Stock options. Restricted stock units (RSUs). They sound like Wall Street jargon, but if part of your paycheck comes in company stock, these terms could make—or break—your financial future. Join hosts Jesse Cramer and Gabe Chodak as they dive into the world of equity compensation, with Certified Financial Planner (CFP), Allison Shuler. Together, they unravel the complexities of stock compensation, the tax implications you can’t ignore, and the common mistakes that could leave thousands (or more!) on the table. Whether you’re cashing in RSUs, exercising stock options, or navigating a high-stakes compensation package, this episode is your essential guide to making smarter financial moves. If you earn part of your paycheck in company equity, don’t miss this one.
Key Takeaways:
- Should you hold or sell your stock grants?
- How does equity compensation impact your investment strategy?
- What happens to your stock if you leave your company?
Key Timestamps:
(00:00) – The rise of equity compensation: Why more employees are getting paid in stock.
(03:00) – Stock Options vs. RSUs: Key differences and why they matter.
(06:00) – How RSUs are taxed: The crucial moment when you owe the IRS.
(08:00) – NSOs vs. ISOs: Which stock options come with better tax benefits?
(11:00) – Common mistakes employees make with stock compensation.
(13:00) – The risk of holding too much company stock: Why overexposure can be dangerous.
(17:00) – The tax dilemma: Holding too long vs. selling too soon.
(23:00) – How to create a strategy for selling stock and reducing risk.
(26:00) – The hidden risks of equity-heavy compensation packages.
(28:00) – Why you need an accountant and financial planner to optimize your strategy.
Key Topics Discussed:
The Trusted Partner, Cobblestone Capital Advisors, Jesse Cramer, Gabe Chodak, Wealth Management Rochester NY, Financial Planning for Families, Fiduciary Financial Advisor, Comprehensive Financial Planning, Retirement Planning Advice, Tax-Efficient Investing, Risk Management for Investors, Generational Wealth Transfer Planning, Financial Strategies for High Earners, Personal Finance for Entrepreneurs, Behavioral Finance Insights, Asset Allocation Strategies, Advanced Estate Planning Techniques, stock options, RSUs, equity compensation, taxes, compensation income, capital gains, financial plan, investment, diversify, NSOs, ISOs, Allison Shuler
Mentions:
Allison’s LinkedIn: https://www.linkedin.com/in/allison-schraf-shuler-cfp®-003870119
More of The Trusted Partner:
Website: https://cobblestonecap.com/the-trusted-partner-podcast/
Information presented in this podcast is not intended to be nor should be construed as individualized investment advice. All content is of a general nature and solely for educational, informational and illustrative purposes. Investments in securities are not insured, protected or guaranteed and may result in loss of income and/or principal. Opinions of unaffiliated third-parties may not represent those of Cobblestone Capital Advisors or its employees.
