Maximizing Outcomes

Navigating Employee Stock Options, RSU’s and Stock Purchase Plans (Ep. 58)


Listen Later

Stock benefits can be a powerful tool for building wealth, but they often come with confusion and hidden risks.

How do stock options, RSUs, and employee purchase plans work? What tax implications should you consider? How can you protect yourself from overconcentration in company stock?

In this episode, Jim McGovern breaks down different types of stock benefits, explaining how they function, their tax implications, and the risks involved. He provides insights on when to exercise options, how to diversify, and strategies for hedging against potential losses.

Jim discusses:

  • The differences between stock options, restricted stock units (RSUs), and employee stock purchase plans, including how they are granted, vested, and taxed
  • The risks of holding too much company stock, including historical data on stock declines and why diversification is key
  • Tax implications of incentive stock options (ISOs) and non-qualified stock options (NSOs), including how timing affects tax rates
  • How restricted stock units (RSUs) provide a more straightforward benefit compared to stock options and why many large companies prefer them
  • Hedging strategies to protect against stock declines while still maintaining potential for future gains
  • And more
  • Resources:

    • Hedging Risk in a Concentrated Stock Portfolio with Eric Metz, CFA of SpiderRock Advisors (Ep. 31)
    • Connect with McGovern Wealth Group:

      • Schedule A Meeting 
      • McGovern Wealth Group
      • LinkedIn: Jim McGovern
      • Facebook: Jim McGovern
      • ...more
        View all episodesView all episodes
        Download on the App Store

        Maximizing OutcomesBy Jim McGovern

        • 4.9
        • 4.9
        • 4.9
        • 4.9
        • 4.9

        4.9

        28 ratings


        More shows like Maximizing Outcomes

        View all
        Animal Spirits Podcast by The Compound

        Animal Spirits Podcast

        2,026 Listeners

        The Compound and Friends by The Compound

        The Compound and Friends

        2,113 Listeners

        Wealth and Law by Wealth and Law

        Wealth and Law

        24 Listeners

        Ask The Compound by The Compound

        Ask The Compound

        320 Listeners

        Newton Knowledge Podcast by Newton One, LLC

        Newton Knowledge Podcast

        4 Listeners

        The Mel Robbins Podcast by Mel Robbins

        The Mel Robbins Podcast

        20,061 Listeners

        The Morgan Housel Podcast by Morgan Housel

        The Morgan Housel Podcast

        985 Listeners