Answering Commonly-Asked Questions

As a resource, we’ve put together answers to some of the most common questions we’re asked. If you don’t see the answer you’re looking for, don’t hesitate to reach out.

Most financial planners and tax professionals work in silos. While they may be in contact with each other, they don’t integrate their efforts. WRP and our partner, WRP Tax, work together under the same roof to provide holistic financial planning and tax advice for our clients. With specialized knowledge in the IPO process and managing stock options, WRP helps our clients make the most of their opportunities by combining sound financial planning and investment advice with smart tax planning.

There are many early decisions to make about stock options, and you may want to exercise before your company reaches IPO. As soon as you receive options, you should start thinking about whether and when to exercise them and how you would fund the purchase. You may need to secure loans for this purpose. If you’re able to exercise your options before they vest, you’ll need to consider whether to make an 83(b) election, which makes shares taxable immediately upon granting rather than at the time of vesting. It’s also important to plan for applicable holding and lock-up periods and consider creating a 10b5-1 plan to structure future trades.

Banks and brokers make their money from the products they sell their clients. Consequently, they are incentivized to offer the solutions that bring them the largest commissions. WRP’s agents do not earn commissions. When they offer a solution, it’s because they truly believe it’s in the client’s best interest. While some advisors will try to upsell clients, WRP simply offers honest advice.

WRP works on a fee-only basis and adheres to the highest fiduciary standards. This ensures that our agents’ advice is driven only by their expertise and the client’s best interest.

Tax alpha is the value that’s added to your portfolio by implementing optimal tax-saving strategies. This can include selecting tax-efficient investments as well as avoidance tactics such as tax loss harvesting, a timely 83(b) election, and accelerated gifting.

Yes! WRP can work with you to align your investment strategy with your values and ideals. We can customize a portfolio that supports your environmental, social, and governance (ESG) investing goals, helping you to make a positive impact on the world while growing your wealth.

WRP works closely with each new client to understand their needs and goals. We don’t believe in the one-size-fits-all process that most of the big firms use, sorting clients into predetermined portfolios based on their answers to screening questions. We see each client as an individual and craft a plan to fit their unique vision. From there, we use academically proven strategies to bring the plan to fruition, monitor progress, and make adjustments when needed to stay on track to meet the client’s goals.

The alternative minimum tax (AMT) is a hidden calculation designed to prevent high-income taxpayers from paying too little in federal income tax. It works by adding back in certain tax preference items, such as paper gains from the purchase of stock options and certain qualifying exclusions for small business stock. If the taxpayer’s AMT liability exceeds their regular tax liability, then they will owe that higher amount in federal taxes.

Avoiding the AMT requires careful planning. It’s important to make income projections for every year in order to develop a smart purchasing strategy, timing the exercise of stock options for minimal impact on your alternative taxable income. WRP can develop a plan to decrease the AMT when possible, making any necessary adjustments throughout the year as your tax picture comes into sharper focus.

ESG investing involves considering environmental, social, and governance factors (e.g., carbon emissions, labor standards, political contributions) when selecting investments. While there are a variety of funds that pool these types of investments, WRP can also assist you in customizing a portfolio of individual stocks in which to invest. Tell us about your values and your financial goals, and we’ll design a plan to help you support them both.

ESG investments can be an effective part of any well balanced investment portfolio. ESG factors provide one lens with which to view potential investments, but it doesn’t replace the others. Investments should be chosen not only because they meet your ESG standards but also because they can help you reach your personal financial goals. Because WRP takes an individualized approach to investment advice, we can help you incorporate a range of ESG investments into a balanced portfolio that’s designed to get you where you want to be.

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Phone: (408) 549-8533

10 Almaden Blvd., 15th Floor, San Jose, CA 95113

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