Glossary – Asset Management
and Retirement Planning Terms

In a typical ESPP, employees are given an “option” to purchase employer stock at a favorable price at the end of an “offering period.” Many companies choose to implement an ESPP that qualifies for preferential tax treatment under Section 423 of the Internal Revenue Code.  Wharton Wealth Planning can help evaluate these programs and determine…

RSU’s are actual shares of stock that are granted to an employee with restrictions as to when the employee may sell or otherwise dispose of the stock. The vesting of restricted stock is typically based on specific performance goals and/or, more commonly, the time an employee works at the company. One common goal of financial…

The most common form of stock options, NSOs, may be granted to various stakeholders including employees, contractors, and directors of a company. NSOs feature relatively straightforward taxation: When exercised, the difference between the exercise price and the underlying stock price is taxed as ordinary income. It’s generally reported on a Form W-2. When the stock…

ISOs and other forms of equity compensation can help build wealth over time, so you want to make sure you have a clear idea of how to best handle them. We can help you understand when to exercise your options and clarify any tax implications.

Wharton Wealth Planning can assist in optimizing clients’ compensation packages to help plan for a secure retirement. We can assist in summarizing and estimating the after-tax impact of your compensation components. Our process is to develop a detailed plan that addresses exercising options, reducing risk, and mitigating tax consequences.

A concentrated stock position is any large accumulation of stock in one company relative to the investor’s total wealth. Longtime employees, executives, and investors may end up with a significant percentage of their total investable assets invested in the one stock, putting them in a concentrated stock position. In instances when a large portion of…