How does equity compensation affect a client's plan?

How do RSUs, ISOs, or NSOs affect a client's financial plan?

  • Entering equity compensation (RSUs, ISOs, or NSOs) into a client's Profile will have a few different effects on their plan.
  • First, any tax consequences of shares vesting will be included in the plan. For example, vesting of RSUs will add imputed income to the tax calculation in the year of vesting, based on the value of the shares and their growth rate as entered.
  • Second, shares will now be available to be used towards goals or expenses that exceed the available funding from other sources. In the Retirement goal, you can manually override the order of distributions from accounts in the What Ifs tab for Distributions.
  • You can use the "+" or "-" icons to add and remove accounts from the retirement distribution hierarchy, or click and drag the arrow icon to change the order of accounts to be distributed.