Hi Reader,
Stock options are a huge wealth-building opportunity, but only if you understand them.
While they can be a powerful component of your compensation package, they’re also one of the most misunderstood.
Whether you're at a startup or a public company, knowing how they work can be a game-changer.
🔍 Key things to understand:
Stock Options vs. RSUs: Options give you the right to buy shares at a set price; RSUs are granted as actual shares (once vested).
ISOs vs. NSOs: ISOs are for employees only and may qualify for favorable tax treatment. NSOs are more flexible but taxed differently.
Vesting & Expiration: You typically need to stick around for your options to vest and make decisions before they expire.
Tax Strategy Matters: Poor planning can turn a valuable benefit into an unexpected tax burden.
📈 When timed and managed correctly, stock options offer financial upside and help align your incentives with your company’s growth.
💡 Talk to a financial advisor or tax professional to make sure your equity strategy fits your overall financial plan.
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David N. Waldrop, CFP®
Owner of Bridgeview Capital Advisors, Inc. a Registered Investment Advisor.
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