Sitting on years worth of vested stock options? Exercise them now to build wealth tax-efficiently.
Are you one of the many who have delayed exercising your company stock options over the years? We regularly meet people every year who are unaware of the wealth building resource that they are receiving from their employer in the form of non-qualified stock options. The individuals tend to fall into one of two camps. The first group tends to live beyond their means and annually exercise all of the vested units to pay off credit card balances that they accumulated over the year. The second group are good savers, but they often make a common mistake of leaving their stock options untouched assuming that is best. As you can imagine, the spending group has issues that are well outside the scope of a discussion on maximizing the value of stock option grants, so we will focus on the savers.