As a fiduciary financial advisor in Cary, Holland Capital helps technology employees in their 40s and 50s decide what to keep, what to sell and how their company shares fit a retirement date. We work with clients in Cary by video and phone, and meet in person by appointment at the Regus center on Weston Parkway in Cary.
Stock pay adds up quietly.
Cary has grown to about 184,000 people, and more than a third of its working residents work from home.
If part of your pay comes as restricted stock units and a stock purchase plan, a new batch of shares may arrive every quarter. After a few years, your employer’s stock can become one of the largest things you own.
That can be good news. It also means your job and a large part of your savings depend on the same company.
How Restricted Stock Units Are Taxed
Restricted stock units, or RSUs, are taxed as ordinary income when they vest. The value on the vesting date is added to your pay for the year.
Your employer withholds tax when the shares vest, but the amount withheld may be less than the tax you owe. For higher earners, that can leave a balance due in April.
After vesting, the shares are yours. Any gain or loss from that point is a capital gain or loss when you sell.
How a Stock Purchase Plan Works
An employee stock purchase plan, or ESPP, lets you buy company shares through payroll, often at a discount.
How a sale is taxed depends on the plan’s terms and how long you held the shares. Holding longer can change the tax, but it also leaves more of your money in one stock.
The cost basis on your brokerage tax form may leave out income already counted on your W-2. If it is not corrected on your return, you may pay tax twice on the same income.
Our guide on selling company stock walks through the choices.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
A Plan for Selling on a Schedule
A selling plan sets how much of each new batch you keep, and when you sell the rest. Setting rules ahead of time takes some of the guesswork out of each decision.
The money from each sale can go toward the goals in your plan: savings for retirement, cash reserves, or paying down debt.
For shares that have grown a lot, there are ways to lower the tax as you sell. Our guide on reducing capital gains on concentrated stock explains several of them.
At Holland Capital, investment management for a tech employee starts with how much of the household already rides on one company.
How We Work with Clients in Cary
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 latest tax return, recent pay stubs, your stock plan account statements and vesting schedule, and a statement for each investment and retirement account.
We map when your shares vest, what each sale would cost in tax, and how the proceeds fit your plan and your retirement date.
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.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Cary, we meet by appointment at the Regus center at 15000 Weston Parkway in Cary, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Cary.
We work with clients throughout North Carolina. You can see the other North Carolina 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
Should I Sell My RSUs as Soon as They Vest?
It depends on how much of your savings is already in company stock and what the money is for. Selling at vest can limit how much rides on one company, and there is often little added tax at that point.
Some employees hold part of each batch. A written plan sets the split ahead of time, so each decision is not made on the day.
Why Work with a Fiduciary Financial Advisor on Stock Pay?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For stock pay, our advice covers the shares you hold with your employer’s stock plan provider, not only the accounts we manage.
Our guide on planning for Cisco employees shows how this works for one large Triangle employer.
Where Can We Meet in Cary?
The Regus center at 15000 Weston Parkway, by appointment.
Questions about a vesting date or a sale can often be handled in a short video call.
Photo: HeavenlyHedgehog of English Wikipedia / Wikimedia Commons / CC BY 2.5, cropped.
