facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
The Equity Divestment Plan Thumbnail

The Equity Divestment Plan

Armed with the experience of helping early startup employees, executives, and founders navigate through the complexities of their lives, and after over six years of working in a more "traditional" financial advisor capacity focusing on gathering investments to manage and seeing "AUM" as the number that measures an advisor's success, I started DRS Financial Partners at the end of 2020 to do more. Young tech professionals still need great financial advice, even if they don't want their money managed professionally, and DRS was built to address that need. In fact, one of my biggest motivations for starting DRS was how many successful executives I met who wished they had solidified their financial foundations earlier in their careers - long before they joined the ranks of the "high-net-worth".

Over the past eight months, my knowledge and experience in equity compensation opened the doors to some amazing opportunities, but more importantly, has shown me how many people want and need expert guidance around their equity - even if they DIY the rest of their financial planning and investment management. Therefore, after being approached by several people for guidance specifically around their equity divestment strategies over the last few months, I'm excited to introduce the Equity Divestment Plan! My goal with the Equity Divestment Plan is to help you make the most out of your equity by selling the right shares and holding on to the others, without the pressure of committing to an AUM or ongoing financial planning relationship.

Your Equity Divestment Plan includes...

  • An initial 30-minute goals and objectives call to understand your timeline, sell-down and options exercise goals, and holding objectives.
  • A 1-hour mid-point call or video meeting to explore general strategies and potential outcomes in order to narrow down the final plan.
  • A written equity acquisition and divestment strategy over your required timeframe with the aim of strategic profit maximization and multi-year tax efficiency.
  • A general recommendation of the order to exercise and sell your shares in case your situation or the stock price diverges substantially from the written plan.
  • An approximation of the federal tax impact for your proposed divestment and exercise strategies.
  • A 1-hour call or video meeting to deliver the strategy.

The price of the Equity Divestment Plan is...

Based on the types of equity grants you have and the number of grants you have, plus an additional fee for unique complexities. Refer to the Equity Divestment Plan page for the most current pricing.

As of October 20, 2021 the price is $750 plus:

Grant Types (ISO, NSO, RSU, RS) Number of Grants Unique Complexities
1 type +$0 1-2 grants +$0 Any additional cost will be agreed on before the engagement.
2 types +$250
3-4 grants +$125
3 types +$375
5+ grants +$250

For example...

  • If you have two ISO grants, the price is $750
  • If you have two ISO grants and one NSO grant, the price is $1,125 ($750 base + $250 for ISO and NSO grants + $125 for three grants).
  • If you have three ISO grants, one NSO grant, and three RSU grants, the price is $1,375 ($750 base + $375 for ISO, NSO, and RSU grants + $250 for seven grants).

Is the Equity Divestment Plan for you?

You'll probably benefit from the personalized and expert guidance if you want professional help with your divestment strategy but prefer to DIY the rest of your planning, already work with an advisor but need specialized guidance around your equity, are unsure of the current and future impact of selling out of different grants, or think that getting it right (or wrong) could have a big impact on the outcome.

The Equity Divestment Plan is limited in scope by design. I offer custom project-based financial guidance for times where the Equity Divestment Plan doesn't address all objectives, and ongoing comprehensive planning is still the core of my practice. If you aren't sure what type of planning engagement makes the most sense for you, please don't hesitate to send me an email or schedule a time to talk,