Good Financial Reads: Your Employee Stock Options, Part Two

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.

If you like what you read or are interested in the advisors below, be sure to click on their name to learn about them and their niches, or their firm name to visit the company website!

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

Compensation Beyond the Paycheck: Incentive Stock Options and Non-Qualified Stock Options

by Brian Thompson, Brian Thompson Financial, LLC

Let’s start with some basics. Stock options give you the ability to buy a certain number of shares of stock at a specified price. This provides incentive for you to stick around until the options vest. It also motivates you to help make the company as valuable as possible.  You want the share price of your company to go up, so that you can purchase the stock at a discount and then sell it for a profit.  Employers like options because, among other things, they attract good employees, allow them to save cash and provide incentive for the employee to stick around and do good work.

[Read the Full Article]

Should I Use My Company Stock to Buy A Home?

by Meg Bartelt, Flow Financial Planning, LLC

Do you work for a company whose stock is stratospheric nowadays? Or are you sitting on a bunch of stock from a company that had a successful IPO? Is this your ticket to homeownership?

It is a beautiful financial transmogrification: turning company stock into a home. It just seems poetic to me. There’s something so gratifying about turning that evanescent, intangible stock into something tangible. You can touch it! Decorate it! Cook dinner in it! Raise your kids in it!

I have ushered several clients through this process, and it’s been a great experience. There’s no denying that “new homeowner” glow. But it’s not a choice that everyone should make.

[Read the Full Article]

How to make an 83(b) election for your company stock options

by Rebecca Conner, SeedSafe Financial, LLC

Many individuals are interested in making the 83(b) election to minimize long-term tax due. However, this may or may not be a good choice for you. I will not go through the analysis and pros/cons of such a choice in this post. This is for information purposes on the mechanics of making the election.

[Read the Full Article]

For more on employee stock options, be sure to check out Good Financial Reads: Your Employee Stock Options, Part One!