I just recently learned this and could have never guessed. My grandparents always lived in a tiny home probably worth $100k, shared one base-model mini van, clipped every coupon, and pinched every penny. Now a widow, my grandma is still frugal as ever.
Long ago, my grandpa was an officer at a bank. This I knew. They were much smaller in his time, and as is typical, he was partially compensated with stock options. He paid $16 apiece for some number of shares that has grown to 100k after years of reinvesting. My grandpa has since passed, the bank has grown, and each share is worth about $55 now. Can't argue with that return historically, yet all dividends continue to be reinvested at the market price.
My grandpa knew money, and this plan was in place when he passed 6 years ago; part of me feels like I'm just missing something. They also had, and have, a financial adviser. Further, I also know it's commonplace for officers to hold large stakes in their companies, but I'm not so sure about after retirement.
Yet, everything I've learned from my education and line of work (in finance) is sounding alarms about this. What are your thoughts? Is this not insane?
Submitted May 21, 2017 at 03:27PM by BootyPillager http://ift.tt/2qJ1Vhx
