The Mind Money Spectrum Podcast

#33. If you have Incentive Stock Options, you need to listen to this episode.

July 28, 2020 Aaron Agte and Trishul Patel Season 1 Episode 33
The Mind Money Spectrum Podcast
#33. If you have Incentive Stock Options, you need to listen to this episode.
Chapters
The Mind Money Spectrum Podcast
#33. If you have Incentive Stock Options, you need to listen to this episode.
Jul 28, 2020 Season 1 Episode 33
Aaron Agte and Trishul Patel

In this episode, Aaron and Trishul discuss the factors employees must consider when exercising their stock options. They go into strike price, Fair Market Value at exercise, sales price, and tax implications. They explain the difference between Non-Qualified Stock Options and Incentive Stock Options. They also introduce leverage, the Alternative Minimum Tax, and Golden Handcuffs. In the end, the decision of when to exercise options often lies on a spectrum between a sensible investment decision and a sensible tax decision, with most people falling in the gray area in the middle.

Episode References

Graystone Advisor - When do I Exercise my Incentive Stock Options?
MMS #21. Why the VIX is useless.
Stock Options 101: ISO vs. NQSO vs. Restricted Stock Units
Qualified Small Business Stocks Are More Attractive
IRS Code Section 409A
Always File Your 83b

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Aaron and Trishul discuss the factors employees must consider when exercising their stock options. They go into strike price, Fair Market Value at exercise, sales price, and tax implications. They explain the difference between Non-Qualified Stock Options and Incentive Stock Options. They also introduce leverage, the Alternative Minimum Tax, and Golden Handcuffs. In the end, the decision of when to exercise options often lies on a spectrum between a sensible investment decision and a sensible tax decision, with most people falling in the gray area in the middle.

Episode References

Graystone Advisor - When do I Exercise my Incentive Stock Options?
MMS #21. Why the VIX is useless.
Stock Options 101: ISO vs. NQSO vs. Restricted Stock Units
Qualified Small Business Stocks Are More Attractive
IRS Code Section 409A
Always File Your 83b

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.