Opportunity and Complexity of Employer Stock Programs

RSU and ESPP employer stock programs serve as valuable wealth-building tools, each presenting unique advantages and challenges, including complex taxation. Both programs require careful consideration of participation, trading windows, vesting schedules, and concentration risk. Understanding the nuances of qualifying vs. non-qualifying dispositions, wash sales, and tax withholding strategies can significantly impact client outcomes. Financial professionals play a vital role in helping clients understand and navigate these complexities.

The session will outline basic to advanced education points for clients about these opportunities, evaluation of participation benefits, timing of sales, and potential to fund broader financial goals. Common behavioral biases around company stock holdings will be explored, particularly endowment effect and status quo bias affecting sell decisions. Whether a licensed investment professional or not, understanding employer company stock programs’ technical aspects can enhance clients’ personal investment decisions and stock holding management. education and portfolio optimization strategies. This session will be facilitated by two professionals that have held thousands of conversations with employees on their stock programs.

Speakers