Employee stock and stock options:  The good and the bad.

You are enrolled in your company ESPP, you were given RSU’s or ISU’s, you have an allocation to the company stock fund in your 401(k) plan and you may own company shares in a brokerage account.

Any combination of these could result in your equity stake being 25%-50% or more of your personal net worth.  If your company is doing really well and the stock continues to go up, the concentration can be even higher.  On the other hand, if the company is not doing well, your personal net worth could take a huge hit.

Evaluate your own situation

It’s important to find out your financial exposure to your employer.  If your equity stake is too high, there are multiple ways to hedge or diversify your risk. Use the proceed from sale of stock to fund other goals that are important to you. Take action and access your situation so all of your eggs are not in one basket.

Call:781-569-5909  Text:508-868-9980  jcasale@sagamorewealth.com


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