Samsung Display to invest $11 billion in facilities, research by 2025

Apple removes police-tracking app used in Hong Kong protests from… The tech giant said the app violated its rules because it was used to ambush police and by criminals who used it to victimize residents in areas with no law enforcement. Technologyread more


Apple removes police-tracking app used in Hong Kong protests from… The tech giant said the app violated its rules because it was used to ambush police and by criminals who used it to victimize residents in areas with no law enforcement. Technologyread more
Samsung Display to invest $11 billion in facilities, research by 2025 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10
Keywords: news, cnbc, companies, samsung, victimize, removes, residents, rules, used, violated, invest, facilities, policetracking, app, tech, 2025, protests, billion, display, research


Samsung Display to invest $11 billion in facilities, research by 2025

Apple removes police-tracking app used in Hong Kong protests from…

The tech giant said the app violated its rules because it was used to ambush police and by criminals who used it to victimize residents in areas with no law enforcement.

Technology

read more


Company: cnbc, Activity: cnbc, Date: 2019-10-10
Keywords: news, cnbc, companies, samsung, victimize, removes, residents, rules, used, violated, invest, facilities, policetracking, app, tech, 2025, protests, billion, display, research


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‘Million Dollar Listing’ star Ryan Serhant: The best piece of investing advice I ever got

Real estate broker Ryan Serhant, star of the Bravo series “Million Dollar Listing” and “Sell It Like Serhant,” knows a thing or two about money — he spends his time selling high-end real estate to some of the richest people in the world, after all. Serhant’s investing advice: ‘Invest in things you know’The best piece of investment advice I was ever given was to invest in things you know. And that includes investing in technology, investing in people who are inventors and creating things — both p


Real estate broker Ryan Serhant, star of the Bravo series “Million Dollar Listing” and “Sell It Like Serhant,” knows a thing or two about money — he spends his time selling high-end real estate to some of the richest people in the world, after all. Serhant’s investing advice: ‘Invest in things you know’The best piece of investment advice I was ever given was to invest in things you know. And that includes investing in technology, investing in people who are inventors and creating things — both p
‘Million Dollar Listing’ star Ryan Serhant: The best piece of investing advice I ever got Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: sam becker, anna-louise jackson
Keywords: news, cnbc, companies, star, investing, advice, listing, serhant, piece, dollar, invest, youre, million, best, real, things, ryan, really, estate, actually, going


'Million Dollar Listing' star Ryan Serhant: The best piece of investing advice I ever got

Real estate broker Ryan Serhant, star of the Bravo series “Million Dollar Listing” and “Sell It Like Serhant,” knows a thing or two about money — he spends his time selling high-end real estate to some of the richest people in the world, after all. But when it comes to his own money, he’s fairly conservative. He saves a lot, and he knows the value of a dollar. When it comes to investing, he sticks to a pretty simple strategy: Invest in what you know. Serhant recently sat down with the Grow team to discuss the most valuable investing advice he’s received, how he learned about money at a young age, and more. Here is his story, as told to senior reporter Sam Becker.

Serhant’s investing advice: ‘Invest in things you know’

The best piece of investment advice I was ever given was to invest in things you know. Things you use. Things you could see yourself using; things you actually like. Don’t invest in stuff that doesn’t interest you, because then you’re not going to follow up on it. You’re not going to be as active an investor. So, I invest in things or products that I enjoy, use, or think are really interesting. And that includes investing in technology, investing in people who are inventors and creating things — both physical products as well as software — [and] investing in real estate.

When it comes to real estate, I used to really think that to be a wise investor, you have to invest what you actually have to spend, so don’t spend more than you can afford. But I’ve found that to be incorrect. The best investments I’ve made are the ones that actually push me outside of my comfort level. Because you need to work more. You need to do more to actually get a return on this investment. And that’s worked really, really well for me.

‘The best investment I ever made’

The best investment I ever made: I invest in my business all the time. I invested in our YouTube vlog, and I think it’s funny because before I started the vlog on YouTube, everyone thought it was stupid and crazy. Including me. Actually, mostly me. I thought it was dumb. Just another form of social media. I was just sick and tired of it and I had no idea what it was going to do to our business. But it is a massive way of driving business and driving brand awareness. So, by investing the money that I did into the vlog, more people buy my book, more people buy the course, more people reach out to me to buy and sell homes.

Don’t invest in stuff that doesn’t interest you, because then you’re not going to follow up on it. You’re not going to be as active an investor. Ryan Serhant Real estate broker, author, and TV star

How being ‘broke’ led to his real estate career


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: sam becker, anna-louise jackson
Keywords: news, cnbc, companies, star, investing, advice, listing, serhant, piece, dollar, invest, youre, million, best, real, things, ryan, really, estate, actually, going


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25-year-old tech founder is helping teach everyday Americans how to invest

Learning to think like an investor at a young age, he says, helped him become a tech entrepreneur. Gage, 25, is one of the founders of Rapunzl Investments, a mobile app that lets users simulate stock trading in real time. Gage believes that his platform can help young people who lack formal financial education make better decisions and start investing for their future. Starting in first grade, students learn core financial tenets like investing and entrepreneurship and get hands-on experience in


Learning to think like an investor at a young age, he says, helped him become a tech entrepreneur. Gage, 25, is one of the founders of Rapunzl Investments, a mobile app that lets users simulate stock trading in real time. Gage believes that his platform can help young people who lack formal financial education make better decisions and start investing for their future. Starting in first grade, students learn core financial tenets like investing and entrepreneurship and get hands-on experience in
25-year-old tech founder is helping teach everyday Americans how to invest Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: sam becker, anna-louise jackson
Keywords: news, cnbc, companies, invest, investing, everyday, rapunzl, gage, founder, stock, app, helping, tech, money, users, school, 25yearold, ariel, teach, americans, financial


25-year-old tech founder is helping teach everyday Americans how to invest

Like a lot of kids, Myles Gage was into sneakers when he was growing up. But his mom suggested an unusual rule: For every pair of Nikes that Gage owned, he should own a share of Nike stock. Learning to think like an investor at a young age, he says, helped him become a tech entrepreneur. Gage, 25, is one of the founders of Rapunzl Investments, a mobile app that lets users simulate stock trading in real time. The platform makes a game out of the markets: Users get $10,000 fictitious dollars to buy and sell stocks, which helps them learn how the markets work and start to experience the excitement and potential benefit of investing. Gage believes that his platform can help young people who lack formal financial education make better decisions and start investing for their future.

Learning early to be ‘financially literate’

Gage says his parents made a lot of financial mistakes and they wanted to make sure their kids didn’t follow in their footsteps: “They wanted us to be financially literate and in a position to make better decisions.” That’s partly why Gage’s mother, who worked for the Chicago Parks District, found a way to get him and his brother, Mario, into Ariel Community Academy, a specialized public school for students K-8 with a focus on financial education. Starting in first grade, students learn core financial tenets like investing and entrepreneurship and get hands-on experience investing in stocks. Attending Ariel made a huge difference in Gage’s life: “The only reason I know about the stock market is because of Ariel Community Academy,” he says.

The only reason I know about the stock market is because of Ariel Community Academy. Myles Gage CFO, Rapunzl Investments

That knowledge paid off: It helped Gage win a full-ride scholarship to the University of Chicago Laboratory School, a prestigious private high school. “I wrote an essay about how I planned to finance my college tuition. And the main point of that was that I was going to liquidate my stock portfolio,” he says. “I don’t think the judges were expecting a 14-year-old to be talking about liquidating a portfolio, let alone one from the south side of Chicago.”

The origins of Rapunzl

As a high school freshman in 2008, Gage immediately bonded with another student, Brian Curcio. While discussing the stock market and the budding financial crisis, the two came up with the idea of a stock market game, using fictional money, to teach people how the markets work. Over the next few years, the economy recovered. Some investors, who had money to buy stocks when the markets bottomed out, started to see strong returns. Average Americans, however, were often missing out. Gage didn’t think that profits should belong only to a select few, hidden away at the top of a tower like the character of Rapunzel in the 1812 Brothers Grimm fairy tale. Rapunzl the app, Gage and Curcio decided, would make investing accessible. It would give anybody the chance to learn, to figure out how the stock markets work. Then, when users were comfortable, they could actually start investing.

How the app got funded

Through their college years, the two met frequently to refine the concept for Rapunzl. They settled on an idea that would allow users to simulate a stock portfolio without risking real money. But to make their idea come to life, real money is exactly what the two young entrepreneurs needed. So, after graduating in 2016, they organized their ideas and started looking around for seed funding.

Myles Gage with Rapunzl cofounder Brian Curcio. Courtesy Rapunzl Investments LLC

“We put a mini-pitch deck together and shopped it around to our friends and family, and were able to muster up funds to develop a prototype,” Gage says. They hired a Canadian developer who created an early version of the app and made it available for download in April 2017. Around that time, Rapunzl also did another round of fundraising, which netted the company enough money to continue perfecting the platform. Several months later, the founders brought in a third partner, Chris Thomas, as the company’s CTO.

‘Our country needs more innovative approaches like Rapunzl’

To attract users and take aim at their mission of creating a new generation of confident, financially literate investors, Gage and the team headed back to school — literally. Rapunzl partnered with the Federal Reserve Bank of Chicago and started sponsoring conferences, plus essay and investing competitions at schools around the Chicago area. The team also met with John Rogers, the chairman and CEO of Ariel Investments — which also funds and sponsors Ariel Community Academy — who agreed to sponsor the competitions and provide prize money. In 2018, Rapunzl was involved in competitions in more than 70 Chicago-area schools, comprising more than 2,000 students.

Our country needs more innovative approaches like Rapunzl that aim to tackle financial illiteracy and close the achievement gap. Arne Duncan Former U.S. Secretary of Education

Rapunzl is building on its success in Chicago schools by expanding. Last year, it sponsored competitions in Los Angeles, Boston, and New York, with plans for more cities next year, and colleges, too. It has even managed to catch the attention of former U.S. Secretary of Education Arne Duncan. “Our country needs more innovative approaches like Rapunzl that aim to tackle financial illiteracy and close the achievement gap,” Duncan said, following an announcement about Rapunzl partnering with investing firm Wedbush. Duncan, who doesn’t have any current connection to the app, did play a role in developing the curriculum at Ariel Community Academy.

The app and its founders hope to make a difference

So far, the Rapunzl team has focused their efforts on generating interest in the platform and getting young users hooked on trading. The app doesn’t currently drive revenue, though, and Gage is hopeful that will change. He says at some point in 2020, the platform will be monetized through affiliate marketing and premium subscriptions.

Courtesy Rapunzl Investments LLC


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: sam becker, anna-louise jackson
Keywords: news, cnbc, companies, invest, investing, everyday, rapunzl, gage, founder, stock, app, helping, tech, money, users, school, 25yearold, ariel, teach, americans, financial


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Be like a bank. Test yourself to see how your finances would hold up if something bad happened

The only real difference is that many more people depend on a big bank than on you. The bank performs dozens of regular stress tests on a range of scenarios, including wars and recessions. A financial plan doesn’t have to be complicated. Then, as the banks do, test different parts of your financial life to see how they’d perform in bad weather. Annually check these four key things recommended by Andrew Crowell, vice chairman of D.A.


The only real difference is that many more people depend on a big bank than on you. The bank performs dozens of regular stress tests on a range of scenarios, including wars and recessions. A financial plan doesn’t have to be complicated. Then, as the banks do, test different parts of your financial life to see how they’d perform in bad weather. Annually check these four key things recommended by Andrew Crowell, vice chairman of D.A.
Be like a bank. Test yourself to see how your finances would hold up if something bad happened Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-08  Authors: jill cornfield
Keywords: news, cnbc, companies, bank, things, dont, financial, thats, test, finances, bad, theyd, happened, key, plan, hold, invest, stress


Be like a bank. Test yourself to see how your finances would hold up if something bad happened

Is it crazy to compare yourself to a large financial institution?

No. You both have a key thing in common: assets.

The only real difference is that many more people depend on a big bank than on you.

One Wall Street winner — Jamie Dimon, CEO of J.P. Morgan Chase — emerged from the financial crisis whole. Some of the bank’s investors more than tripled their money in the wake of the financial crisis. Dimon’s strategy: preparing for the worst, not simply hoping things will turn out OK. The bank performs dozens of regular stress tests on a range of scenarios, including wars and recessions.

When you think about it, you already do that. What if you got sick? That’s why you have health insurance. What if something happened to your car? That’s why you have theft and liability insurance.

More from Invest in You:

Here’s how to invest like Warren Buffett

Tips from people who didn’t save till their 40s or 50s

You’ll probably regret that timeshare, car payment

Do your own financial stress test by creating a financial plan — that’s the foundation of your review. So if you don’t have one, put that on your to-do list. Don’t be intimidated. A financial plan doesn’t have to be complicated.

Then, as the banks do, test different parts of your financial life to see how they’d perform in bad weather.

Annually check these four key things recommended by Andrew Crowell, vice chairman of D.A. Davidson & Co. Wealth Management.

You want to do this to identify any vulnerable points. Crowell recommends testing your portfolio and general finances, and how they’d react if interest rates rise, the stock market drops or you needed to meet a sudden expense. He uses the acronym “MAID” to remember them easily: markets, accidents, income disruption and death.


Company: cnbc, Activity: cnbc, Date: 2019-10-08  Authors: jill cornfield
Keywords: news, cnbc, companies, bank, things, dont, financial, thats, test, finances, bad, theyd, happened, key, plan, hold, invest, stress


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We asked a financial advisor to decode promising investing pitches so you can invest more safely

“The entire premise of making a financial or investment decision because you feel a certain way is, in itself, a warning sign,” said Boneparth. “The main lesson: Don’t invest in things I don’t understand,” he said. “Don’t invest your life savings in the hope that it will be Google or Facebook,” he said. “But this is predicated on something that does not fit good financial planning or smart investment decisions,” he said. “A $1 million portfolio allocating 5% to gold would mean $50,000 in gold,”


“The entire premise of making a financial or investment decision because you feel a certain way is, in itself, a warning sign,” said Boneparth. “The main lesson: Don’t invest in things I don’t understand,” he said. “Don’t invest your life savings in the hope that it will be Google or Facebook,” he said. “But this is predicated on something that does not fit good financial planning or smart investment decisions,” he said. “A $1 million portfolio allocating 5% to gold would mean $50,000 in gold,”
We asked a financial advisor to decode promising investing pitches so you can invest more safely Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: jill cornfield
Keywords: news, cnbc, companies, boneparth, advisor, invest, investment, company, promising, nelson, dont, marc, asked, decisions, financial, gold, safely, pitches, investing, decode


We asked a financial advisor to decode promising investing pitches so you can invest more safely

When something sounds too good to be true, it probably is. At odds with this old wisdom is a flood of investment information and recommendations to put your money where it supposedly will keep you safe and make you rich.

Mirko Vitali / EyeEm | Getty Images

The problem is, when you’re just starting out you may not recognize questionable information. “Anytime you receive any kind of marketing communication pitching an investment, proceed with caution,” said certified financial planner Douglas Boneparth, founder and president of Bone Fide Wealth in New York. Here are six things that should make you hit the pause button.

Your emotions

Recession warnings are starting to rumble again, so you’ve probably seen a worrisome headline or two. Feeling anxious, you start thinking about selling. “The entire premise of making a financial or investment decision because you feel a certain way is, in itself, a warning sign,” said Boneparth. “We typically don’t want to make our decisions based on our emotions.” Don’t make your investing decisions based on interest rates or headlines, says Boneparth. More from Invest in You:

Single-income families share their money secrets

Tips from people who didn’t save till their 40s or 50s

You’ll probably regret that timeshare, car payment “The very premise feels off key,” Boneparth said. If feelings are driving you to make an investing move, most financial planners would advise you to see how specific moves would impact your finances. “Anything has the potential to have you make a bad or uninformed financial decision,” Boneparth said, “which in turn is likely not going to help you achieve your goals.”

Your observations

You might observe something about a company that makes you think it would be a good investment. David Nelson, 29, noticed a lot of service outages from his internet and television provider. He read a recent financial report and did some research. It seemed like a great chance to invest in a turnaround: a struggling company with a viable plan to become more profitable. Nelson figured he would buy low, at $1.72 for common shares and $18 for preferred shares. He invested about $6,000. “The company purchased some Verizon accounts, and unfortunately the acquisition didn’t go as planned,” said Nelson, who lives in Florida’s Tampa Bay region. Service disruptions lost them a lot of customers, significantly affecting their share price. He originally planned to hold on for at least two years. “But I freaked out when I saw the stock was down 30% or 40%, and I took the loss,” Nelson said. Nelson’s advice: Do your research and be able to back up your position with facts. Don’t make decisions based on hope or emotion.

Things you don’t fully understand

Marc A., 40, learned a thing or two about investing when he made a quick decision in 2013. Marc, who asked that his last name not be used, had missed out on a year’s worth of 401(k) contributions after changing the structure of his York, Pennsylvania, internet marketing company. His advisor at the time told him that three-quarters of a $13,000 investment in an energy company would be tax-deductible. Natural gas mining would be a solid investment that would pay out. Six years later, Marc says the returns have been disappointing. “The main lesson: Don’t invest in things I don’t understand,” he said. “So far, in more than five, six years we’ve been paid back less than $2,000 of the $13,000 we invested.” He says he cannot sell the investment without going through the advisor, with whom he no longer works. “I’ve written it off as a loss mentally a long time ago,” Marc said. Marc now takes a DIY approach to his money and runs a personal finance blog. “One of the positives was just taking the initiative to educate myself better,” he said. “If a particular investment is too complicated to understand, it likely tells you all you need to know about getting involved with it,” Boneparth said.

IPOs

The odds of getting rich from an IPO are unlikely. First, Boneparth says, you have to take on a significant amount of risk. “Don’t invest your life savings in the hope that it will be Google or Facebook,” he said. “Most IPOs will not provide that same kind of performance.” “If you get an email or watch a commercial that millions of people are reading, do you think you’ve come across something so unique you’re going to capitalize on it?” Boneparth said.

Gold

The typical claim: “The world is crashing, and you’ll need a hard asset like gold to get yourself through the fallout.” The sellers of some investment products know that people feel frightened when interest rates fall or the stock market shows some volatility, Boneparth said. “But this is predicated on something that does not fit good financial planning or smart investment decisions,” he said. (See above: Your emotions) Several claims about gold — that it’s a safe haven or a hedge against inflation — have been debunked. “It has risks associated with it like any other asset,” Boneparth said. The amount of gold you might hold in your portfolio — recommendations say 3% to 5% — is so small as to make it almost meaningless. “A $1 million portfolio allocating 5% to gold would mean $50,000 in gold,” Boneparth said. “If you have $100,000 and allocate 3%, that’s $3,000.” Ask yourself if that would be a meaningful way to dampen volatility.

Bold claims and random recommendations


Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: jill cornfield
Keywords: news, cnbc, companies, boneparth, advisor, invest, investment, company, promising, nelson, dont, marc, asked, decisions, financial, gold, safely, pitches, investing, decode


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How to save $1 million on a $100,000 salary, broken down by age

Even if you are making $100,000 a year, planning to save $1 million for retirement can seem like an impossible goal. Yet, with some hard work, dedication and a lot of time, you can get there, regardless of your age. As a rule of thumb, most financial advisors suggest you save 10% to 15% of your salary. But if your goal is to get to $1 million, the percentage you need to invest will vary widely based on how old you are when you start. NerdWallet crunched the numbers, and we can tell you exactly h


Even if you are making $100,000 a year, planning to save $1 million for retirement can seem like an impossible goal. Yet, with some hard work, dedication and a lot of time, you can get there, regardless of your age. As a rule of thumb, most financial advisors suggest you save 10% to 15% of your salary. But if your goal is to get to $1 million, the percentage you need to invest will vary widely based on how old you are when you start. NerdWallet crunched the numbers, and we can tell you exactly h
How to save $1 million on a $100,000 salary, broken down by age Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-01  Authors: robert exley jr noah higgins-dunn, robert exley jr, noah higgins-dunn
Keywords: news, cnbc, companies, plan, goal, youll, need, 100000, salary, retirement, age, invest, million, broken, save, numbers


How to save $1 million on a $100,000 salary, broken down by age

Even if you are making $100,000 a year, planning to save $1 million for retirement can seem like an impossible goal. Yet, with some hard work, dedication and a lot of time, you can get there, regardless of your age.

As a rule of thumb, most financial advisors suggest you save 10% to 15% of your salary. But if your goal is to get to $1 million, the percentage you need to invest will vary widely based on how old you are when you start.

NerdWallet crunched the numbers, and we can tell you exactly how much of your $100,000 you’ll need to tuck away to get there.

Just a few things to remember: These numbers assume you have no money in your retirement plan, that you will get a conservative 6% return on your investments and that you will retire at age 65.

The math also does not account for potential pay increases, employer matches, inflation or any curve balls that life may throw at you. So plan accordingly.

Now let’s dive into the figures.

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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.


Company: cnbc, Activity: cnbc, Date: 2019-10-01  Authors: robert exley jr noah higgins-dunn, robert exley jr, noah higgins-dunn
Keywords: news, cnbc, companies, plan, goal, youll, need, 100000, salary, retirement, age, invest, million, broken, save, numbers


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Consumer instant gratification can prove risky

There are many benefits to being able to access almost anything from the touch of your phone. “This instant gratification in the financial world can be risky,” said Shelle Santana, a professor of business administration at Harvard Business School. The reality is that more than 75% of all full-time workers are living paycheck to paycheck, according to a report from CareerBuilder. “The more that we are allowing consumers to have control over their finances and commit to healthy financial behaviors


There are many benefits to being able to access almost anything from the touch of your phone. “This instant gratification in the financial world can be risky,” said Shelle Santana, a professor of business administration at Harvard Business School. The reality is that more than 75% of all full-time workers are living paycheck to paycheck, according to a report from CareerBuilder. “The more that we are allowing consumers to have control over their finances and commit to healthy financial behaviors
Consumer instant gratification can prove risky Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-30  Authors: jessica dickler
Keywords: news, cnbc, companies, access, consumer, gratification, instant, prove, financial, invest, consumers, business, living, santana, paycheck, decade, risky, healthy


Consumer instant gratification can prove risky

There are many benefits to being able to access almost anything from the touch of your phone. There is also a downside.

“This instant gratification in the financial world can be risky,” said Shelle Santana, a professor of business administration at Harvard Business School.

The reality is that more than 75% of all full-time workers are living paycheck to paycheck, according to a report from CareerBuilder.

While household income has grown over the past decade, it has failed to keep up with the increased cost of living over the same period.

From payday advances to layaway loans, there are new ways to access money to bridge the gap, easier and cheaper than ever before.

More from Invest in You:

Here’s how to invest like Warren Buffett

Tips from people who didn’t save till their 40s or 50s

You’ll probably regret that timeshare, car payment

But any incentive to loosen the purse strings is also a slippery slope, particularly as the pain from the last recession — now a decade behind us — subsides.

“The more that we are allowing consumers to have control over their finances and commit to healthy financial behaviors is a useful development,” Santana said.

However, “it could spur more spending than what consumers are capable of or what would be healthy for them to take on,” she added.


Company: cnbc, Activity: cnbc, Date: 2019-09-30  Authors: jessica dickler
Keywords: news, cnbc, companies, access, consumer, gratification, instant, prove, financial, invest, consumers, business, living, santana, paycheck, decade, risky, healthy


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Here’s how to best invest in your employer’s stock

Many companies offer restricted stock plans, stock options and employee stock purchase plans. For example, if you’re granted a stock option today when the stock is trading at $10 per share, you can buy that stock for that price once that option is vested. “It’s a use it or lose it proposition with a stock option,” Cervino said. Shorter-term plansMany employees have access to broad-based plans called employee stock purchase plans. An employee stock purchase plan, or ESPP, allows workers to buy th


Many companies offer restricted stock plans, stock options and employee stock purchase plans. For example, if you’re granted a stock option today when the stock is trading at $10 per share, you can buy that stock for that price once that option is vested. “It’s a use it or lose it proposition with a stock option,” Cervino said. Shorter-term plansMany employees have access to broad-based plans called employee stock purchase plans. An employee stock purchase plan, or ESPP, allows workers to buy th
Here’s how to best invest in your employer’s stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-29  Authors: lorie konish
Keywords: news, cnbc, companies, best, option, stock, heres, purchase, cervino, employees, incentives, employee, invest, plans, company, plan, employers


Here's how to best invest in your employer's stock

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When public safety technologies company Axon wanted to change the performance incentives for its CEO, Rick Smith, the company took it one step further. Now, the company’s employees are able to participate in an aggressive compensation plan that’s tied to the public company’s goals. The plan mirrors the same incentives Smith is working towards. The new plan began in January. All employees received at least 60 stock units in the plan, while employees with compensation of $100,000 and up could increase their participation rate. The plan’s goal is to take a typical stock grant, a restricted stock unit, and “supercharge” that, according to Axon Chief Financial Officer Jawad Ahsan. That includes a 3-times multiplier for risk, which is also multiplied by nine years, the length of the program. For an employee, that means a $1,000 RSU could convert to a $27,000 XSU, or eXponential stock unit. Provided the company hits all its milestones over that nine-year horizon – including market capitalization, revenue and EBITDA (earnings before interest, tax, depreciation and amortization) targets – that $1,000 could ultimately be worth $135,000, Ahsan said. More from Personal Finance:

Your benefits at work can help your family save in 2020

Here are some smart investing strategies in any market

Your health insurance costs are about to go up next year The introduction of the plan has changed the way employees engage with the company’s goals, he said. “Employees started getting a lot more creative about how we can expand beyond our core law enforcement market,” Ahsan said. Axon’s compensation plan changes were initially inspired by the incentives Tesla gives to CEO Elon Musk. Tesla also provides its employees with an equity compensation plan, according to public disclosures. If you think you need to work at one of these companies to get those kinds of benefits, think again. Many companies offer restricted stock plans, stock options and employee stock purchase plans. The key is to know what is available to you, said Emily Cervino, head of industry relationships and thought leadership at Fidelity. “Stock compensation can be a great way for employees to generate wealth and share in the economic appreciation of their company,” Cervino said. “But you really need to understand what you have in order to make the most of it.”

Long-term incentives

These incentives are usually provided to a subset of employees at a company. But there are exceptions to that, where all employees are granted equity, particularly in Silicon Valley, Cervino said. Those offers usually take the form of either stock options or full value awards. A stock option is a right to purchase shares at a fixed price for a fixed period of time. For example, if you’re granted a stock option today when the stock is trading at $10 per share, you can buy that stock for that price once that option is vested. You may have that right for up to 10 years. If the stock is then $40 per share, that means you can still buy it for $10.

It’s a use it or lose it proposition with a stock option. Emily Cervino ead of industry relationships and thought leadership at Fidelity

Restricted stock is like a stock option, but it doesn’t have a price on it. So the same stock at $40 per share would cost you $40 when you buy it. Restricted stock is given to employees more frequently than stock options, Cervino said. It’s important to note that if you have stock options, they come with an expiration date, which is often around 10 years. If you miss that expiration date, there’s no undoing it. “It’s a use it or lose it proposition with a stock option,” Cervino said.

Shorter-term plans

Many employees have access to broad-based plans called employee stock purchase plans. These plans are generally made available to all of a company’s employees. But they have to elect to participate in the plan. An employee stock purchase plan, or ESPP, allows workers to buy their company’s stock through payroll deductions, so it comes out of their paychecks. One big advantage is that employees get those shares at a discount, Cervino said. Usually, that is 15% with a feature called a lookback. So if you enroll in the plan when the stock is $10 and you purchase the stock when it’s $15, the discount applies to the lower of the two prices. That means you can buy the stock for $8.50 per share when it’s trading at $15 per share.

Unlike long-term incentives, ESPPs usually buy shares every three to six months. Generally, employees can invest between 1% to 10% of their salary. But because the IRS puts a $25,000 limit on how much an employee can purchase in stock, the risk of being overexposed to one stock is less compared to restricted stock or stock options, Cervino said. Because shares in an ESPP can be sold in the short- to medium term, the goals you’re investing for should also match that time horizon, Cervino said. That can include money for a down payment on a house or car, college expenses or a wedding.

Risks to keep in mind

As with all investments, there are pitfalls that you want to avoid. One thing to watch out for: having too high a concentration to your company. This is more common on the long-term incentives side, Cervino said. Keep in mind that you may also own that same stock in your 401(k) plan. Plus, your salary and all your other benefits are tied to your company. If you’re thinking about leaving your job, you also should be mindful about what date you choose to leave. That’s because you generally have to be an active employee in order to participate in these plans.

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Company: cnbc, Activity: cnbc, Date: 2019-09-29  Authors: lorie konish
Keywords: news, cnbc, companies, best, option, stock, heres, purchase, cervino, employees, incentives, employee, invest, plans, company, plan, employers


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Company: cnbc, Activity: cnbc, Date: 2019-09-25
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Company: cnbc, Activity: cnbc, Date: 2019-09-25
Keywords: news, cnbc, companies, recognize, ignore, warren, invest, youll, need, buffett, emotions


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