Because the bull market has pushed up stock prices so fast in recent years, you might own more stock than you realize. Calculate the value of your portfolio and make sure it isn't too heavily skewed toward stocks. Re-evaluate the types of stocks you own. Revisit why you bought the stock in the first place and think about whether it's likely to continue meeting your criteria. Don't let the excitement of the Dow's milestone make you overconfident that all stocks will match the index's pace.
Stock options are the Lotto ticket of Silicon Valley, with one important difference.
The wealth can disappear overnight if you fail to cash in. But you can't count on that. To assess whether you're taking too much risk, Pastore suggests you first calculate how much of your net worth is tied up in your stock options and how heavily you're invested in other stocks in your industry or sector. Second, look at your age, health and family responsibilities and ask whether it's time to cash in some or all of your options. There is no rule of thumb to apply when assessing whether you are too exposed to your company stock, Kochis said.