I write about employee stock options and equity compensation in a way that is easy to understand.
There are many reasons to exercise your employee stock options: a pending retirement that might require re-allocating assets; an approaching expiration date that warrants a “use it or lose it decision; a strategic exercise plan that integrates tax and financial...
When dealing with employee stock options, the conversation usually centers around issues of income tax and investment risk. We talk about taxes because the amount of tax you pay has an impact on how much money you actually receive when you finally sell your shares....
Retirement planning is often summed up into a single question: How much money do I need to retire? Unfortunately, this question leaves many well-intentioned retirees far short of the actual goal. While understanding how much your retirement may cost, it’s just one...
There is no easy way around it, employee stock options are complicated. And depending on the type of stock options you have, how many you have, other types of employee stock options you own -- along with all your other specific financial planning needs --...
When you exercise and hold incentive stock options, it’s very possible that you will be subject to the alternative minimum tax (AMT). This part of the tax code gets complex, making it difficult to understand. One way to think of the AMT is a pre-payment of income tax...
Restricted stock and restricted stock units (RSUs) are both commonly-used tools to attract and retain employees. While similar in feel, restricted stock, and restricted stock units are technically different instruments, the details of which go beyond the scope of this...
Non-qualified stock options (NQSOs) are a common compensation feature provided to employees as part of a compensation package. If you have access to these perks, they give you the opportunity to potentially profit from the rising value of the company’s stock. If you find yourself on the receiving end of NQSOs, you need to understand what non-qualified stock options are and how they work, including how they could impact your income taxes, investment risk, and financial planning goals.
Traditional retirement planning is grounded in the belief that if you save early and save often, you’ll accumulate enough wealth to retire with the lifestyle that you want. Many people try to achieve this feat by funneling a percentage of their paycheck into a 401(k)...
If you own company stock or employee stock options, it’s possible that you have experienced market volatility and have seen firsthand how a quick change in the stock price can materially impact the value of your stock options. A rising stock price can quickly change the value of your stock options positively. Potentially to such an effect that it can create a concentrated equity position that should be evaluated.
Restricted stock units are a great way for companies to add an incentive to employee compensation packages. If you are receiving restricted stock units from your employer, understanding the various unfamiliar terms and tax consequences are important to maximizing their value.
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.
