The Two Primary Drivers of Investment Performance

There are two primary drivers of investment performance: (1) The amount of your investment portfolio that is allocated toward stocks. (2) Investor Behavior. The percentage in stocks matters because equity investors get paid to take on the higher risk, or uncertainty, of stock investing. We call this the equity premium and it basically means that historically stocks win. Investor behavior matters because investor performance has historically been extremely different than investment performance because, frankly, we just aren't wired to make consistently good investment decisions. Learn about this and more in the latest episode of coffee, sweaters, and finance with the Trailhead Planners financial planning team!
Read More

How to Tame the Emotional Roller-Coaster of Owning Company Stock

Many corporate and tech employees accumulate a great deal of employer stock via Restricted Stock Units (RSU), Incentive Stock Options (ISO), Non-Qualified Stock Options (NSO) and Employer Stock Purchase Plans (ESPP). Unfortunately, not many of us learned how to manage concentrated stock positions in school and there are a great deal of conflicting emotions at play and behavioral pitfalls to avoid. In this episode, we discuss the emotional perils of owning company stock, the behavioral biases at play with concentrated stock positions, and a present a few strategies for overcoming them. 
Read More

Company Stock: What is a Concentrated Stock Position?

Many corporate and tech employees accumulate a great deal of employer stock via Restricted Stock Units (RSU), Incentive Stock Options (ISO), Non-Qualified Stock Options (NSO) and Employer Stock Purchase Plans (ESPP). At what point does your ownership of company stock turn into a concentrated stock position? What are the risks and rewards inherent in owning a concentrated stock position? Last, how does a concentrated stock position impact your financial plan?
Read More
Subscribe to Coffee Sweaters and Finance