Frequently Asked Questions
Does Parkmount Financial specialize in working with corporate executives only at specific companies?​
Answer: No. Parkmount Financial Partners is built to serve corporate executives and senior professionals in technology, healthcare, pharmaceuticals, and similar industries. We can work with people in a variety of different industries with complex benefits and equity compensation plans. We do have specific knowledge and expereince supporting individuals at firms like General Dynamics, Raytheon Technologies, Sanofi, CVS Health, Dell Technologies, Takeda, Pfizer, Microsoft, Biogen, Novartis, Iron Mountain, Johnson & Johnson, Rockland Trust, and Wellington Management. We have helped many employees retire over the years as their advisor. Our team has deep experience helping executives navigate stock options, restricted stock units (RSUs), deferred compensation plans, pensions, and comprehensive benefits packages unique to these large employers. We tailor our financial planning to your company’s specific programs and corporate culture so you can maximize your compensation and confidently plan for retirement.
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What does it mean that Parkmount is a fee-only, fiduciary financial advisor?
Answer: Being fee-only means we are compensated only by our clients – we do not earn commissions or kickbacks for selling financial products. This structure removes conflicts of interest, so our advice remains objective. As a fiduciary advisor, Parkmount is legally and ethically obligated to act in your best interest at all times. In contrast to advisors who might be held to a lower standard, we always put your goals first and provide aim to provide unbiased advice. In short, fee-only fiduciary means you can trust that our guidance is more aligned to benefit you, with transparency about fees and a commitment to loyalty, prudence, and care in managing your wealth.
How can a financial advisor help me with stock options and equity compensation (ISOs, NSOs, RSUs)?
Answer: Equity compensation is often a cornerstone of an executive’s wealth, and Parkmount specializes in making the most of it. We help you understand the different types of stock awards you may have – Incentive Stock Options (ISOs), Non-Qualified Stock Options (NSOs), and Restricted Stock Units (RSUs) – and craft a strategy for each. These forms of compensation have varying rules and tax treatments: for example, ISOs are taxed differently than RSUs, and RSUs differently than NSO. We provide guidance on when to exercise stock options, when to sell shares, and how to minimize taxes on your gains. Our advisors also integrate your company stock into your overall portfolio, ensuring you don’t become over-concentrated in one stock. By coordinating equity grants with your financial goals, we convert your company stock and options into long-term wealth – all while managing risk and taxes. We bring experience from handling hundreds of equity packages, so you don’t miss small details that could cost you.
How can I avoid tax surprises from my stock options and RSUs?
Answer: The key to avoiding tax surprises is proactive planning. Different equity awards trigger taxes at different times. For instance, exercising stock options or vesting RSUs can create ordinary income that may bump you into a higher tax bracket, or even trigger the Alternative Minimum Tax (AMT) if not managed carefully. Parkmount helps you map out the tax impact before you exercise or sell. We often time option exercises or stock sales for years when your income is lower (for example, after retirement or a year with a smaller bonus) to reduce the tax hit. We also consider strategies like exercising ISOs early (to start the clock on long-term capital gains) or utilizing same-day sales for NSOs to cover withholding. Our tax-efficient equity compensation planning ensures you set aside enough cash for tax withholdings and avoid unpleasant surprises at tax time. In short, we make sure you understand what and when to exercise or sell so you don’t face an unexpected AMT bill or avoidable capital gains taxes down the road.
I have a large amount of company stock – should I sell some of it or hold onto it?
Answer: It’s risky to have too many “eggs in one basket.” Highly concentrated stock positions can pose greater risk than reward if your company hits a rough patch. (Remember the employees at Enron, Polaroid, GM, or Lehman Brothers who held on to too much company stock?). Parkmount will help you objectively evaluate your company stock and determine a prudent diversification plan. We often find executives grow emotionally attached to their employer’s stock, but emotional investing can do more harm than good. We’ll set predefined rules – for example, trimming your position when it exceeds a certain percentage of your portfolio – to systematically reduce risk. By selling shares gradually over time and reinvesting the proceeds into a diversified portfolio, you can reduce volatility in your net worth while still participating in your company’s success. Our goal is to protect your wealth from a single-stock downturn, so you can achieve long-term financial security with a balanced portfolio.
What is a mega backdoor Roth 401(k) strategy, and is it something I should consider as a high-income earner?
Answer: A mega backdoor Roth is an advanced 401(k) strategy that allows high-income earners to put a lot more money into tax-free Roth savings if their employer’s plan permits it. In simple terms, it involves making after-tax contributions to your 401(k) beyond the normal limits, then converting those extra contributions into a Roth account (within the 401k or via an IRA rollover). This can potentially let you stash an extra tens of thousands of dollars per year into a Roth, even if you earn too much for a regular Roth IRA nerdwallet.com. nerdwallet.com. For example, if you’re a high-earner who can’t contribute to a Roth IRA directly, a mega backdoor Roth – if your 401(k) allows after-tax contributions – might be a solution nerdwallet.com. However, the caveat is that this strategy is complex, with many moving parts and potential tax pitfalls, so it’s critical to do it right nerdwallet.com. Parkmount will review your 401(k) plan provisions to see if a mega backdoor Roth is available and appropriate. If it is, we’ll guide you through the contributions and in-plan Roth conversions (or rollovers) in a way that avoids unintended tax bills. This strategy isn’t for everyone, but for certain clients it can significantly boost tax-free retirement wealth – and we ensure its executed correctly if we pursue it as the rule on this could change in the future.
Should I participate in my company’s Employee Stock Purchase Plan (ESPP)?
Answer: If your employer offers an ESPP, it can be a fantastic opportunity to build wealth – but you need a strategy. An Employee Stock Purchase Plan (ESPP) lets you buy your company’s stock, often at a discount up to 15% off the market price plancorp.com. That means you’re essentially getting an immediate gain on your money – for example, buying at $85 when the stock is worth $100. While everyone and every plan has unique nuances, Parkmount generally encourages clients to participate in the ESPP, at least up to the maximum that fits your cash flow, because it’s a rare chance to buy assets at a built-in profit. The main question then becomes what to do with the shares. We often recommend selling ESPP shares soon after purchase to lock in the 15% discount gain and avoid over-concentration in your employer’s stock. (This does mean paying taxes on the profit as compensation or short-term gains, but you secure the value and reduce risk.) In some cases, if you’re comfortable with the risk, we might hold the shares for over a year to qualify for lower long-term capital gains tax – but only if it aligns with your diversification plan and risk tolerance. In summary, ESPPs are usually worth it, and we’ll help you decide how much to contribute and whether to hold or sell the shares to best meet your financial goals.
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How can I use a Health Savings Account (HSA) for tax-efficient healthcare planning?
Answer: A Health Savings Account (HSA) is a powerful tool for high earners to save for future healthcare costs and get great tax benefits. HSAs offer a triple tax advantage. (1) contributions are tax-deductible (or pre-tax through payroll), (2) the money grows tax-free, and (3) withdrawals are tax-free when used for qualified medical expenses. This means an HSA can ultimately help pay for your retirement healthcare with completely tax-free dollars. For example, you can contribute each year up to the IRS limit (in 2025, $4,150 for individuals or $8,300 for family coverage, plus $1,000 extra if age 55+) and invest those funds for long-term growth. If you’re already maxing out your 401(k), an HSA can act as an additional retirement savings vehicle – you can invest the funds and let them grow for decades to cover health costs in retirement. Parkmount will help you determine if you’re eligible (you need a high-deductible health plan to contribute) and how an HSA fits into your overall plan. We’ll also guide you on using HSA funds strategically – for instance, you might pay current medical expenses out-of-pocket and let HSA money compound for the future (since unlike an FSA, your HSA balance rolls over indefinitely). Bottom line: we leverage HSAs to supplement your retirement planning and ensure you can handle healthcare expenses with maximum tax efficiency.
What is a non-qualified deferred compensation plan, and should I use my company’s deferred comp program?
Answer: A non-qualified deferred compensation (NQDC) plan is a benefit typically offered to higher-earning executives that allows you to defer a portion of your income to a future date (e.g. retirement). By deferring income, you postpone the tax bill on that money until it’s paid out to you later, ideally when you might be in a lower tax bracket. For executives who are already maxing out their 401(k) contributions, a deferred comp plan can be an attractive way to save more on a pre-tax basis. In fact, for executives who have maxed out their 401(k), NQDC plans offer an opportunity to defer additional income while managing tax exposure. Parkmount helps you evaluate if participating makes sense. We’ll look at your cash flow needs (since deferred comp means you give up current income), the stability and credit risk of your company (deferred comp is an unsecured promise from the employer), and how the deferral payouts align with your retirement timing. When used well, deferred comp can smooth out a big bonus or paycheck over many years – reducing spiky income that would be heavily taxed today, and instead providing you income in retirement when your tax rate may be lower. We also coordinate your NQDC distributions with your other retirement income sources to minimize taxes (for example, planning the NQDC payouts so they don’t all overlap with Social Security or RMDs in the same year). In short, deferred comp plans are a valuable tax-deferral tool for high earners, and we’ll help design a strategy so you can capitalize on it without jeopardizing your future cash needs.
How does Parkmount manage investments in a tax-efficient way for high-income clients?
Answer: Tax-efficient investing is a core part of our wealth management process, especially for high-income executives in top tax brackets. We use an asset location strategy – meaning we place investments in the optimal accounts to minimize taxes. For example, we prefer to hold tax-inefficient assets (like taxable bonds or REIT funds that throw off ordinary income) inside your 401(k) or IRA, while stocks or equity funds (which get lower dividend and capital gains rates) can be held in taxable accountsinvestopedia.cominvestopedia.com. This approach helps you maximize after-tax returns by taking advantage of the different tax treatment of each asset typeinvestopedia.com. In practice, that might mean your aggressive growth stock funds live in your brokerage account (to utilize capital gains rates and potentially tax-loss harvest), whereas your high-yield bond fund lives in your IRA (tax-deferred growth). We also pay attention to tax-efficient funds (favoring index funds or ETFs with low turnover to minimize taxable distributions) and use tax-loss harvesting in taxable accounts to offset gains when markets fluctuate. Moreover, we carefully plan trades and rebalancing to avoid short-term capital gains. All of these tactics ensure that our high-income clients keep more of their investment growth. Research shows that thoughtful asset location can boost after-tax returns for those in high tax bracketsblackrock.com, so we make it a priority in managing your portfolio. By combining prudent investment selection with smart tax strategy, Parkmount helps your investments grow tax-efficiently over time.
Does Parkmount offer educational resources or ongoing guidance on these topics?
Answer: Absolutely. We believe informed clients make better financial decisions, so we provide plenty of education. Our advisor, Joe Boughan, regularly publishes insightful articles on our Parkmount Financial blog covering topics like equity compensation, retirement strategies, and financial planning tips. We also have an educational YouTube channel where we post in-depth videos and webinars – for example, guides on navigating stock options, tutorials on 401(k) vs. Roth contributions, and discussions on tax planning for high earners. These resources are tailored for busy professionals like you, giving practical advice in an easy-to-understand format. We encourage you to explore our YouTube content and blog posts to deepen your knowledge. And of course, as a client, you’ll receive ongoing one-on-one guidance. In our regular meetings, we’ll walk you through financial concepts and updates relevant to your plan. If you have questions between meetings, we’re just a phone call or email away. Parkmount is not just here to manage your money – we’re here to empower you with understanding. So please take advantage of our educational resources, and let us know what topics you’d like to learn more about!