Stock options have become a very popular way of compensating or providing added benefits to employees. Two types of stock options are Nonqualified Stock Options and Incentive Stock Options. Both options require proper planning and timing to minimize the tax consequences. For more information about income and stock options and to learn more about what each one entails, read this C.P.A. Insight.
Supply and demand tend to be the deciding factors to stock price fluctuations. However, the driving factor behind many investors’ decisions is conventional wisdom, or certain ideas or explanations that are generally accepted as true by the public. For more information on today’s market versus the idea of conventional wisdom, read this Investment Whys.
We define an investor as someone who invests for the long run–not someone who chases the market through excessive trading and market timing. At Henssler Financial, we follow a strategy called the Ten Year Rule; money needed within 10 years should be invested in fixed-income investments, while money not needed should be invested in growth investments. For more on the Ten Year Rule and how to plan for any kind of market, read this Investment Whys.