Many of my clients originally reached out to me because they have a lot of company stock and don’t understand what it is or when to sell it. They are aware they lack “diversification,” but don’t know what to do about it—or if diversification is a big deal at all.
You’ve finally pulled the trigger, selling a chunk of your company stock and leaving you with a pile of cash sitting in your brokerage account. What now? Now you have a pile of cash and need to know what to do with it. Let’s talk about that.
Running on autopilot can be dangerous. If a pilot’s course is off by 1 degree traveling from San Francisco to New York, they will end up 40 miles out in the Pacific Ocean. Likewise, if you don’t recalibrate your financial autopilot settings, you’ll miss your destination of financial security.
On March 8th, SVB was trading at $267 per share. By March 10th, you couldn’t give your SVB stock away. Investors lost $16 billion in 2 days. It’s easy to say, in hindsight, that it couldn’t happen to you, but there are some 8500 employees who just lost tens of millions of dollars in their company stock.
If you are in the savings/investing mode, would you rather stock prices today be over or under the true value of the companies you are buying?
Your Company Stock awards are part of your total compensation for work. They are not a bonus and they are not lottery tickets. You work hard for your company and part of your pay includes these stock awards.
We’ve all heard that we should be diversified, but what does that mean? It means to own a lot of things that you expect to do well over time but that don’t always do well at the same time.
What is Financial Planning? I like to think about it in a very simple way. You need to have clarity in your finances before you can have control. Once you have control, you can be very intentional.
If you regularly give to charity and have income that fluctuates, I’m going to show you something that is going to save you money. As I’m sure you know, your charitable contributions are deductible from your income for tax purposes.
Once you have a plan in place to sell your Company Stock over time, be sure that money has some place to go. We don’t ever want our money to be without a job and the cash you get from your Company Stock is no exception.
No longer should we simply let these (newly vested shares) drift into our portfolio without a strategy or reason to hold vs. sell. Instead, we are going to develop a strategy for each block of vesting shares.
Taxes are a fact of life. I talk to a lot of people who are trying to find the super-secret way that people with money avoid paying taxes. I’m here to tell you – it doesn’t exist.
Is the amount of stock you have accumulated starting to look large to you? Do you want to be sure you are doing the best thing with this important asset?
We make decisions in everyday life based on seeking a reward given the risk we are willing to take. Without risk, there is no reward.
You’ve worked for a great company for a while and have stock that has built up over time. What do you need to know to get the most out of it? Here are three things you need to know about your company stock.
RSUs, restricted stock units, are sometimes issued by your employer’s company as a form of a delayed bonus. Since it’s a paid bonus received as compensation in the form of stock, it’s up to you to sell the stock and receive the cash.
Diversification is the key to any successful portfolio. However, recently, individual tech stocks have been all over the news and I’ve been getting asked, “How much company stock should I have?” or “Do I have too much?”