Financial Investment Planning with Restricted Stock

 

Case Study

Facts

Client A

  • Age 38 years old

  • Occupation Tech Developer

  • Salary + Bonus $425k

Client B

  • Age 39 years old

  • Occupation Real Estate Broker

  • Salary + Bonus $215k

Child A

  • Age 8 years old

Child B

  • Age 5 years old

Source: Advisys, Inc. 2022

 
 

  • • 401k's - $620k

    • Taxable Account - $125k

    • Savings & Checking - $130k

    • Restricted Stock Units - 6,000
    - Receives 300+ units per quarter
    - Price of stock $2,300/share

    • Myriad of Employer Provided Benefits

  • • Engage in Comprehensive Financial Planning Advice

    • Maximize clients employer deferral plan to minimize tax, increase savings and provide future tax­preferred withdrawals

    • Introduce 401k + Profit Sharing and Cash Balance plan to introduce maximum salary deferral

    • Review RSU Exercise Strategies to limit tax on appreciating Tech company stock price at vesting

    • Reviewed Tax Minimizing and Risk Reduction with Internal Partners at Hedging Desk

    • Provided Exit Strategy in coordination with Clients ensemble team of partners

    • Reviewed and Implemented additional Risk Management plan

    • Allocated an on-going Investment monitoring strategy with a non-correlating

  • • Coordinating their Financial Life

    • Reduce Income Taxes

    • Divest from Individual Stock Concentration Risk

    • Investment Strategy to Reduce Volatility

    • Fund Kids College

    • Purchase Summer Home

    • On track for Retirement by age 60-65

    • Begin developing Family Estate Plan

  • • Clients Financial Life is coordinated and controlled

    • On Pace to reduce taxable income through strategies implemented above

    • Diversify and reduce risk on concentrated assets

    • Investment allocation to promote short-term needs and long-term growth

    • Continuously monitored investment and financial plan

    • Quarterly Meetings