With the midterm elections complete (well, almost), we wanted to provide you some insight on a survey completed by our investment partners at Lincoln Investment Advisors Corporation*
Fall is an ideal time to examine your financial health and update your financial plans. Here is a list of important things that we will be proactively reviewing for you over the next couple of months. That being said, if you have any questions or want to learn more about any of these specific items, please let us know and we’d be happy to discuss it with you.
The big “R” word (recession) is back in-vogue with FedEx’s warning of a global recession and inflation continuing above 8% year-over-year for the month of August. With that new information in mind, we wanted to give you some insights on historical recessions and also what our network partners are seeing right now given the possibility of a recession continues to be top of mind.
Today we’ll introduce a mathematically-based methodology for analyzing our example grant and think through a better risk-adjusted metric for discussing this example grant series. It’s one of the metrics we use in “The Stock Options Analyzer” TM that gives us the ability to guide our clients in arriving at wiser and more appropriate conclusions when it comes to deciding when to exercise some or all of their stock option grants for any particular series of options.
So, the big question for most clients is still - “When should I exercise my stock options?” As we mentioned in prior blogs, we use The Stock Options AnalyzerTM with our clients to help answer this question. Once a client understands the value of their option grant at today’s price and has a better appreciation for the inherent risks and rewards of continuing to hold a stock option grant instead of exercising today, we utilize software that specializes in employee stock options to analyze several metrics in order to come up with a decision framework and timeframe for each stock option grant that a client holds.
In our prior blogs on the relationship between this famous Kenny Roger’s song and the P&G stock option program, we have examined how trying to decide when to exercise a particular P&G stock option grant is somewhat like trying to know when to “hold ‘em” and know when to “fold ‘em.” Nobody wants to leave a lot of money sitting on the table but nobody wants to lose whatever money they’ve already “won.”
