten the estate planning process and simplify financial choices when needed. Take the time to review the beneficiaries of your various financial accounts and make updates where necessary.

19. Review your Insurance Policies

Got a few extra minutes on hand? If so, now may be the time to evaluate your property and casualty premiums and shop around for some savings.

For example, many firms offer discounts for package policies that include homeowners and auto policies combined at one insurance company. As you shop around, ensure that your coverage limits reflect your assets and lifestyle. While you don't want to be underinsured, you may be paying for coverage already offered by an existing plan, like your employer's group policy.

Also, take the time to evaluate other coverages you may have yet to consider. For instance, if you have children, a term life insurance policy could be beneficial to providing your family extra financial protection and peace of mind. An Umbrella Policy can also help you avoid the financial setbacks related to potential lawsuits if someone were to get injured on your property.

20. Review Your Emergency Savings Need

Do you have money saved for a rainy day? Maybe you do, but do you have enough money saved to cover an unexpected loss of income?

Whether your furnace goes out or if your car is out of warranty and you have an unexpected expense, ensure that your savings are adequate to cover unexpected expenses.

How much should you have saved? The actual amount likely will vary from household to household, but one rule of thumb we use is having enough money saved to cover six months of living expenses.

At the very least, use this time to ensure that you have set aside enough money to cover the unexpected as you look ahead into the new year.

Next Steps

Certainly, there are many things to keep you busy heading into the holiday season. Nevertheless, before things get hectic in the coming weeks, my challenge to you is to identify at least three of the above items to tackle before the holiday hustle distracts you from your financial goals. You can spend as few as 90 minutes over the coming month working through these items. And yet every little step moves you one step closer to mastering your journey to financial independence.

by Peter Donisanu

The World's Best CEOs are Reading These Top 5 Books

The most successful people in the world are avid readers. Whether you read for fun or to gain knowledge, books provide insight, inspiration and perspective. Here are the top five books that the world’s best CEOs are reading to add to your reading list!

Book #1: The End of Power, Moisés Naím

The End of Power written by Moisés Naím summarizes how power is declining within leaders and institutions. The main theme of the book is that today, in the 21st century, it is becoming easier to get power, but harder to keep it and use it to influence others. When Mark Zuckerberg began his “Year of Books” challenge in 2015, where he decided to read a new book every two weeks, he started with this one.

Book #2: Competing Against Time, George Stalk

Apple’s CEO Tim Cook recommends Competing Against Time to his colleagues. This book discusses how time management is a key source of competitive advantage. Today, time can be regarded as the fourth dimension of competitiveness, and it’s becoming increasingly important that companies have flexible systems. The authors George Stalk and Tom Hout support their claim with research from various Japanese and American companies that have been successful in time-based strategies.

Book #3: The Charisma Myth, Olivia Fox Cabane

The Charisma Myth is written by Olivia Fox Cabane, and Cabane argues against the myth that charisma is an inborn quality that you either have or you don’t. Cabane says that charisma, in fact, can be learned. Moreover, you don’t need to change your personality to be more charismatic, you can engage in behaviors that fit within your current personality. This book is a guide that teaches you how to become more inspirational and influential.

Book #4: Portfolios of the Poor

Portfolios of the Poor gives an account of those who live on an average of $2 or less, which is nearly 40 percent of the world’s population. Despite this adversity, these people strategically manage their money and are able to find solutions to their financial problems. This book contains interviews with impoverished villagers, and their stories are not only surprising but also inspirational. Mark Zuckerberg recommends this book as it gives insight into lives that most of us may not know about.

Book #5: The Art of Happiness

The Art of Happiness is a book that teaches us how to find peace amidst everyday anger, loss and anxiety. Jeff Weiner, the CEO of Linkedin, learned the true meaning of compassion from reading this book and uses it to shape his management philosophy. This book is uplifting and teaches you how to achieve long-lasting happiness.

by Peter Donisanu

Compensation & Benefits

Understand Why You Haven't Left

When Our Emotions are in the Driver's Seat

Understanding How Emotions Drive Action

Evaluate the Costs of Standing Still

Cost: Career Stagnation

Cost: Financial Stagnation

Cost: The Emotional Toll

Break Free from Your Stagnant Role

Start with Self Reflection

Tap into and Grow Your Network

Mentorship as a Change Catalyst

Why You Should Walk Away from a Less than Ideal Job

Before You Open the Benefits Book

Review Your Usage

Don't Just Look at Costs, Consider Value

How to Avoid Common Potholes

The Hidden Treasures of Benefits

The Clock is Ticking

How to Evaluate Tradeoffs Between Various Benefit Options

Step 1: Prioritize

Step 2: Evaluate

Step 3: Research

Step 4: Select

The Four-Step Approach in Practice

Healthcare Plans

Tackle Open Enrollment with Confidence

The Power of Becoming Yourself

Create a Vision of Who You Want to Become

Execution: More than Just a Dream

Take Your Skills to the Right Arena

You Are Your Single Best Investment

Internal Drivers of Company Value

Understanding the Role of Corporate Leadership

Influence of Large Shareholders

External Drivers of Company Value

Porter’s Five Forces

Understanding the Core Product and Offering

Who are the largest clients?

Financial Metrics and Your Company’s Stock Value

Evaluating Your Firm's Financials

Earnings and Competitor Analysis

Finding Your Employer’s Financials

Publicly Held Companies

Privately Held Companies

Third-Party Analyst Evaluations

What Drives the Value of Your Employer’s Stock?

What is Restricted Stock?

Restricted Stock and Taxes

What to Do with Vested Stock

Make the Most of Your Restricted Stock this Bonus Season

Tip #1: Set Up a Workspace

Tip #2: Pay Attention to Your Time

Tip #3: Communicate With Your Team

Tip #4: Dress “Professionally”

Tip #5: Create a System to Share Documents

Tip #6: Take Time for One-On-One Check-Ins

Tip #7: Ask for Feedback

1. Rebalance Your Investment Portfolio

2. Top Off Your Child's 529 Account

3. Maximize Your IRA Contributions

4. Consider a Backdoor Roth Conversion

5. Rollover Your Old 401k/403b

6. Tax Loss Harvesting

7. Review Your Restricted Stock Concentration

8. Review Expiration Dates for ISOs

9. Sell ISOs that are Down in Value

10. Equity Compensation Tax Withholding

11. Evaluate Your Expenses and Create a Spending Plan

12. Review Your Fixed Income Needs

13. Look Over Your Credit Report

14. Set a Budget for Holiday Spending

15. Review your Employer Benefits Statement

16. Spend Down Your Flexible Spending Account

17. Review Your Estate Plan

18. Update Your Designated Beneficiaries

19. Review your Insurance Policies

20. Review Your Emergency Savings Need

Next Steps

Book #1: The End of Power, Moisés Naím