If we invest in a market-like portfolio, with wide diversification and diligence around our appropriate asset allocation, we can predict the return it will provide fairly well. It takes planning to ensure we can do everything we want given the realistic returns we can expect from such a strategy.
How much will you spend in the future? This is an important question, and we can get nearly there by looking at your current expenses. However, the biggest determinant of your future spending is actually inflation.
How much will you spend in retirement? This is an important question, and we can get nearly there by looking at your current expenses. However, the biggest determinant of your future spending is actually inflation.
Buying an individual stock is like placing your money on a single number in roulette, but much, much worse. In the United States, there are hundreds of large investment firms trying to pick the best stocks. Within these firms are talented, educated and well-connected analysts whose sole responsibility is to know whether to buy or sell 5-10 individual stocks.
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?
Stock prices are determined by buyers and sellers, of course, but those buyers and sellers are entirely human. And humans are filled with emotions.
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.
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.