Articles by
Reagan A. Hamilton, ChFC^®

In the world of spirits, bourbon has undergone a remarkable transformation from a regional favorite to a globally coveted collectible. Beyond its rich flavors and cultural significance, certain bottles of rare bourbon have become increasingly valuable assets for collectors and investors alike. Over the past decades, these bottles have not only provided exquisite drinking experiences but also served as potential financial investments, often outperforming traditional indices like the S&P 500. Let's delve into some notable examples of rare bourbon bottles and their journey from distillery shelves to auction houses.

In the realm of collectibles, LEGO® sets have emerged as a surprising star. What once adorned children’s bedrooms and living room floors has evolved into a lucrative market for enthusiasts and investors alike. Over the past two decades, certain LEGO® sets have skyrocketed in value on the secondary market, turning what were once simple playthings into sought-after treasures.

Consumers make purchases for a myriad of reasons ranging from personal consumption to investing in a perceived future value. Unlike more conventional investments where valuation is more closely related to the business' financial strength or projected future earnings, the markets for collectibles are often impacted by more tenuous factors. These factors can include trends and fads, technological advances, lack or abundance of disposable income among would be collectors, and scarcity. So why would one choose to invest in this way? Where there is risk, there is often opportunity. Understanding which fluctuations in price are a sign of things to come and which indicate a more temporary market shift may make the difference between great success or being left with a beautiful, albeit less-valuable, timepiece.

Form 83(b) is an optional form filed with the IRS that allows you to claim the taxable income of restricted stock on the grant date, rather than the vesting date. In some circumstances, this can be a significant tax savings, allowing you to achieve capital gains tax rates on all the appreciation, instead of only the appreciation amount after the vesting schedule requirement has been met.

Employee stock awards come in various forms, each with its unique features and benefits. Whether through stock options, restricted stock units, employee stock purchase plans, performance stock awards, or phantom stock, companies have a range of tools at their disposal to motivate and reward their workforce.

When a portion of your compensation is in the form of shares of stock, it often leads to a large percentage of net worth being dependent on the performance of one company’s stock price. For this reason, careful investment planning is necessary for anyone receiving equity compensation.