Subject:   Excercising stock options
Date:   Sun, 2 Nov 2003
From:   Marty

Dear Mike:

I plan to retire at the end of this year and have some non qualified stock options that I haven’t exercised yet. Is there any advantage to exercising and holding the stock versus exercising and selling them?

Thanks,
Marty

Answer

Date:   28 May 2004

Hello Marty,

There is no tax advantage in holding the stock. When you keep the stock, you are in the same position as if you had sold them and bought them back.

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, “Executive Tax and Financial Planning For Non-Qualified Stock Options”.