It’s a challenge to optimize your investments with accounts spread over many different plans. Trying to pick the best mutual funds from four different menus that change from year to year can be a challenge for professional investors, let alone individuals.
If you work in the private sector, there’s a good chance that part of your compensation is paid in company stock. This can take the form of options, stock purchase plans, restricted stock or other programs. Making the right choices with company stock is critical when it’s a sizable portion of your net worth. Not only do you need to think about managing your risk while participating in your company’s success, but also there are tax consequences to your actions.
While most tax returns do not feature a four or five figure blunder, they happen more commonly than you’d think. Working with a professional tax preparer can help limit these errors, but even pros are not immune.