The Power of a Comprehensive Financial Plan for Employees with RSUs

As an employee at a publicly-traded company, getting Restricted Stock Units (RSUs) is like hitting the jackpot in your pay package—it’s a chance to build serious wealth. But let’s keep it real: RSUs come with tax headaches and planning challenges that can feel like a lot. That’s where a solid, personalized financial plan comes in to make those RSUs a cornerstone of your dreams. According to Vanguard’s study, "Putting a Value on Your Value: Quantifying Advisor's Alpha" (2022), a financial advisor can boost your portfolio by about 3% through smart strategies—something they call “Advisor’s Alpha.” Let’s dive into how you can make your RSUs shine with a plan that’s got your back, plus some questions to get you thinking.

What’s Advisor’s Alpha All About?

Vanguard’s research breaks down how advisors add value, and it’s pretty impressive. Here’s the rundown:

Source: Vanguard, "Putting a Value on Your Value: Quantifying Advisor's Alpha" (2022)

These strategies can make a big difference in how your RSUs grow and support your goals. How could these ideas fit into your financial plan?

Navigating the RSU Rollercoaster

RSUs are great, but when they vest, they’re taxed as ordinary income based on the stock’s market value. If your company’s stock is performing well, that could mean a hefty tax bill. A good plan might involve timing your share sales or using tax-advantaged accounts to lighten the load—Vanguard says tax-efficient asset location alone could add up to 60 basis points to your returns. Plus, you don’t want too much of your wealth tied to your company’s stock, especially when the market gets shaky. Diversifying your investments keeps your portfolio aligned with your big goals, like buying a house, funding your kids’ college, or planning that dream retirement. Ask yourself:

• How can I time my RSU sales to keep taxes manageable?
• Is too much of my wealth tied to my company’s stock, and how can I diversify?

Build Your Financial Dream Team

To make your RSUs work harder, you need a crew of pros: a financial advisor, CPA, estate planning attorney, and an independent property and casualty (P&C) specialist. Here’s how they help:

• Financial advisor: Your guide to the RSU game, using strategies like behavioral coaching (up to 200 basis points) and tax-loss harvesting (up to 150 basis points) to boost your returns, per Vanguard’s study. They’ll help you decide when to sell RSU shares and diversify your portfolio.
• CPA: Your tax guru, finding ways to save money on those big vesting events and maximize deductions. What tax strategies can you use to keep more of your RSU cash?
• Estate planning attorney: They’ll help you plan for the future, maybe setting up a trust to pass your wealth to your family securely. How do you want your wealth to support your loved ones?
• P&C specialist: As your wealth grows, they’ll recommend insurance like an umbrella policy to protect your home, car, and other assets. Is your growing net worth covered for unexpected risks?

This team works together to create a plan that feels like a safety net for your financial life.

Make Your RSUs Part of Your Big Picture

Your financial advisor might suggest spreading your RSU proceeds into a balanced portfolio, while your CPA handles the tax side of selling shares, maybe using tax-loss harvesting to offset gains. Your estate planning attorney can fold those assets into a trust for your family’s future, and your P&C specialist ensures your wealth is protected. Vanguard’s research highlights how advisors keep you calm during market swings—super helpful when your RSUs are tied to your company’s stock. Regularly check in on your plan to adjust for stock price changes, tax law updates, or shifts in your life. How can you tweak your plan to stay on track for your goals?

Your RSUs, Your Future

With a tailored plan and a team of experts, your RSUs can be more than just a paycheck perk—they’re a path to your dreams. Vanguard’s study shows that strategies like behavioral coaching and tax-loss harvesting can add up to 3% to your portfolio’s value, and your team makes sure every decision aligns with your goals. Whether you’re eyeing a comfy retirement, a new home, or a legacy for your kids, this approach lets you focus on what you love—your career, your family, your passions—knowing your financial future is solid.‍

What’s your next step to make your RSUs work for you?

This blog is provided for general informational purposes only and does not constitute personalized financial, tax, or legal advice. Investment advisory services offered through Tempo Wealth, an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. For more information, please refer to our Form CRS and Form ADV Part 2A.