As a fiduciary financial advisor in Alpharetta, Holland Capital helps tech employees with stock options decide when to exercise, what to keep and how the options fit the rest of their portfolio. Planning runs by video and phone, with in-person meetings by appointment at Avalon.
Options on paper. Real decisions about when to act.
Alpharetta has a large technology workforce, with major offices for companies such as Equifax, Fiserv and ADP. Nearly four in ten households have incomes of $200,000 or more, and more than a third of workers work from home.
Stock options can grow into a large part of what you own. But they come with deadlines, tax rules and the risk of holding a lot of one company. The choice of when to exercise can matter as much as the number of options you hold.
Before you act on anyone’s advice about them, ask whether that person is a fiduciary and how they are paid.
Knowing What You Hold
We start with your grant documents. Each grant has a type, a strike price, a vesting schedule and an expiration date. Your grant may give you a limited time to exercise vested options after you leave the company.
With those facts on one page, the decisions are easier to see.
How Options Are Taxed
Nonqualified options usually create ordinary income when you exercise, based on the gap between the strike price and the market price. Incentive stock options are taxed differently, and exercising them can create an adjustment for the alternative minimum tax. How the shares are taxed when you sell depends in part on how long you held them.
Our page on capital gains tax planning explains how holding periods affect the rate.
How Much of One Company to Hold
Even a strong employer can have a bad year. If your options, your salary and your 401(k) all depend on one company, a drop can hit all three at once.
We set a target for how much company stock you are comfortable holding, then plan exercises and sales to move toward it over time.
Fitting Options into the Whole Plan
Option proceeds can pay down debt, fund a goal or be invested for later. If proceeds are invested, our investment management builds them into the rest of your portfolio with the company stock exposure in mind.
How We Work with Clients in Alpharetta
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your option grant agreements, your latest equity account statement, a recent pay stub and last year’s return.
The outcome is a written plan for exercising and selling, with the tax estimate for each step.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Alpharetta primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center at 8000 Avalon Boulevard.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Alpharetta at 2845 Old Milton Parkway.
We work with clients throughout Georgia. You can see the other Georgia communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
When Should I Exercise My Stock Options?
There is no single right time. It depends on the option type, the expiration date, your taxes and how much of the company you already hold. We compare the choices with your numbers.
How Does a Fiduciary Financial Advisor Help with Stock Options?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a tech employee, that means advice on your options, your other savings and your taxes together, putting your interests ahead of ours.
Proceeds you invest with us raise our fee, and we point that out when it applies.
Can Alpharetta Clients Meet in Person?
Yes, at the Regus center at 8000 Avalon Boulevard, by appointment.
Most follow-ups fit easily into a video call.
Photo: Thomson200 / Wikimedia Commons / CC0, cropped.
