Managing Equity Comp: How to Balance the Risks and Rewards
49: Leveraging equity compensation is one of the potential avenues we previously highlighted for use on the road to building wealth. But to enjoy the rewards, you have to know how to manage the risks along the way.
Many industries offer a piece of ownership to company employees through equity compensation packages. If you receive equity, you might get incentive stock options (ISOs), non-qualified stock options (NQSOs), restricted stock, restricted stock units (RSUs), or have the ability to participate in an employer stock purchase plan (ESPP).
Any type of equity compensation can supercharge your ability to grow your assets in a short period of time. But with high potential for reward comes the real threat of risk and loss. Successfully leveraging your equity compensation will require you to strike the right balance between reaping the benefits and protecting against the downsides.
Today on the show, we provide a general overview of equity compensation and how to manage it to your advantage. We cover:
Create your
podcast in
minutes
It is Free