CERTIFIED FINANCIAL PLANNER™ professionals, Lauryn Williams and Chloé Moore are continuing the “Know Better, Do Better” series born from the countless conversations they have about the trendy narratives and clickbaity articles that make it hard for them to help their clients. They want to help you gain financial confidence and clarity to control your destiny.

In this episode of the series, Lauryn and Chloé are moving onto part two of a three-part series on equity compensation. Chloe specializes in working with individuals in the tech industry and those who receive equity compensation. There are a few common mistakes she sees people make so she is sharing tips to help you know better so you can do better. 

In part two of this series, Lauryn and Chloé talk about stock options including ISOs (incentive stock option) and NQSOs (nonqualified stock option). The difference between the two is how they are treated from a tax standpoint.

In this episode, Lauryn and Chloé share:

• An overview of what equity compensation including what is a stock option
• What a stock option is and how the process works
• The difference between RSUs and stock options including the additional risk involved
• The importance of understanding the ramifications of all the decisions you need to make with stock options
• Why you need to think about when to buy shares and if you really even want to
• The consequences of buying or selling at the wrong time
• What a cashless exercise is and when you want to do it
• Why you should work with a financial planner and tax professional if you have stock options
• The tax liabilities involved and why you don’t want to forget about them
• The considerations you should be making when buying shares of a private company
• The importance of keeping your financial goals in mind 

If you want to further connect with Lauryn Williams:

• Instagram: @worthwinning
• Twitter: @worth_winning
• Facebook: @worthwinningfp
• LinkedIn: @lauryn-williams

If you want to further connect with Chloé Moore:

• Instagram: @financialstaples
• Twitter: @finstaples
• Facebook: @finstaples
• LinkedIn: @chloemoore

RESOURCES MENTIONED:

• Worth Listening Podcast Episode 122: Equity Compensation Part 1 Understanding RSUs
• Salary negotiation strategies everyone in tech already knows — but you don’t

Coming up next

The next episode of the Know Better. Do Better series, is Equity Compensation Part 3 Employee Stock Purchase Plans (ESPP)