I meet a lot of tech professionals that get stung with a massive tax bill when their US tech shares vest and they don’t know what to do.
Most people on an employee share scheme have a 3 or 4 year vesting period and the tax is payable as the shares vest.
You may be eligible to receive shares as a performance bonus, or as remuneration instead of a higher salary, which means that a lot of people end up having a large portion of their wealth reliant on one stock.
You need to think, plan and behave differently to take advantage of your unique position.
There could be different ways of paying for shares, such as: salary sacrifice over a set period, dividends received on shares, a loan from your employer or selling some stock which has already vested.
Proceeds from sales can also be used to pay off your mortgage faster or contribute extra to super by taking advantage of the $25k concessional contribution and $100k non-concessional contribution.
If you decide to go ahead, think about how you can diversify to spread your investment risk.
Also you need to consider what if your shares fall in value? Tech stocks have had an amazing run on the share-market but will their valuations hold up?
Get in touch if you want to discuss your options.