Frequently Asked Questions
What should I do with my RSUs as they vest?
There's no universal answer, because it's really two questions: how much employer stock your plan should carry, and what selling costs you in taxes this year. We build a standing decision rule for each grant so vesting dates stop being decisions you make under pressure.
Why did I owe more in April when my RSUs already had taxes withheld?
Because RSU withholding is typically done at a flat supplemental rate, which can sit well below the bracket your total income actually puts you in. The gap becomes a bill at filing time. We plan for it during the year, in coordination with your CPA, so it stops being a surprise.
Do I need an 83(b) election for my RSUs?
Usually this question is really about restricted stock, not RSUs. Standard RSUs generally can't take an 83(b) election. If you hold restricted stock awards or early-exercise options, the election window is short, generally 30 days from grant, and missing it can't be undone. If that clock might be running for you, it's a conversation to have now, with your CPA in the room.
When should I exercise my stock options?
It depends on the type of option, the spread, your tax bracket this year versus next, and how long the clock has left. Certain exercises can also trigger the alternative minimum tax, a separate tax calculation that can apply to gains you haven't sold yet. We model the scenarios before year-end while the timing windows are still open, in coordination with your CPA.
How much company stock is too much?
It depends on how much of your future is already tied to your employer through salary, bonus, and unvested grants. We look at your total exposure to the company, then build a diversification schedule that fits your plan and your tax picture.
Why do my deferred compensation elections matter so much?
Because they generally lock in long before the money pays out, and they set the timing and tax treatment of income you may receive for years. We review elections against your retirement date so the payout schedule works with your income plan instead of against it.
I already get advice through my company's stock plan platform. Why would I need this?
Those platforms are built to administer grants for every employee, not to plan around your full picture. We look at your equity next to your taxes, your other investments, and your retirement timeline, which is where most of the money is won or lost.
What happens to my equity when I retire or leave?
Every plan is different: some grants accelerate, some forfeit, some start a clock. We map the treatment of each grant before you set a retirement date, so the date is chosen with that picture in view.
Are you a fiduciary?
Yes, in our fee-based advisory relationships. As a CERTIFIED FINANCIAL PLANNER® professional, Nick is also held to a fiduciary standard under the CFP Board's Code of Ethics.
