Credit: Chris Guillebeau
Ellen’s dad died unexpectedly. Her mom is clueless about finances. How does she help a 70-year-old unravel financial complexities?
Mike has an opportunity to buy into his friend’s growing business. What should be his legal, financial, and relationship considerations?
Pepp wants to know what’ll happen to her Restricted Stock Units when her company goes private.
An anonymous caller needs to build her nest egg. She’ll be a full-time student with no income. She has 20 years until retirement. Should she execute a Roth conversion?
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
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Here are the details:
Ellen asks (at 01:45 minutes): My father unexpectedly died a few weeks ago. My mom is really struggling and I don’t know how to help her.
My father managed their money in a complicated fashion. They had multiple bank and investment accounts, along with a few properties.
My mom has a job that’ll pay her a good salary until she dies, but she also spends a lot.
Her understanding of finances is so rudimentary that she doesn’t know how to log in to her checking account. My mom is in her 70’s, the learning curve to be able to manage everything on her own doesn’t seem realistic.
It’s overwhelming. I’m starting to realize that I can’t take over for her. I could see it really damaging our relationship if we don’t find a solution.
Are there clever ways to manage the condos that she now owns?
Mike asks (at 35:39 minutes): My old coworker offered me a partnership in his business. I deeply respect and have a great relationship with him.
He started his company in the engineering services sector eight years ago. He’s close to hitting $1 million in annual revenue and he thinks there’s lots of room to grow.
I’d be making $120,000 per year, similar to my current salary.
We’ve discussed the possibility of buying into his business by setting aside portions of my paycheck, but I have zero experience in business ownership.
Some questions I have:
- Is there a structure for buying in that works best?
- How do I protect myself and my own assets?
- How do I set myself up for short-term and long-term profit?
- How do I determine what the company is worth? How much should I own?
- Should I look for professional or personal support from a third party?
- Are there books or online courses you recommend?
- What are the other legal, financial, professional, and relationship perspectives I should consider?
I’m okay with being hired as an employee, but I’m more excited about the prospect of being a partner in this business.
Pepp asks (at 56:02 minutes): What are the financial consequences for employees when a public company goes private?
I work in tech and my publicly traded company is being acquired. What’s going to happen to my Restricted Stock Units (RSU’s)?
Will I take a loss? For someone with a lot of stock, how can I deal with the tax fallout if I’m forced to sell all of my shares at once?
Anonymous Caller asks (at 1:05:01 minutes): I quit my job in Virginia and moved to Texas to become a full-time student in an accelerated Bachelor of Nursing program.
I’m proud to be in a position to go back to school debt-free, but I wish I had more retirement savings.
I’m 40, single with no kids, and not planning to have children. I’ll graduate in January 2024 and plan to work until I’m 65.
I have $20,000 in emergency cash and $165,000 in retirement accounts: 80 percent is tax-deferred, and 20 percent is tax-exempt.
In the future, I want to travel or buy a home, but adding to my retirement is my number one goal for the next five years.
2023 provides an interesting opportunity to do a Roth conversion because I’ll have no income as a full-time student.
If I have $5,000 to invest, should I put it into an IRA?
Or should I use the money to pay taxes on a Roth conversion? I could move $40,000 from a tax-deferred account to a tax-exempt account.
Resources mentioned:
When a Company is Acquired | Website
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