Good Financial Reads: Your Employee Stock Options, Part One

2 min read
March 16, 2018


Good Financial Reads_ Your Employee Stock Options-1

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Catch up on some of the latest posts with this week's roundup:


Compensation Beyond the Paycheck: What You Need to Know About Restricted Stock Units

by Brian Thompson, Brian Thompson Financial, LLC

Experts at Glassdoor say that January is the most popular month for job changes, so if you’ve recently changed employers, you’ve got lots of company. By now, you’re probably starting to get comfortable with your responsibilities, your coworkers and basic benefits like compensation, vacations and health care. You also may have some new, more complex benefits to incorporate into your overall financial plan. Over the next few weeks, I’ll be taking a closer look at equity compensation, that is, perks that encourage you to invest in the company you work for, over time giving you an ownership stake in your employer.

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Understanding Your Employee Stock Options

by Levi Sanchez, Millennial Wealth, LLC

Employee stock options are a common benefit in the tech industry. Not only do they incentivize employees to stick around, but employees benefit directly from their hard work in the form of ownership in company stock. Understanding stock options and how to incorporate them into your financial plan is a whole other story. For some individuals, their stock can become a large portion of their net worth as they can be extremely lucrative. This article will describe the basics of non-qualified stock options and incentive stock options, risks involved, and how to manage the tax consequences.

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Restricted Stock Unit (RSUs) Strategy Guide

by Lucas Casarez, Level Up Financial Planning, LLC

Many of the clients I’ve helped came from the tech industry and it really amazed me about how many of them had built up wealth and investments without really understanding how they work. Yes, living within their means played a huge part in their financial success, but so had investing in retirement accounts and receiving employer stock awards. Retirements and investments receive much of the attention from other financial planners, so in this post, I want to focus on employer stock rewards, more specifically Restricted Stock Units.

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Stock Option Plans and the Alternative Minimum Tax  

by Rebecca Conner, SeedSafe Financial, LLC

Alternative minimum tax (“AMT”) is a hard proposition for many tech employees. When you exercise incentive stock options it increases your net worth, but you don’t actually get any cash. This puts you in a tough spot for paying any AMT later on. This is an important topic for start-up tech employees with a stock option plan and it is easy to miss.

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Stay tuned for next week's Good Financial Reads: Your Employee Stock Options, Part Two, where we'll be sharing more articles on this topic!