Equity-Compensated Professionals
Equity compensation can be one of the most rewarding—but also one of the most complex—components of your financial life. Whether it’s RSUs, stock options, or ESPPs, understanding how to optimize your equity while minimizing taxes is essential for building long-term wealth. At AG Wealth Management, we specialize in helping tech professionals like you navigate these challenges with confidence.
How We Can Help
Balance the tradeoff between living well today, paying down debt, and investing for the future.
Full analysis and gameplan for your equity compensation plan (ISOs, NSOs, ESPP, RSUs)
Rent vs Buy decisions.
Help you budget and save for upcoming big expenses & goals.
Analyzing and optimizing your employer benefits.
Strategies to optimize your tax liabilities. (We even prep and file your personal taxes at no additional cost!)
Evidence-based investing that fits your goals and time horizon.
We've helped clients understand their equity at these companies (and more)
Case Study
Client Profile:
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Name: Alex
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Age: 35
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Location: New York City
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Profession: Senior Software Engineer at a major tech company
Challenge:
Alex had equity from both their current and previous employers, including RSUs, ISOs (from his current employer), and appreciated stock from an earlier position he held. While the equity was a significant part of his net worth, it created unique challenges:
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Managing tax liabilities on RSU vesting and ISO exercise.
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Diversifying out of old company stock that had grown substantially.
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Fixing inaccuracies in prior tax filings to avoid overpaying on taxes.
What We Did:
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Integrated Direct Indexing:
For Alex’s old equity, we implemented a direct indexing strategy to exclude the stock from the index. This allowed Alex to maintain the desired diversification while systematically selling shares using a targeted tax band approach. -
Tax Return Review:
While reviewing Alex’s tax return, we discovered a mistake in how the cost basis on RSUs was reported. The error had caused Alex to pay taxes twice on the same income. We worked with the tax preparer to amend the return, recovering thousands of dollars in overpaid taxes. -
Equity Planning and Diversification:
We developed a step-by-step plan to sell RSUs from the current employer and reinvest the proceeds into a diversified portfolio. For ISOs, we created a phased exercise plan to avoid triggering AMT
The Results:
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Saved over $25,000 in taxes in year 1 through targeted equity and tax strategies.
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Recovered $9,000+ from prior tax overpayments.
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Diversified Alex’s portfolio to reduce risk and align investments with their long-term goals, including buying a home.
