Planning for Retirement with Equity Compensation

Jan 25

Stock options and restricted stock units (RSUs) are becoming more common as part of a total compensation package. But there are differences between saving for retirement from salary and incorporating stock into a retirement plan.

Making automatic contributions to an employer-sponsored plan is the foundation of tax-advantaged retirement savings, and you want to be sure you take full advantage. But once you set it up, it happens without you thinking about it. Creating a retirement income plan from stock requires more proactive and consistent planning. It may also fit into your retirement income planning in a different place than traditional savings.

Depending on where you are in your career, you may have decades to exercise options and set up a plan to save consistently. Or you may be close enough that you’ll need to carefully plan your retirement date to vest as much as possible before employment termination.

Taking Care of the Basics

Retirement... ...