In the jungle of salary optimization, those with commission plans certainly can't be left behind... After all the cold calling, demoing, and closing, when it's time to collect your hard-earned performance bonus, it can be a big bummer to find out that the taxman is very interested in your previous sales efforts... in their own way, of course.
What’s in a name? 🤔
With warrants, you take your bonus to the stock market, and they can be categorized under financial benefits (click on the link for our previous article)! "Oh dear, which stocks should I buy then??" No need to worry here; you don’t need to consult your inner Warren Buffet. Once you have that nice bonus, you can choose Warrants with your employer (if they offer them, of course). You can compare these warrants to a ticket that lets you buy shares of the company at a fixed price. Then, you and your colleagues hop on the market rollercoaster!
BUCKLE UP! 🎢
You keep these warrants for a (usually) short period, during which we light as many candles 🕯️ as possible for a rise in the stock price! (Note: lighting candles is not financial advice or a proven market practice.) What’s next? We return to the office the next day, and the other participating colleagues are jumping with joy—the stock price has risen! PRESS SELL!! 🤑 You just bought shares with your warrants at the fixed price (remember that privilege from above?), and after buying the shares, they are immediately sold at the current (read: higher 😏) price!! Congratulations, you are now a successful stockbroker 🙏🏻You might be thinking: "Which buttons do I press?? How many charts do I need to monitor?? And what do I fill in where??" 🥵 NO STRESS! This process is almost entirely automated! The only thing you need to watch is the stock price; if it's higher: sell! 💰
Why the hustle? 🧑💻👩💻
Wat winnen we hier nu juist mee?
- A tax advantage: by using warrants, you save on social security contributions! This means about 13% more gets to go in your piggy bank.
- Growth potential: If your company does well, the stock price rises, and your profit grows with it. It's like surfing the waves of success! 🏄♂️
Only sunshine and rainbows? ☀️🌈
What goes up must come down… Is something you must remember when using warrants. What should you consider specifically?
- If the stock price falls at that time, your warrants might be worth less than you hoped.
- You need to time your sale well. For some, this can cause unwanted or stress..
Payflip tip 💡
Warrants can be a great addition to your salary package, but it's important to understand the ride before you get in. At Payflip, we're happy to help you understand this financial rollercoaster and make the most of it!
Ready to take your salary package to new heights? Step in and enjoy the ride! 🚀💼
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