Just Because You Feel Optimistic About Your Company's Stock Doesn't Mean Your Spouse Does

It can often be tempting to accumulate as much stock in your employer as possible- whether as a show of confidence in the future of the company, or as a means to accumulate wealth quickly.But when you decide to join your finances with a spouse or partner, in addition to determining if and how you'll merge your various checking and saving accounts, it's also important to determine how you'll approach investing as a couple.

In this episode of Malcolm on Money Office Hours, Malcolm makes the case for why it's important to take some chips off the table along the way, as well as use the shares that you've accumulated as part of your total compensation package to achieve some of your bigger financial goals. While there's no problem with maintaining a position in your company's stock, you want to make sure that no one security represents more than 20% of your overall net worth at any point.

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Malcolm Ethridge, CFP® is an Executive Vice President and fiduciary Financial Advisor with CIC Wealth Management, based in the Washington, DC area. He is also the Managing Partner of Capital Area Tax Consultants. 

Malcolm’s areas of expertise include retirement planning, investment portfolio development, tax planning, insurance, equity compensation and other executive benefits. 

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Disclosures:

CIC Wealth, LLC does not provide legal or tax advice. Be sure to consult with your tax and legal advisors before taking any action that could have tax consequences.

Investments in securities and insurance products are:

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE