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Equity-based compensation can mean serious wealth, but proper planning is critical. We can help with all forms of stock compensation including:
Your stock compensation equates to a concentrated position in a single stock which can be risky. Not to mention, your paycheck also depends on that same company’s performance.
We know how important it is to plan your overall investment portfolio around concentrated stock positions. That’s why we utilize innovative strategies designed to help diversify holdings, minimize tax liability, and align wealth with long-term financial goals.
Navigating equity compensation requires specialized expertise. We help tech professionals and executives maximize wealth, minimize tax, and plan for a secure future.
Equity compensation creates complex tax implications that can significantly impact your wealth. We can help you make informed decisions about elections, exercises, and sales to optimize your after-tax returns.
Equity-heavy compensation can create cash flow challenges and concentration risk. We develop comprehensive liquidity strategies that balance your immediate needs with long-term goals.
Timing is everything with equity compensation. Our thorough analysis helps you coordinate exercises, sales, and vesting events to maximize value while managing risk and tax consequences.
Take our brief survey to learn if our advisory services are the best match for your financial goals and situation, and see if we should move forward together.
Schedule a no-cost consultation to discuss your financial goals and explore how we can help you build a personalized investment strategy.
You can’t completely avoid taxes on RSUs when they vest. RSUs taxed as regular income no matter what. However, you can manage the tax impact by planning tax-deductions around your vesting schedule. Some examples include retirement account contributions and charitable donations.
For most people, RSUs end up being their largest single stock position by far. Having too much money in one company’s stock is risky because your job and investments both depend on the same company doing well. Many professionals consider diversifying to spread that risk across different investments.
ESPPs can offer a 10-15% discount on company stock, which sounds like free money. For many people, it makes sense to participate and sell immediately to capture that discount. But depending on your tax situation and company outlook, holding those shares longer might actually be preferable.
Early exercise can start your capital gains holding period sooner and may offer tax advantages, but you may be putting your own money at risk. The decision depends on factors like cash requirements, your company’s outlook, your financial situation, and the tax implications of ISOs versus NSOs. Given the permanent financial consequences, most people benefit from modeling different scenarios before making this decision.
