What help do I need? Accountant? Financial Advisor?

[suzyp]

This may be a stupid question.

I work for a company that went public in the last year and I now have stock options that have value.  At the same time, thanks to Covid and the inability to travel, I should have my student loans paid off at the end of the year.

For the first time in my life, I will have what appears to be extra money (i.e. not going to my 401K, student loans, etc.) and I think I need to talk to a professional.  My main questions deal with the stock (as that is the real pile of "extra money').  I want to talk to someone about what to do with the options, i.e. do I sit on them, do I excercise them and re-invest and if so, where.  I am a higher income earner, so there will likely be significant tax implications with my choices. I have both options that I can excercise now and RSUs that will vest next year.

Do I need an accountant? Financial Planner? Neither? Both? I have zero desire to talk to someone who is going to try to do the hard sell for other things (like life insurance, etc.). I really just need someone who can provide guidence on selling stock and/or investing and the best way to minimize tax implications (DH and I are DINKs so we have no real deductions).  Actually having a surplus of money is uncomfortable because it is new for me and I am afraid of making a mistake on my own.

[tripleshot]

I would probably look for a fee-only financial planner that’s also a fiduciary and will advise in your best interests.

www.napfa.org/find-an-advisor

[Pom]

Do you have an accountant? In your situation I would talk to both a fee-only FP and an accountant and move forward with perspectives of both.

[suzyp]

Aug 31, 2020 11:07:29 GMT -5 Pom said:

Do you have an accountant? In your situation I would talk to both a fee-only FP and an accountant and move forward with perspectives of both.

No accountant.  I don't have anything but income, mortagage interest for one year before the stupid Trump tax bills and my 401K so there never seemed to be a reason to do so.

Thanks for answering my kind of dumb question.

[k3am]

suzyp , you are.. ahead of the curve just by asking the question. When we asked our advisor about it when DH was switching jobs and had to do a mandatory redemption, the FA told us that for folks with big stock upside for the first time ever, most of them never consider the tax implications. My BFF exercised her stock and spent the proceeds without a second thought.. whoops.

[ellipses84]

It’s not a silly question. I agree with PPs that you want to talk to an accountant and a financial planner. The FP can help you evaluate where you are at and plan big goals. A good accountant may provide recommendations of what you can do year to year to reduce your tax burden, like donate, put money in an IRA, etc. instead of just ending up paying it all to taxes.