Scott is the Vice President of R&D at a biotech company and has been working there for over 11 years. Throughout his time at his current company, Scott has been compensated with a considerable amount of RSUs. With a disproportionately high level of his wealth tied to his company stock, Scott is often discouraged by the volatility in his net worth. He understands the benefits of diversification but is also aware of tax issues that could arise if he were to touch his stock options.

Scott is seeking advice from someone who understands his situation as an employee with high levels of stock compensation. Moreover, he is looking to minimize taxes as much as possible while making sure that his wealth is at a better position to build over time till he reaches retirement.

For Scott, we will work together to identify and evaluate all of the available tax strategies when it comes to his employee stock options. We will create an optimal strategy for the 10b5-1 (carefully considering insider trading policies) that aligns with Scott’s financial goals. Our focus will be to make sure we’re implementing a suitable strategy for his stock options, so that his overall portfolio is aligned to his circumstances and goals, as well as for his taxes so that he’s avoiding any costly tax mistakes. By working with us, turmoil market movements don’t trouble him anymore as he’s gained confidence on his investments and financial plan.

This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.