Helping Family, Law Firm Partnership Buy-In, and Using NUA: High-Stakes Money Decisions

This week’s episode opens with a listener wondering whether to help their brother with a down payment on a new home. The brother plans to repay the funds after selling his current house, but how do you balance protecting your wealth with supporting family? Stephan breaks down the risks, protections, and alternatives to consider.

Next, we hear from an attorney preparing to make partner at their law firm. The expected buy-in is $500,000, and while average partner compensation is significantly higher, the question is: how do you know if the investment is worth it and the best way to finance it?

Finally, a soon-to-retire listener with $3 million in their 401(k) — including $800,000 of company stock — asks whether the Net Unrealized Appreciation (NUA) strategy could reduce their tax bill. We walk through how NUA works, the math behind it, and the risks to watch out for.

And in this week’s Advisor Red Flags, we spotlight so-called “exclusive” investment opportunities that may be more dangerous than desirable.

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