You can invest in your company stock in several ways, whether you are working for a publicly traded corporation or even a privately owned company.  

And who wouldn’t want to have ownership in the company you have your sweat equity with?  

However, there are tax implications and investment risks you must weigh before moving forward with doing so.  And even if/when you decide to invest in your company’s stock, you must have a plan and process to ensure you are not taking on unnecessary risk.  


In this episode, we’ll cover:

  • the different ways you can invest in your company stock
  • the tax implications of each strategy 
  • we’ll cover why investors are often so concentrated in their own company’s stock
  • and we’ll talk about some planning strategies along the way to help reduce unnecessary risk


Connect:


Links referenced throughout this episode:


Ways to invest in your company stock

https://finance.yahoo.com/news/invest-own-company-stock-160142745.html


RSU vs. ESOP

https://www.moneycontrol.com/news/business/personal-finance/mc-explains-how-is-an-esop-different-from-rsu-and-espp-9779721.html


The risk and underperformance of concentrated stock positions

https://www.fa-mag.com/news/the-risk-and-underperformance-of-concentrated-stock-positions-78253.html?section=68&utm_source=FA+Magazine&utm_campaign=3dd4479fde-FAN_AM_John+Hancock_060324&utm_medium=email&utm_term=0_-4b692acec9-%5BLIST_EMAIL_ID%5D


Excessive Extrapolation and the Allocation of 401(k) Accounts to Company Stock

https://www.anderson.ucla.edu/faculty/shlomo.benartzi/excessive.pdf




If you are interested in working with me 1x1, start by filling out our Retirement Readiness Survey below.  I’ll follow up with feedback on how you are tracking towards your goals, as well as how we can help you in your journey to financial independence.  

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Thanks for tuning in and hope you enjoyed this episode.  

-Kevin Lao