Incentive Stock Options

You should not have more than 10% of your nest egg tied up in incentive stock options, since they are risky.

QUESTION: Ricky wants to know when it’s the right time to exercise and cash in incentive stock options.

ANSWER:
You should not have more than 10% of your nest egg tied up in these options.  Make sure you have a lot more saved up in your 401-K because these single stocks are risky. 

I would cash them all out as they mature and put them into mutual funds.  But if you really want to play with them, don’t put more than 10% of your nest egg into them.  Can you say Enron?

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Reach Your Money Goals

Reach Your Money Goals

Start with a budget. Join the millions already budgeting with EveryDollar!

Create My (FREE) Budget

Thank You!

Your 8-Day Jump Start is on its way to !