Services | Employer and Concentrated Stock Planning

We specialize in maximizing the value of your concentrated stock positions. We specialize in turning paper wealth into real wealth.

Stock options

Incentive Stock Options (ISOs) — ISOs have special tax treatment. We advise clients on and manage the tax consequences of exercising and selling these options, paying particular attention to any Alternative Minimum Tax consequences.
Nonqualified Stock Options (NQs) — NQs also have a unique tax treatment that we advise on and manage the tax consequences of exercising and selling these options.
83(b) election — This is a special tax election that can provide a valuable tax benefit to clients if properly exercised within the 30-day window for when you receive stock options. We advise clients on the advantages and disadvantages of this strategy and manage the process of making this election when applicable.

Restricted stock

This is stock that is typically received as some form of compensation to a worker that has some type of “restriction” on the ownership of the stock, such as when ownership in the stock vests.
We advise and manage the unique tax considerations for clients that have this type of stock.
83(b) election — This is a special tax election that can provide a valuable tax benefit to clients if properly exercised within the 30-day window for when you receive restricted stock. We advise clients on the advantages and disadvantages of this strategy and manage the process of making this election when applicable.

Employee stock purchase plans (ESPP)

This is stock that is offered to employees through a specific plan via the employer.
Typically this stock is offered to employees at a discount based on what the value of the stock was at a specific point in time. Funds are withheld from the employee’s pay check as determined by the employee and then these funds are used to buy these shares.
We advise and manage the unique tax and investment management considerations for clients that have this type of stock plan through their employer.

Large concentrated stock holdings

One of the most important principles of investing is to properly diversify your portfolio.
Yet frequently, individuals can end up with a large portion of their portfolio in one or just a few stocks.
- You may have inherited a large position in one or a few stocks.
- You may work at a company and accumulate a large position in that company’s stock.
We advise and manage the unique tax and investment management considerations for clients that have large concentrated stock holdings.

10b5-1 Plans and trading windows for corporate insiders

10b5-1 Plans (named for the SEC Rule discussing trading by corporate insiders) allows officers, directors and other insiders of publicly traded companies to transact in their company shares at all times, not just during open trading windows, based upon pre-determined trading parameters.
In addition, these corporate insiders also need to consider the allowable trading windows when transacting in their company shares outside of a 10b5-1 Plan.
We work with corporate insiders to manage the process of transacting in their corporate shares and taking into account all of the legal and financial considerations of doing so.

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		Services \| Employer and Concentrated Stock Planning
Overview Tax Planning and Tax Preparation — Sechrest & Bloom, LLC Investment Management Planning Estate and Charitable Planning Insurance Planning Retirement Planning Employer and Concentrated Stock Planning Education Planning Employee Benefits Planning Business Planning Identity Theft Prevention Planning Secure, On-Line Client Portal		We specialize in maximizing the value of your concentrated stock positions. We specialize in turning paper wealth into real wealth. Stock options Incentive Stock Options (ISOs) — ISOs have special tax treatment. We advise clients on and manage the tax consequences of exercising and selling these options, paying particular attention to any Alternative Minimum Tax consequences. Nonqualified Stock Options (NQs) — NQs also have a unique tax treatment that we advise on and manage the tax consequences of exercising and selling these options. 83(b) election — This is a special tax election that can provide a valuable tax benefit to clients if properly exercised within the 30-day window for when you receive stock options. We advise clients on the advantages and disadvantages of this strategy and manage the process of making this election when applicable. Restricted stock This is stock that is typically received as some form of compensation to a worker that has some type of “restriction” on the ownership of the stock, such as when ownership in the stock vests. We advise and manage the unique tax considerations for clients that have this type of stock. 83(b) election — This is a special tax election that can provide a valuable tax benefit to clients if properly exercised within the 30-day window for when you receive restricted stock. We advise clients on the advantages and disadvantages of this strategy and manage the process of making this election when applicable. Employee stock purchase plans (ESPP) This is stock that is offered to employees through a specific plan via the employer. Typically this stock is offered to employees at a discount based on what the value of the stock was at a specific point in time. Funds are withheld from the employee’s pay check as determined by the employee and then these funds are used to buy these shares. We advise and manage the unique tax and investment management considerations for clients that have this type of stock plan through their employer. Large concentrated stock holdings One of the most important principles of investing is to properly diversify your portfolio. Yet frequently, individuals can end up with a large portion of their portfolio in one or just a few stocks. You may have inherited a large position in one or a few stocks. You may work at a company and accumulate a large position in that company’s stock. We advise and manage the unique tax and investment management considerations for clients that have large concentrated stock holdings. 10b5-1 Plans and trading windows for corporate insiders 10b5-1 Plans (named for the SEC Rule discussing trading by corporate insiders) allows officers, directors and other insiders of publicly traded companies to transact in their company shares at all times, not just during open trading windows, based upon pre-determined trading parameters. In addition, these corporate insiders also need to consider the allowable trading windows when transacting in their company shares outside of a 10b5-1 Plan. We work with corporate insiders to manage the process of transacting in their corporate shares and taking into account all of the legal and financial considerations of doing so.