The cluster of high-tech companies located in the industrial corridor between Beaverton and Hillsboro is nicknamed the Silicon Forest. The McGee Wealth Management client base includes employees from Intel, Epson, Autodesk, Microsoft, Oracle, and InFocus, to name a few.
In an industry that is so fast-moving, competitive and, at times, filled with uncertainty, occasional layoffs are not uncommon. Salaries and promotions may be frozen or positions eliminated. Employees’ futures may be uncertain while waiting for reassignment.
As engaging and exciting as working in this industry can be, personal financial planning must be considered a necessity, not just an after-thought. MWM works closely with current and former high-tech employees to address the contingencies that may occur during their work and financial life.
Raymond James is not endorsed by or affilliated with Intel, Epson, Autodesk, Microsoft, Oracle, and InFocus.
Mark and Cindy joined a large technology corporation when the company purchased Mark’s New England engineering team in the mid-1990s. They made the long move to Oregon where they raised their daughter. During his employment, Mark was fortunate to have participated fully in the Employee Stock Purchase Plan, which offered stock at a 15% discount as a payroll deduction. He took full advantage of his 401(k) and invested with each paycheck. He was granted stock options every year, and exercised and held most of the after-tax shares until he retired in 2001. Because they were planning an early retirement, they kept their expenses moderate.
Technology stocks have had dramatic histories with booms and busts. Mark’s shares had an average cost basis of less than $3 and on September 1, 2000, the shares were priced near $73.94, an exponential move. Even though taxes were a high priority for Mark and Cindy, they elected to diversify their portfolio away from the highly concentrated position. Our advice was to add more stable investments including municipal bonds and other non-correlated equity asset classes. The financial plan was designed for the long-term: a debt-free balance sheet, cash flow that met their income needs, and a trust for their daughter, Deanne.
Mark and Cindy both benefit from a balanced and diversified portfolio, which continues to support their cash flow needs to this day.
This investment profile is hypothetical and not indicative of any specific situations or clients. Individual circumstances and results will vary. It is presented only as an example and not intended as investment advice. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.