Glossary – Asset Management
and Retirement Planning Terms

  • Categories

  • Sort

Wills


Wills (and trusts) are important because they describe how you want your assets distributed when you die. There are many reasons why you should have a will, including to: clearly identify ownership of your property (and how much), assign a legal guardian for your children, expedite the legal process of assigning your assets, save on…

Read More

Trust Planning


One of the primary goals of estate planning (in addition to minimizing estate taxes) is giving the surviving family members and beneficiaries less stress and some privacy. Estate planning will ensure that your physical assets, investments, cash, etc. are transferred to your beneficiaries with minimal legal and tax complications and help protect your estate from…

Read More

Long-Term Care Insurance


This is a topic that could take pages to discuss. It’s going to boil down to “what’s right for you.” Your finances, experiences, geographic location, goals and health are all going to go into finding the “right” solution. (For example, there’s a genetic tendency for certain conditions such as Alzheimer’s – and also for vascular-related…

Read More

Disability Insurance


This can be critical for some people depending on circumstances. Earnings are the biggest asset (depending on stage of career). Disability insurance replaces part of your income, usually around 60% up to a specified amount, when an illness or injury is ongoing or permanent. All disability is not created equally. Now is a good time…

Read More

Business Life Insurance


If you own a small business and are self-employed, you can use life insurance for business continuation planning. Using the correct amount of life insurance (including specialized policies for small business owners) is very important with respect to both your business and loved ones.

Read More

Individual Life Insurance


Insurance is a critical tool for protecting your family against the possibility of catastrophic loss. We review your current insurance coverage and perform a detailed analysis to determine whether your coverage is sufficient to protect your family in the event of untimely death, disability, or long-term care needs. Term Life Insurance can be used to…

Read More

Optimal Asset Selection


When contributing to charitable causes selecting highly appreciated assets can reduce your tax bill and increase your deduction.

Read More

Charitable Gift Annuities


Charitable gift annuities are similar to other annuities in that a lump sum is exchanged in return for a series of payments. However, instead of involving an insurance company there is a contractual agreement between the donor and nonprofit that manages the charitable gift annuity. The funds are invested, and while the donor is living…

Read More

Charitable Remainder Trusts (CRT)


A charitable remainder trust (CRT) is a gift of cash or other property to an irrevocable trust. The donor receives an income stream from the trust for a term of years and/or for life and the named charity receives the remaining trust assets at the end of the trust term. The donor receives an immediate…

Read More

Donor-Advised Funds (DAF)


Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or…

Read More

Employee Stock Purchase Program (ESPP)


In a typical ESPP, employees are given an “option” to purchase employer stock at a favorable price at the end of an “offering period.” Many companies choose to implement an ESPP that qualifies for preferential tax treatment under Section 423 of the Internal Revenue Code.  Wharton Wealth Planning can help evaluate these programs and determine…

Read More

Restricted Stock Units (RSU)


RSU’s are actual shares of stock that are granted to an employee with restrictions as to when the employee may sell or otherwise dispose of the stock. The vesting of restricted stock is typically based on specific performance goals and/or, more commonly, the time an employee works at the company. One common goal of financial…

Read More

Non-qualified Stock Options (NQSO)


The most common form of stock options, NSOs, may be granted to various stakeholders including employees, contractors, and directors of a company. NSOs feature relatively straightforward taxation: When exercised, the difference between the exercise price and the underlying stock price is taxed as ordinary income. It’s generally reported on a Form W-2. When the stock…

Read More

Incentive Stock Options (ISO)


ISOs and other forms of equity compensation can help build wealth over time, so you want to make sure you have a clear idea of how to best handle them. We can help you understand when to exercise your options and clarify any tax implications.

Read More

Tax Projections


Wharton Wealth Planning can assist in optimizing clients’ compensation packages to help plan for a secure retirement. We can assist in summarizing and estimating the after-tax impact of your compensation components. Our process is to develop a detailed plan that addresses exercising options, reducing risk, and mitigating tax consequences.

Read More