Navigating an initial public offering (IPO) can be a pivotal point in a company’s lifecycle. For professionals and early employees, especially in San Francisco’s tech-forward environment, this process often involves complex financial considerations, particularly when equity compensation is involved. Stock options and restricted stock units (RSUs) offer potential value but also come with tax and liquidity challenges that require informed planning.
Twin Peaks Wealth Advisors provides IPO planning in San Francisco, CA, tailored to individuals involved in IPO events, acquisitions, or other equity-driven liquidity milestones. With local insight and a focus on the needs of professionals in the Bay Area, Twin Peaks Wealth Advisors offers structured guidance based on the nuances of equity compensation.
Working With Twin Peaks Wealth Advisors
Those engaging with Twin Peaks Wealth Advisors may receive input from a two-advisor model: one advisor focused on investment strategy and another on financial and tax planning. This structure is designed to address both technical analysis and broader financial decision-making.
Twin Peaks Wealth Advisors provides educational resources that help clients better understand the type of stock options they hold (e.g., ISOs, NQSOs, RSUs), along with potential tax implications. By collaborating with tax professionals, Twin Peaks Wealth Advisors aims to support efforts to manage potential exposure to ordinary income, capital gains, and alternative minimum tax (AMT).
Planning discussions typically include analysis of current option values, as well as estimates of potential pre- and post-tax values. Clients are often presented with scenario-based modeling to visualize outcomes under various conditions.
Additional considerations may include timing and strategy questions, such as when and how to exercise options, how to approach a lock-up period, and potential methods for addressing liquidity needs and investment diversification.
Overview of IPO Planning Packages
Twin Peaks Wealth Advisors offers structured planning packages based on the type of equity held and the complexity of each individual’s financial situation:
Starter Package
Designed for those with RSUs, this package covers:
- Key questions around selling timing
- Tax withholding elections
- Market impact scenarios
- Cash flow and investment considerations
- CPA coordination
Essentials Package
This package is structured for individuals holding ISOs or NQSOs, and includes:
- Exercise strategy development
- Consideration of AMT and 83(b) elections
- Cashless exercise and funding options
- Scenario modeling and lock-up period analysis
- Collaboration with tax advisors
- Investment and liquidity planning
Complete Package
This comprehensive option includes all elements of the Essentials package, along with:
- Tax-aware diversification discussions
- Overview of exchange funds, qualified opportunity zone investments, and charitable giving options
- Concentrated stock strategies, including hedging techniques and options strategies such as puts and covered calls
Twin Peaks Wealth Advisors: A Local Perspective on a Complex Process
Operating in San Francisco, Twin Peaks Wealth Advisors works with individuals familiar with the city’s vibrant startup culture and fast-paced IPO activity. Their familiarity with the local business climate may be especially relevant to professionals navigating equity compensation and liquidity planning.
While IPO events can present financial complexities, engaging with knowledgeable professionals may offer valuable insight into the decisions and variables at play. Twin Peaks Wealth Advisors provides structured resources and analysis for those seeking to evaluate and plan around these events with clarity and context. Explore IPO planning in San Francisco, CA, more by booking a call with Twin Peaks Wealth Advisors today.
