Many corporate and tech employees accumulate a great deal of employer stock via Restricted Stock Units (RSU), Incentive Stock Options (ISO), Non-Qualified Stock Options (NSO) and Employer Stock Purchase Plans (ESPP). At what point does your ownership of company stock turn into a concentrated stock position? More, what are the risks and rewards inherent in owning a concentrated stock position?
In this episode of Coffee, Sweaters, and Finance!, Morgan Ranstrom, CFA, CFP®, a financial planner at Trailhead Planners and Bill Mulvahill, CFP®, CPA, a financial planner at Essential Wealth, discuss the ins and outs of company stock, concentrated stock risk, and diversification.
Questions that come up:
- What is concentrated stock?
- How does an individual come to own a concentrated stock position?
- How does company stock impact your financial plan?
- What are the risks inherent in owning a concentrated stock position?
- What are the opportunities inherent in owning a concentrated position in company stock?
- What's the number #1 thing to consider when you have a concentrated stock position?
Interested in learning more? Setup a free introductory phone call: