Restricted stock is a type of compensation in which the shares are subject to certain conditions or restrictions the company sets. It is often offered to employees as part of their compensation package.
For example, your employer may offer you some ownership of the company, but you can’t immediately take it. Instead, you have to either wait for a specific term of employment or meet goals before those shares can be applied to you.
This is restricted stock, as you are being promised based on merit or time. The financial planners will have to guide you in figuring out the best way to deal with this promise. This involves understanding and deciding when you will actually get full ownership and how this will affect your taxes.
The financial planner will help you plan and make smart decisions about what to do once you own these shares.
Similar to stock options planning, our financial planners will have to take into account retirement goals, estate planning and risk tolerance. They will help you develop strategies to diversify your investment portfolio while also advising how the restricted stock award may impact their employment decisions and guide for additional equity compensation.
Our financial planners offer great insight into the entire process of restricted stock planning and help clients achieve maximum equity compensation while optimizing their overall financial situation.
Other areas of expertise that we offer is for employment considerations. Advising employees on how restricted stock awards can impact their employment decisions.
At Karstens Wealth, our financial planners are available to provide guidance and develop strategies based on your specific situation. Feel free to contact us today or call Jake at 833-657-8400