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Our Client

Success Stories are our Success Stories

People just like you choose BrightPath to help chart their financial future

We’ve found that people come to a financial planner for all kinds of reasons. Whether you’re just starting out, hitting your stride mid-career, or preparing to retire, our advice and plans can make the most of your assets.

 

Executives, Professionals and Entrepreneurs all choose BrightPath to grow and preserve their wealth. Below are some cases that represent a sample of the ways we have helped clients.  Please reach out to us for a consultation to see how we can help you.

 

We helped a family tax-efficiently diversify employer stock holdings 

A tech company sales executive and his educator wife became concerned about the complexity of the husband’s executive compensation package.  He had joined his employer while it was a private firm and it had since become a very successful public company.  His compensation included Incentive Stock Options, Restricted Stock Units and an Employee Stock Purchase Plan. 

THE ISSUE 

Stock price growth had led to an over-concentrated position of employer stock. 

The value of the husband's stock compensation had grown to a level at which it accounted for a substantial portion of the family’s net worth.  The particular stock was highly volatile and increased the risk profile of their portfolio.  Each of the various types of stock compensation had differing income tax treatments, vesting dates and stock acquisition dates so care was necessary when considering tax efficiency.

OUR SOLUTION


Tax efficiency, while appropriately diversifying the holdings.

We discussed our client's comfort level for reducing exposure in the husband’s employer stock.  We came to consensus regarding a reasonable amount of employer stock to hold in their portfolio.  We then reviewed with our client the various tax treatments of each executive compensation plan, and worked with the client to select specific lots to exercise/sell that would minimize their income tax burden. 

For the future, we developed a systematic plan to tax efficiently manage risk by diversifying the company stock and employee stock option holdings into other securities.

Finally, we helped the client alleviate all taxes on a portion of the employer stock by transferring high gain stock lots to a Donor Advised Fund for future charitable giving.  The client will never have to pay capital gains taxes on the transferred securities, received a current tax deduction for the contribution and has invested in their future charitable giving intentions.     

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