Part Of Nest Egg in Single Stocks?
Ricky wants to know when to cash in on his investments.
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?