The Malcolm On Money Guide to Restricted Stock Units

In the past few years, alternative investments have surged in popularity among retail investors looking to diversify beyond the perceived limitations of traditional stocks and bonds. Once reserved exclusively for the ultra-wealthy and institutional investors, alternative investments—including private equity, real estate, private credit, hedge funds, farmland, and even collectibles like art and wine —are now more accessible than ever.  

Today, the appeal of this alternative asset class lies in its potential for outsized returns. However, it was initially intended to provide investors with a hedge against inflation, as well as the promise to reduce a portfolio’s correlation with the stock market, which offers a buffer in times of volatility. Therefore, it is possible that there is a misunderstanding between the banks, brokerages, and other financial institutions offering alternatives to retail investors and the investors who are eagerly embracing them.

A revocable living trust is often seen as the cornerstone of a well-constructed estate plan. It allows individuals to bypass probate, maintain privacy, and when the time comes, it ensures a smoother transfer of assets to beneficiaries. However, many individuals stop short of completing the most critical step: retitling their assets into the name of the trust. 

When you establish a revocable living trust, you essentially create a legal entity to hold your assets during your lifetime and to distribute them after your death. For the trust to function as intended, ownership of your assets—such as real estate, bank accounts, and any investment interests—must be transferred into the trust's name. Failing to do so renders the trust an empty shell, leaving those assets outside its purview. 

After a turbulent few years marked by valuation compressions, rising interest rates, and fading investor enthusiasm, 2025 is shaping up to be a comeback year for the fintech sector. Several factors, including an anticipated slate of high-profile initial public offerings (IPOs), a more favorable regulatory and tax environment, and a resurgence in key fintech stocks, suggest that the industry is entering a new phase of growth and innovation.  

Fintech, long viewed as a disruptive force in the financial world, is again capturing the attention of investors who are now more optimistic about its potential for profitability and long-term value creation. Investors would be wise to consider how the sector's improving fundamentals, coupled with macroeconomic tailwinds like the anticipated decline in short-term interest rates, have likely created an attractive entry point for long-term growth opportunities. 

Out of 252 available trading days in 2024, the S&P 500 Index notched 57 new all-time highs, with the most recent record close at 6,090.27. This record-breaking market performance has left many investors sitting on massive unrealized gains, prompting the question of whether or not now is the time to sell and lock in some of those profits.

While the question itself is obviously straightforward, the answer is not. As markets continue to power higher, it can be challenging to find attractive opportunities to redeploy the cash from a sale. But for investors who have a more moderate to conservative risk tolerance, a possible solution is to pay off their home mortgage using the proceeds from some of those highly appreciated stocks or other investments.

For many investors, financial independence is the ultimate goal. It’s the point where your assets generate enough income to cover your living expenses, giving you the freedom to work on your own terms or choose to retire completely. 

However, reaching this milestone should also prompt a critical shift in your investment strategy. While the path to financial independence often involves seeking higher returns to accelerate wealth accumulation, continuing to take on too much risk once you've achieved that goal can be detrimental to your long-term financial security.

As Baby Boomers continue to enter retirement, following decades of diligent saving and investing, many are finding themselves sitting on a nest egg that is significantly larger than they will realistically need to live on. In fact, according to Fidelity's most recent 401(k) Millionaire study, the number of people with $1 million or more in their 401(k) accounts reached another all-time high. 

For many, this creates an opportunity to rethink the traditional approach to inheritance. When most people think about leaving an inheritance to their next generation(s), they imagine passing on assets after they’ve passed away, ensuring their children and grandchildren are financially secure for years to come. While this traditional approach to inheritance has its merits, there is an increasingly popular alternative that offers profound emotional, financial, and practical benefits: a living inheritance.

A recent survey by PwC of nearly 4,000 business and tech executives representing some of the largest global companies suggests that in 2024, 79% of organizations intended to increase their cybersecurity budgets from 2023. The survey also notes that the cost of security breaches, as well as the number of high-dollar breaches, continues to increase. And although cyber attacks are the top concerns cited, only half the organizations surveyed indicate they are ‘very satisfied’ with their technology capabilities in key cybersecurity areas.

Every four years, the world gathers to watch the Olympic Games and marvel at the incredible feats of athleticism and the awe-inspiring dedication of the competitors. Whether your favorite event to watch is gymnastics, swimming, or track and field, the athletes who compete all share similar traits that go beyond physical ability, such as discipline, mental toughness, and a willingness to delay gratification.

The success of investing legends like Peter Lynch, author of “One Up on Wall Street,” who achieved remarkable long-term returns during his tenure managing the Fidelity Magellan Fund, underscores the value of patience and persistence. Lynch famously advised investors to "buy what you know" and to stay the course, even during market turbulence. His philosophy is one that mirrors the long-term dedication of Olympic athletes.

As a parent, teaching your children to become financially responsible is one of the most impactful lessons you can impart. However, knowing what to say, how to say it, and how much information is too much information to share all at once can feel daunting. So much so, that it keeps most parents from ever trying.

In this episode of Malcolm on Money Office Hours, Malcolm shares some questions that parents can use as conversation starters with their children of any age, to help open up lines of communication and get comfortable discussing money as a family.