incentive stock options: I see a lot of clever individuals with significant gains in incentive stock
A disciplined stock option exercise strategy can prevent some huge errors and substantially enhance the value of your alternative grant. I try to teach my customers the following rules, which can work as a guide for you, too.
Do not exercise prematurely. Do not wait too long. A typical factor customers provide me for wanting to work out options quickly after they vest is a substantial purchase, like a fancy boat or cars. The most expensive boat or vehicle I can think of is the one purchased with alternatives. If left unexercised, the options will value (something a vehicle or boat is not likely to do) and the gains will stay tax-deferred until workout.
Let me describe why (in plain English and without fancy valuation designs).
Comments