by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on Sep 8, 2022 | Time to Read: 7 min
Non-qualified stock options and incentive stock options are the two types of employee stock options that you may receive as part of your compensation package. While they have some similarities, they also differ, particularly when speaking to how they may be taxed at exercise and upon the final sale of stock.
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Aug 11, 2022 | Time to Read: 10 min
Wouldn’t it be great if your company stock price only ever went up—especially if you’re participating in its growth through incentive stock options (ISOs)? Unfortunately, that’s not always how the world turns. If the share price goes down instead, you may be bummed to see the value of your incentive stock options is less than what it once was. However, a down stock price might mean that you could score some tax breaks if you exercise and hold some of those ISOs. When the price is down, the move might help minimize alternative minimum tax (AMT).
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on Sep 23, 2022 | Time to Read: 9 min
Who doesn’t love a great tax break? You and I can’t personally reverse a bear market or revise Federal regulations. But we do get to decide when and how to exercise, hold, and sell our incentive stock options (ISOs), dictating whether we have a qualified disposition or disqualified disposition. Why not make best use of your tax-planning powers when you do?
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on May 17, 2022 | Time to Read: 10 min
Incentive stock options are a type of equity compensation you may receive as part of your overall compensation package. Incentive stock options, or ISOs, allow you to buy company stock at a fixed price for a set period of time, regardless of the current fair market value of the stock. In the best circumstances, incentive stock options can be a tool to generate significant wealth if...
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on Mar 16, 2022 | Time to Read: 6 min
If you are on the receiving end of an equity compensation award, you may be overwhelmed by the amount of new information, jargon, and rules coming your way. You might also feel uncertain about how new.
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on Jun 1, 2022 | Time to Read: 11 min
Incentive stock options are a powerful compensation tool that can help you grow your wealth. Companies award them to employees as a retention vehicle, to reward specific successes or as an incentive when trying to attract new employees. There are several advantages to incentive stock options. Because they can provide you with a significant opportunity, it’s important to understand them more fully. The Mechanics of an Incentive Stock Option To begin with, it’s helpful to...
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on May 17, 2022 | Time to Read: 30 min
If you have stock options, then you can access an asset that provides you with a choice. Very literally, a stock option is an option; it’s a form of compensation that gives you the right (but not the obligation) to buy shares of company stock at a set price. Acting on this choice is known as exercising your stock options. To decide whether or not you want to exercise your options, you might want to...
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on Jun 21, 2022 | Time to Read: 8 min
If you have employee stock options, you need to determine what kind you have so you know if a cash or cashless exercise makes sense: incentive stock options (ISO) or non-qualified stock options (NQSO). The differences go far beyond their names. ISOs may provide tax advantages for you, assuming you meet certain requirements. For this reason, many prefer incentive stock options over NQSOs. But with the tax advantages come increased complications. The rules around qualifying...
by Daniel Zajac, CFP®, AIF®, CLU®. Last Updated on Last Updated on Mar 16, 2022 | Time to Read: 4 min
I’m passionate about using my experience to help people like you understand what to do with employee stock options, RSUs, and other forms of equity compensation. I spend a lot of time developing resources to educate on this topic because I believe it’s important that you know how to best leverage this part of your financial life. As the resource library has grown for your continued education, others have taken notice too — and that’s...