Have you ever tried playing a sport or game without knowing the rules? Regardless of if you have the skill and talent to excel, not knowing the intricacies of the game can be your downfall.

For busy executives, long-term incentives (LTIs) can often become those confusing rules – not to mention a source of stress. However, overlooking or delaying decisions regarding LTIs can have significant consequences for your financial well-being and future goals.

Long-term incentives are designed to align the interests of executives with those of the company and its shareholders. They typically come in various forms such as stock options, restricted stock units (RSUs), performance shares, and other equity-based awards. While these incentives can be lucrative, their complexity lies in their intricacies and the potential impact on your overall financial strategy.

One of the primary reasons LTIs can be perplexing is the multitude of factors that influence their value and taxation. Understanding vesting schedules, exercise prices, market conditions, and tax implications requires careful consideration and expertise.

This is where a financial advisor steps in as a trusted partner in navigating the complexities of LTIs. Contrary to popular belief, financial advisors are not solely focused on investment management or retirement planning. They possess the knowledge and experience to analyze your LTI offerings comprehensively and provide tailored strategies to optimize their benefits.

A skilled financial advisor can assist you in:

  • Understanding LTI Structures – Breaking down the various components of your LTI package and explaining their implications in simple terms.
  • Strategic Decision-Making – Developing a strategic approach to maximize the value of your LTIs while aligning with your financial goals and risk tolerance.
  • Tax Planning – Managing tax liabilities associated with LTIs through strategic planning and utilizing tax-efficient strategies.
  • Financial Planning – Integrating LTIs into your overall financial plan to ensure they complement other aspects of your financial life, such as retirement savings and estate planning.

Don’t let the complexity of LTIs overwhelm you. Take control of your financial future with the assistance of a knowledgeable financial advisor who understands your unique needs and objectives. Reach out today to Diener Money Management to ensure you’re making the most of your long-term incentives and paving the way for financial well-being.


Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
Securities and advisory services offered through LPL Financial, A Registered Investment Advisor. Member FINRA/SIPC.