#016 - Making the Most of Employee Stock Options

Episode Summary:

In this episode of the 'Becoming Work Optional' podcast, Matt and Rachael delve into the intricacies of employee stock options, exploring both their benefits and complexities. They provide a comprehensive overview of how stock options work, including the critical differences between non-qualified and incentive stock options, the importance of vesting, and the role of stock performance. The episode wraps up with insights into cost basis, tax consequences, and the importance of diversification in managing company stock.

Key Points Discussed:

Overview of Stock Options: Matt and Rachael explain stock options as a form of equity compensation and the need for thorough organization for tax and strategic planning.

Types of Stock Options: Differentiation between non-qualified stock options (NQSOs) and incent ...