Your Guide to Stock Options: ESPPs, RSUs, and ISOs (That Won't Make You Take a Nap)
Your Guide to Stock Options: ESPPs, RSUs, and ISOs (That Won't Make You Take a Nap)  
Podcast: The Money with Katie Show
Published On: Wed Feb 01 2023
Description: Whether you’ve got access to an ESPP (Employee Stock Purchase Program) at work and aren’t sure if it’s worth your time, or your new offer includes compensation via RSUs and ISOs, this week is dedicated to you. Strap in for a ride through Jargonarnia.This week, I welcomed James Conole and Scott Frank—hosts of Real Personal Finance and holders of the prestigious CFP and CFA designations—to the show to help me break down this complicated world. They had some excellent tips that you won’t want to miss. For example, pretend your RSUs are cash—would you use a cash bonus to buy company stock? If not, sell ’em.Let's get into it.Learn more about our sponsor, TaxAct: https://www.taxact.com/moneywithkatieTranscripts can be found at podcast.moneywithkatie.com.—Mentioned in the EpisodeHuman Capital Study on Employee Stock Purchase Plans: https://humancapital.aon.com/insights/articles/2020/how-common-are-employee-stock-purchase-plans-it-varies-widely-by-demographicsThe Risks of Employee Stock Purchase Programs: https://moneywithkatie.com/blog/the-risks-of-employee-stock-purchase-programsMorgan Stanley Guide to ESPPs: https://www.morganstanley.com/atwork/themes/equity-compensation/how-does-espp-work-your-guidePros and Cons to RSUs: https://www.investopedia.com/terms/r/restricted-stock-unit.aspRSUs: The Basics: https://www.schwab.com/public/eac/resources/articles/rsu_basics.htmlMy Company Stock Options are Worthless: https://www.washingtonpost.com/business/2022/08/04/company-stock-options/These Startup Workers Thought Their Company Stock Would Make Them Rich. Instead They Got Worthless Shares and Massive Tax Bills: https://slate.com/business/2015/12/good-technology-workers-thought-their-stock-would-make-them-rich-nope.htmlAmazon Lost Half its Value this Year As Tech Stocks Got Crushed and Recession Fears Grew: https://www.cnbc.com/2022/12/29/amazon-shed-half-its-value-in-2022-as-tech-stocks-got-crushed.htmlIncentive Stock Options (ISOs): Everything to Consider: https://www.nerdwallet.com/article/investing/isosWhat is the Alternative Minimum Tax (AMT)?: https://taxfoundation.org/tax-basics/alternative-minimum-tax-amt/—Follow Along at Money with Katie: https://moneywithkatie.com/Watch on YouTube: https://www.youtube.com/@MoneywithKatieFollow Money with Katie!- Instagram: https://www.instagram.com/moneywithkatie/- Twitter: https://twitter.com/moneywithkatie Subscribe to The Money with Katie Newsletter- Sign up for free today: https://www.morningbrew.com/money-with-katie/subscribe/2Follow the Brew!- Instagram: https://www.instagram.com/morningbrew/- Twitter: https://twitter.com/MorningBrew- TikTok: https://www.tiktok.com/@morningbrewLearn more about your ad choices. Visit megaphone.fm/adchoices This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.katiegattitassin.com