Financial Planning: Strategies
Articles (Jump to FAQs)
Michael Beriss
Managing your stock options is one of the most complex financial challenges you will face. These 10 rules will help you get the most out of your company's stock plan.
Beth Walker
Avoid the mistakes others made during prior boom markets and downturns. Common mistakes arise in nine different situations, including termination, mergers, financial planning, term expiration, and life events.
Beth Walker
Avoid the errors that many people have made, including mistakes that stem from major life events and taxes.
Carol Cantrell
Your stock options and restricted stock are important for your retirement planning. Understand the related issues and explore strategies, whether you are planning for retirement now, are nearing retirement, or have retired already.
W.E.B. Bantling
NEW! Many of my clients use stock compensation to boost retirement savings and lifestyles. Yet I find many do not see it in the bigger picture of retirement savings and withdrawal plans. Considering net worth, age, and company stock plan, I present the client with eight core points about both their stock grants and their 401(k) plans.
Marilyn Renninger
Stock options aren't just for the folks on mahogany row any more. But turning stock options into the real green stuff takes some know-how. You need to know certain features of your grant to decide when to exercise your options and sell the stock.
Richard Friedman
UPDATED! Understand financial planning for restricted stock and RSUs. Part 1 discusses the growing popularity of these grants, and tax planning.
Bruce Brumberg
Employee stock purchase plans (ESPPs) are popular and prevalent at most public companies. However, the structure of these plans is changing. These modifications may affect your decision to participate in your ESPP and its place in your financial planning.
Bruce Brumberg
Employee stock purchase plans (ESPPs) are changing in many ways, largely in response to accounting rules. For Part 2, myStockOptions.com asked financial and wealth advisors what they are recommending to clients about ESPP participation.
W.E.B. Bantling
My clients want to exercise options shortly after they vest for a significant purchase, like a fancy boat or a sports car. The most expensive boat or car I can imagine is the one bought with your just-vested options. Tips I tell clients include not exercising too soon or waiting too long.
W.E.B. Bantling
I see too many smart people who have substantial gains in their stock options do dumb things, as I explained in my first article. Here are more of the rules I try to teach my clients, which can act as a guide for you, too.
Tom Davison
UPDATED! The Bush administration's 2003 tax cuts and later extensions continue to affect NQSO and ISO tax strategies.
William Baldwin
Rather than providing you with a guarantee, today's benefit plans offer only an
opportunity to attain financial security. The decisions you must make will turn some of you into financial winners.
William Baldwin
Stock options are a major element of your long-term incentive compensation, offering tremendous potential to accumulate personal wealth. Given your stock options' complexity, it’s essential to develop a strategy to realize their full potential.
Professor Steven Huddart
It's very tempting to exercise and sell your options when you see your company's stock price reach new highs or you're worried about its volatility. However, this strategy could end up costing you a large portion of your options' potential value.
Marie Leone
CFO, August 2007
Basic financial-planning strategies and mistakes to avoid with your stock options.
Lewis Braham
BusinessWeek, 6/18/07
Because stock option and restricted stock grants are part of your overall portfolio, you need a clear strategy for when to hold and when to sell.
Bruce Fraser
Financial Advisor, 4/05
With many variables to consider, timing and strategy for when to exercise are critical for realizing stock option gains and avoiding tax liabilities.
Sue Stevens
Morningstar.com, 4/29/04
Don't get greedy. Look at your stock price, your tax rates, and whether exercising today would help you meet your financial goals. (Registration is required.)
Andrea Coombes
CBS MarketWatch.com, 5/29/03
Understand basic financial strategies so that you don't miss chances to make the most of your options. (Registration is required.)
Lewis Braham
BusinessWeek, 3/10/03
Treat these employee perks as a real part of your portfolio, not as a lottery ticket. Develop a strategy that avoids treating your option gains like play money.
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FAQs (Jump to articles)
There's no requirement for which vested options you must exercise first. The decision of which options to exercise first is part of your...
This is a difficult question to answer, and no single strategy applies to everybody. The best course for you is colored by both your company's stock option plan and your personal financial goals...
Most option plans do not prescribe the order of option exercises, which is usually up to you...
This is wishful thinking, because these are two separate transactions. It does not make sense to...
As other FAQs and articles in this section explain, there is no universal plan for everybody. With that said, we present some general advice from experts...
When the stock market rebounds after a fall, one of the most common mistakes among optionholders is exercising too early to grab quick profits...
To receive a dividend you must own a stock on the record date, so you want to be aware of the ex-dividend date. Also consider...
The 2003 tax law has no provisions that deal directly with employee stock options or stock purchase plans. If your income goes up...
As long as the student is considered a dependent of the parent for financial-aid purposes, the parent does have to report stock options on line...
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