It’s not uncommon for individuals to hire professional investment advisors to help them determine the best ways to make their money work for them. After all, the world of stocks, bonds, mutual funds, and diverse portfolios is enough to make the average adult’s head spin.

You don’t necessarily need to become an expert to manage your investments, but you will most likely need to hire someone with the expertise to offer guidance so that you can make informed decisions about where your money is going. The prospect of hiring a financial advisor is really no different than taking your car to a mechanic for service or calling tech support when your computer is on the fritz.

What about the investment opportunities you receive through employment, though? Even if you have an advisor for your personal investments, you might not think to ask this professional about the stock opportunities offered by your employer.

However, stock option consulting is a service you should definitely take advantage of if your employer provides you with investment opportunities. If you’re not sure what stock option consulting is or how it benefits you, here are the basics.

What is Stock Option Consulting?

Businesses may offer any number of investment opportunities to employees as benefits, or a means of enhancing the compensation they receive through salary. These opportunities can be granted as a hiring incentive or given as bonuses later on, just for example.

In some cases, employees receive stock grants, by which they gain ownership of stocks at no cost. This is sometimes called Employee Stock Ownership Program, or ESOP.  You might also receive stock options, which generally vest over time and offer you the option to purchase company stock at a reduced rate.

Many businesses also provide employees with the option to pay into Employee Stock Purchase Plans (ESPPs). The idea here is that you put a set amount of money from every paycheck into an investment account over the course of, say, a year.

At the end of the investment period, the money will be used to purchase company stock, generally at a set amount or percentage below the lowest value of stock during the period. Once employees are granted stock, exercise their options, or purchase stock through their ESPP, they must decide whether to keep stock or sell it.

This is where stock option consulting comes into play. Your investment advisor helps you to make informed decisions about managing your personal investments, so why wouldn’t you turn to this professional for guidance when it comes to the investment opportunities you receive through your work?

Why Do I Need This Service?

When it comes to stock grants, stock options, ESPPs, and so on, it’s easy to get confused about what you have and how to manage it. Investment advisors that offer stock option consulting services can help you to better understand what your employer has given you and how best to manage your professional investments.

Knowing when to buy, when to sell, how to manage your grants, and how to deal with taxation is important if you want to get the most out of the investment opportunities. With appropriate stock option consulting you can get the guidance you need to make the best decisions about your employee stock options.