When you exercise your company stock options, it can help to get a better feel (in advance) for how the after-tax proceeds might impact your life.

For younger couples, a major liquidity event can often mean significant changes in lifestyle (work/family/taking care of loved ones) much sooner than expected.

That was the case for this couple. After their company’s IPO, there were many moving parts to tackle, in a very short period of time. To help them gain clarity, we added a few simple line items to their balance sheet, which interacted, in real-time, with a custom equity compensation schedule we built using their specific stock grants, strike prices and market values.

These simple line items gave them more perspective on how allocating the net proceeds from stock sales in different combinations of income and growth funds could affect their cash flow (and return on investment), now and over time, as more of their shares vest.

Thanks Vernon Eberly, CFP® for a quick rundown.

Disclaimer: For information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation.