In today's episode Nicholas Olesen, CFP®, CPWA® wraps up our short podcast series on equity compensation, explaining how to view equity compensation in regard to your financial plan. If you missed the first two, you can listen to the overview episode here: https://bit.ly/33jfjfg and how to diversify, hedge, and reduce taxes of them here: https://bit.ly/30WVbOr .
During this episode Nicholas shares the five steps our team has found helps clients make the most out of their equity compensation plans:
- Start with your goals. Articulate them, rank them, and see how the plans can help you achieve them.
- Review your balance sheet and allocation. Value the stock plans now and in the future and make sure you are comfortable with the concentration of risk.
- Wait as long as possible to exercise options, most of the time.
- Understand exactly how the plan works. Learn about vesting schedules and what happens if you leave the company and then share it with your significant other.
- Review tax consequences before making a decision. But, don't "let the tax tail wag the dog".
We hope this was a useful series. As always, please consult your financial advisor and/or accountant before taking action on any of the steps we discuss.
Please send us feedback and any topic or questions you would like us to cover. Email us at: firstname.lastname@example.org