For most people, tax time can be a headache—though for earners with traditional compensation packages, it can at least be fairly predictable (W-2 wages, withheld taxes, 401(k) contribution deductions, etc.). If you’re a business owner, partner, or investor in a...
Concentration risk is an issue of interest to nearly every employee, executive, business owner, or anyone else holding company stock and employee stock options. What is concentration risk? It’s loosely defined as holding a significant portion of wealth in a single stock, which could result in an inappropriately diversified portfolio. Unfortunately, the ambiguity associated
A performance award is a grant of company stock or stock units, typically tied to a pre-determined metric or goal that is specific to the recipient or award itself. More often than not, the recipient is an executive. Interchangeably referred
When you receive equity compensation in the form of restricted stock, non-qualified stock options, or incentive stock options, you may have the opportunity to make an 83(b)…
If you have equity compensation as part of your benefits package, you’ve likely spent time considering when it might be best to take action and maximize the value of these potential assets. Deciding the.
You might not give much thought to the equity compensation you receive throughout the year (until you’re forced to take action with it). But even if you do have a long-term plan in mind, it’s smart to pause periodically and review the overall strategy. The end of the...
You can develop concentrated equity positions in your investment portfolio when you own or control a single stock that makes up a significant part of your overall allocation. While there are many reasons this can happen, one common way people find themselves with a...
For those who are self-employed, the question of how to save for retirement is a frequent one. Fortunately, the answer may not be that that difficult at all. In fact, being self employed may mean that you have more retirement planning opportunities than you otherwise...
If you own company stock inside your 401(k) plan, you may want to know about net unrealized appreciation. Net unrealized appreciation, or NUA, is a financial planning technique that may allow you to obtain preferential tax treatment on a portion of your 401(k) assets....
Many financial planners will suggest that you allocate no more than 10-15% of your investable net worth into a single stock position. That range can allow you to benefit from the potential upside of a growing, successful company, without leaving your assets too vulnerable to a less-desirable outcome if the company underperforms.
Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.
Understand what you have, what you should consider, and what ultimately matters to you.
I write about equity compensation and employee stock options in a way that is easy to understand.
Understand what you have, what you should consider, and what ultimately matters to you.
Get the Ultimate Guide to Incentive Stock Options to better understand your equity compensation.
