Qualified Small Business Stock: A Powerful Tax Planning Opportunity
Layoffs are back en vogue across the technology industry, creating more career insecurity than has existed in a long time. As a provider of executive financial counseling services for technology leaders, we understand the unique challenges faced in managing your finances, especially during this period of increased uncertainty.
We work with people at some of the biggest names in tech, including Google, Microsoft, Meta, Twitter, Lyft, Figma, and Stripe, to help leaders like you navigate the ever-changing landscape of Silicon Valley and achieve your financial goals.
And let’s be clear: Unlike many firms, our comprehensive wealth management services are specifically designed to benefit those in the tech industry. We take pride in our ability to provide personalized, one-on-one attention to our clients and offer customized financial planning services to help address your multifaceted needs.
The five-step framework we recommend helps you balance competing priorities and make informed decisions both now and going forward.
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1
Take stock
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- How much did you receive? How will it be paid? RSUs, NSOs, ISOs, and restricted stock may have different tax implications.
- Are you saving enough, based on conservative assumptions about company stock performance? As the saying goes, “if the stock does well” isn’t a financial plan.
- What is the estimated tax liability? What can you do to minimize it prudently?
- Where will you put the money until you have a plan?
- What are your short- and long-term financial needs and goals?
- Do you have a trusted team of advisors who can help you manage your finances?
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2
Make an investment plan
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- How much should you set aside for living expenses, taxes, and other shorter-term goals?
- What type of investment return do you need to accomplish your longer-term goals?
- What level of volatility are you comfortable with when investing?
- How can you restructure your portfolio to maximize after-tax returns?
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3
Write an insurance checklist
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- Should you consider using life insurance to cover your estate taxes?
- Do you have a personal umbrella liability insurance policy?
- Do you have an asset protection strategy in place?
- Do you have the right type and amount of coverage (homeowners, disability, long-term care)?
- Should you increase deductibles?
- Will you need a personal articles policy for items like jewelry and art?
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4
Consider your estate-planning priorities
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- Are there any new or unique assets that need to be addressed from an estate-planning perspective?
- Do your estate planning documents accurately reflect your wishes?
- Should you consider setting up a trust?
- Who will manage your finances and make health care decisions if you’re unable to do so?
- What, if any, strategies should be used to minimize future estate taxes?
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5
Think about philanthropic planning
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- Do you want to pay for a loved one’s education? If so, how (and how much) will you pay?
- How will you handle requests from loved ones to borrow money?
- How much of your new wealth do you want to allocate to charitable gifting?
- What strategies make the most sense for your charitable gifts?
Do not let the challenges of the tech industry hold you back from achieving your financial goals. We can assist with everything including cash flow planning, investment strategy (including alternative and private investments), executive compensation (including equity/concentrated positions), risk management and insurance, and financial and estate planning. Our team of experts will take the time to understand your specific financial situation and develop a tailored plan that meets your unique needs and goals.
At Cerity Partners, we understand the importance of building long-term relationships with our clients. We work closely with you to establish trust and a deep understanding of your financial situation. Our executive financial counseling services are designed to help you take control of your finances, build a solid financial foundation, and build long-term stability and wealth. Contact us today to learn more about how we can help you succeed.
Meet Myles VanderWeele
Myles is a Partner based in the San Francisco office. He provides investment and financial planning advice to help clients achieve their short- and...Read more
Meet Myles
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