Good Financial Reads: Equity Compensation FAQs

3 min read
February 04, 2022

equity compensation faqs

Should I Sell Shares of My Company Stock? Here’s How to Decide

by Paul Sydlansky, Lake Road Advisors

If you have equity compensation like stock options, you might wonder: should I sell shares of company stock? …or should I hold my shares and wait until the stock price goes up?

This is a common question that our clients with stock options often ask, and I can understand why. Selling shares of company stock now means getting cash now – which can help you fund big goals or address important financial priorities, like getting out of a concentrated position.

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[PODCAST] Managing Equity Comp: How to Balance the Risks and Rewards

by Eric Roberge, Beyond Your Hammock

Leveraging equity compensation is one of the potential avenues we previously highlighted for use on the road to building wealth. But to enjoy the rewards, you have to know how to manage the risks along the way.

Many industries offer a piece of ownership to company employees through equity compensation packages. If you receive equity, you might get incentive stock options (ISOs), non-qualified stock options (NQSOs), restricted stock, restricted stock units (RSUs), or have the ability to participate in an employer stock purchase plan (ESPP).

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Should I Use My Stock Comp to Buy Rental Property?

by Jim Garvin, SeedSafe Financial

Many clients we work with have large windfalls of cash from their stock options. Either right after an IPO, a merger / acquisition, or some other event. Some choose to invest their proceeds into the stock market, while others want to own something for long term cash flow. We often hear the question, “should I invest in real estate?” or “What do you think about buying a rental property?” or “should I use my stock compensation to invest in the stock market or in real estate?”

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Should I Sell or Hold My Restricted Stock (RSUs)?

by Dan Slagle, Fyooz Financial Planning

COVID-19 has created fear and uncertainty in our everyday lives.  Employees of large, publicly traded companies not only have to worry about keeping their jobs, they also have to worry about their stock compensation.  Employees of publicly traded companies are granted Restricted Stock Units or RSUs as a form of additional compensation on top of a paycheck.  Now more than ever, employees of publicly traded companies are asking the question, ‘should I hold or sell my RSUs? ‘

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My (Private) Company is Doing a Tender Offer. Should I Participate?

by Meg Bartelt, Flow Financial Planning

When you work at a private company, you might dream about your company going IPO one day, and all your company stock turning into riches. If you’re reading this post, I imagine you are now contending with one of the other ways to turn private-company stock into grocery money: a tender offer.

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My Company Just Had Its IPO. Now What?

by Dan Andrews, Financial Planning Fort Collins

Your employer just had an Initial Public Offering (IPO). While you’ve worked there, you and your co-workers have been rewarded with stock and/or stock options, and you knew that there might be a big payday with an IPO. Now it’s happened — and you’ve got some big decisions to make.

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Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.