Why can't you manage my account that holds employer stock?

We cannot advise on the trading of employer issued stock given the unique tax implications of selling them. These are specific not only to the company, but sometimes to the employee as well.

Employer-issued stock is sometimes restricted from sale due to vesting periods, and the valuation of private companies is often specific to the company and not listed on exchanges that FutureAdvisor can track. The original “purchase” price of a security may also be different for each employee based on historical valuations of the company and when the employee started, which can create material tax consequences when sold. Employees should check with their employer to understand the unique requirements of their stock, and potentially a tax advisor to discuss the implications of a sale.

For public company stock purchased through a purchase plan, the complexity of tax calculations is reduced, but employees may be restricted from selling stock at certain times (called “blackout periods”). FutureAdvisor is not responsible for tracking these timeframes and therefore cannot manage accounts with purchased stock.

If you have an employer stock purchase program it is recommended that those purchases take place in an account that FutureAdvisor doesn’t manage so that you can handle the liquidations yourself. If you’d like us to manage the assets after liquidation, we can help you set up a mechanism to transfer the cash to one of your managed accounts.