The Situation
- 48-year-old scientific leader at a publicly traded biotech company
- $500K+ annual compensation between salary, bonus, and equity
- $1.2M of vested company stock and additional unvested equity awards
- Significant concentration of wealth in employer stock
- Multiple stock option grants with different exercise prices and expiration dates
- Maximizing employer retirement plan but had no broader tax-efficient investment strategy
- $350K mortgage on primary residence
- Two children approaching college age
- Adequate employer-provided life insurance but no independent disability coverage
- No formal estate plan beyond basic beneficiary designations
Our Approach
- Developed a systematic strategy for diversifying concentrated employer stock while considering tax implications
- Evaluated stock options and equity awards in the context of the client's overall financial plan
- Coordinated retirement contributions and tax-efficient investment strategies across account types
- Built college funding projections to determine how much could be allocated toward education without compromising long-term goals
- Reviewed mortgage strategy and cash reserves in relation to upcoming financial needs
- Evaluated independent disability and life insurance needs beyond employer benefits
- Created a comprehensive estate planning strategy and reviewed beneficiary designations
Collaborating with Specialists
- Worked with the client's CPA to coordinate equity compensation decisions, charitable giving opportunities, and tax planning
- Introduced her to an estate planning attorney to establish updated wills, trusts, powers of attorney, and healthcare documents
- Collaborated with an insurance specialist to evaluate disability and life insurance coverage independent of the client's employer
Significant Results
- Reduced dependence on a single company for the client's financial future
- Created a diversified investment portfolio aligned with long-term goals and risk tolerance
- Developed a clear strategy for managing and monetizing equity compensation
- Improved visibility into retirement and college funding goals
- Strengthened protection against disability, premature death, and other unexpected events
- Integrated tax, investment, insurance, estate, and career considerations into one cohesive plan
- Gave the client greater confidence to make career decisions without losing sight of her broader financial goals