Must-Knows About Restricted Stock

These grants can seem like mad money, but they can add up to serious money over time. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=30640&elqTrackId=5c8cfd5763564b2aab81c408111b007f&elq=c9fb42e2401e4427b3caba485e0b7ea4&elqaid=30640&elqat=1&elqCampaignId=14109) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] Just a few short weeks ago, the prevailing narrative about the economy and stock market was straightforward: The economy would continue to strengthen as COVID-19 ebbed away, providing an ongoing tailwind for stocks but bringing the potential for higher interest rates and inflationary pressures. Fast forward a few weeks and that story has gotten a bit more complicated. The delta variant of COVID has been spreading across the globe with frightening rapidity, stoking fears of slowing growth inside and outside the U.S. Those worries slammed stocks earlier this week, sending the S&P 500 down by 1.6% on Monday and slamming the cyclically oriented Dow Jones Industrials Average by more than 2%. Treasury yields declined, as fearful investors sought out safety. Stocks rebounded and have come close to scraping new highs, but it’s anyone’s guess whether the volatility will persist or whether stocks will continue their upward climb. (Anyone who acts as though they know ought not to be trusted.) But these periodic bouts of volatility are a valuable reminder to make sure you’re clear on the difference between [volatility and risk](. That distinction might only seem important to investment eggheads, but it’s a valuable one for investors at all life stages. If you’d like to delve into whether you’re taking an appropriate amount of risk in your portfolio, [my 7-point risk drill]( helps you make that assessment in a concrete way. And if you need additional reason to keep the faith in stocks for your long-term investments, I highly recommend [John Rekenthaler’s entertaining and useful piece]( examining investment appreciation versus the appreciation of almost everything else. His measuring stick? Babe Ruth’s salary. Finally, the strong economy and the U.S.’ emergence from the pandemic has prompted lots of workers to seek new positions, and the hot hiring market means that many folks are deciphering new benefits packages. (One of my 20-something nieces received 3 job offers on a single day this past week!) This week I kicked off a series on various forms of employer stock, which is increasingly showing up in the pay packages for rank-and-file workers. First up: a discussion of [restricted stock units]( (RSUs), with deep dives into stock options and employee stock ownership plans (ESOPs) in subsequent weeks. I hope you’re enjoying high summer! Christine Benz [Must-Knows About Restricted Stock]( These grants can seem like mad money, but they can add up to serious money over time. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Rebalancing: What You Need to Know]( How to keep your retirement assets on track. [Read More]( [Risk, Not Volatility, Is the Real Enemy]( Grant us investors the wisdom to know the difference. [Read More]( [Manisha Thakor: Beware of 'Junk Personal Finance']( The author and financial educator discusses how social media affects financial well-being, how women can close the wealth gap, and why young people should steer clear of individual stock trading. [Read More]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2021 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602