Here's what executives with employer stock need to be doing today.

March 11, 2020

As markets continue a downward volatile trend, led by Coronavirus fears and now oil market shakeups, there are a lot of executives wondering what this means for their wealth. A lot of these folks who in 2019 might have back-burnered their finances and held off on liquidating stock options as the market roared to new highs. With a shock to the system they're now left thinking, "I should have..."

If this is you, or your colleagues in the office, here's a couple of actions for today.

Patience is a virtue...

First, take a pause before taking any action. The best investors are unemotional. Is fear driving your decisions? Or are you executing your long-term plan? Remember, we've been through many economic messes before and yet you've made it to where you are today. Be patient and don't be short sighted.

Market timing is a losing game...

Next, don't try to time the market. This whipsaw action is exposing market timers. With up and down swings of 3-8% on any given day, you can't consistently get in and out fast enough. If you try, that's just gambling. Good luck with that.

Have a plan and stick to it...

Have a plan. In our office, we talk about determining the real problem and solving it. Don't just throw something at the wall and hope it sticks. If you don't have a strategy in place, you need one. You need to know why your actions (and investments) help your overall mission, otherwise you'll be more likely to bounce around, making emotional and non-strategic decisions that will likely hurt your long-term vision.

When in doubt, get help...

Work with a pro that specializes in advising people like you. Let's be honest, you probably don't have the time to deal with this on a day to day basis. Having a sounding board to discuss ideas, to help develop and execute your plans is just smart. There's a reason the wealthiest and most successful executives have advisors. Even Vanguard estimates the net value of a good Advisor to be 3%, and I would argue that to be especially true for executives with complex compensation and benefits. If you're an executive who would like a second opinion and verification of your plans, head over to Spurstone's "Verify Your Plan" page to learn how we can help improve your financial plans without requiring you to move all your wealth. 

-Tim Golas, Partner @ Spurstone - Architects of Executive Wealth

This information is for educational purposes only and should not be construed as specific advice. Spurstone is a privately-owned, Connecticut-based fiduciary firm that specializes in advising stock-compensated corporate executives across the country. Visit Advisory services provided by Spurstone Advisory Services, LLC.