Financial Planning - Diversification - myStockOptions.com
Financial Planning › Diversification
Laura Tanner, PhD, CFP®
Podcast included! Through the author's personal example, this article presents the dangers of a concentrated stock position, discusses why diversification may be hard for employees with shares from equity compensation, and explores strategies for preserving your net worth.
Once you have settled on a comfortable ownership percentage of company stock in your combined holdings, how do you decide which shares and options to hold and which to sell?
John P. Barringer and Bruce Brumberg
The biggest challenge I face when counseling my clients is convincing them to avoid owning too much of their company's stock. Tales about employees of Lehman Brothers or Enron who lost their entire net worth have shaken these clients to attention.
Paul Palazzo, CFP®
Podcast included! Stock options can be very lucrative if handled properly, but there are situations in which people can easily make mistakes. In this article I discuss the most common mistakes I see.
Robert J. Pyle
Podcast included! While you may have great faith in your company's stock, you also need to diversify your investment portfolio. For employees with stock options, doing this successfully requires a careful analysis to figure out the optimal times to exercise and sell.
How To Develop A Stock Option Exercise Strategy To Reach Your Financial Goals (Part 1)
Podcast included! One of the most vexing investment decisions you will ever make involves when to exercise your stock options and when to sell the shares. This article series will give you the tools for determining that time.
Stockbrokers' Secrets: Retirement Planning With Stock Compensation (Part 1)
Podcast included! Many of my clients do not see stock compensation in the bigger picture of retirement savings and withdrawal plans. Considering net worth, age, and company stock plan, I present the client with these core points about stock grants, 401(k) plans, nonqualified deferred compensation, and IRAs.
Tax Strategies With Stock Options, Restricted Stock, And Deferred Compensation
Having both nonqualified stock options and nonqualified deferred compensation gives you a tremendous amount of flexibility to optimize your financial planning and tax situation. In this article, I explain how I have used the two plans in concert with one another.
When you retain shares acquired through stock compensation or an ESPP, you are subject to the advantages and disadvantages of being an owner of the company. By owning stock, you are subject to both market risk and...
I have faith in my company's stock and want to own it, yet I also must diversify. I have both shares and in-the-money vested options. Should I sell the shares I already have or exercise options and immediately sell those shares in a cashless exercise?
What you need to consider depends on your stock option plan, personal financial goals and risk tolerance, and complex tax rules, including...
How do I compare waiting to exercise my options at the end of their term against exercising now to put the current option spread into a diversified investment?
Let's look at the various tax permutations for nonqualified stock options (NQSOs)...
I want to automatically exercise options and sell stock to pay a regular bill, such as college tuition. How do I set up a prearranged selling plan so it doesn't violate insider-trading laws and company blackout rules?
SEC Rule 10b5-1 now provides an affirmative defense...