Real Client Story – Cashing In Employer Stock For A Down Payment

Client?s Story

Not too long ago, a client found themselves in a bit of a pickle. They had long awaited the time when they could buy a house. And now that their children were leaving the nest and their employers were allowing them to work virtually, they could finally relocate to Florida and be closer to friends and family. 

They knew they wanted to buy a newly constructed house because they?d get more bang for their buck. The construction would finish in about nine months, which meant they?d contract for the house now, but wouldn?t actually buy it until it was ready for moving in. However, they faced uncertainty in deciding when to sell their employer?s stock for the rest of the down payment. 

Over the course of two months, the client saw their employer?s stock fall over 26%. And since this was a main source of funding for their new home, they felt a bit insecure about next steps. Questions started sprouting up like:

  • Will the stock rebound to the price it was just recently?
  • Should we wait longer to sell, and hold out for further gains?
  • If we sell, where should the money go until we buy the house? 

It?s also worth noting that the client?s stock consisted of restricted stock units, vested stock options, and an employer stock purchase program. This means that they needed to decide which type of shares to sell too. Some of their selling options came just recently after the end of a lock up period.

Crafted Finance?s Solution

Whenever a client calls us the first thing we do is actually listen to them. That?s because it?s vital to understand what the problem really is, and how it?s being perceived. From there, we?re able to take a deeper dive into what actions the client can take. 

In this case, we had to clarify both the problem and its perception. Questions regarding ?market timing,? can be dangerous. The truth is we cannot time the market without getting lucky. That is, we cannot know for certain how future markets will look. 

While we can analyze present data, and review long-term trends, forecasts will still only be educated guesses in the end. And in the advisor?s chair, our job is to help clients measure uncertainty, and make decisions that align with their priorities. Nevertheless, it?s easy for emotions to take over and create dissonance when the future is uncertain. That?s why we help clients get crystal clear on their values, ensure they?re rooted in truth, and then take action.

After our conversation, it was clear that a new home was a top value for the client. They felt it was essential to realizing what they truly wanted for their next chapter. The other perspective we uncovered was that even though they were selling some stock to sit in a stable cash equivalent for the time being – the actual exchange being made here is a transition from a small company stock to a parcel of real estate (we like to call it an ?asset-shift?). 

This perspective helped the client realize that perhaps this isn?t some grand opportunity lost – rather it was and exchange of assets – each with great long-term value. After understanding this, they felt the desire to move forward. This home was intended to be a very long-term investment, and they felt secure in their income, career, and finances to weather a future storm. So we strategized to sell some of their stock for the down payment, and give the rest time to rebound. 

Getting You Help 

It can be tempting to try and ?time the market,? especially when you?re facing a major decision like buying a home. If you need help figuring out your priorities, whether or not you should sell stock, or developing a financial roadmap to get you where you want, reach out to us. 

You can reach us directly at (650) 336-0598 with any questions, or fill out a contact card here, and we?ll reach out to you.

Investment Advisory Services are offered through Crafted Finance, LLC, a registered investment adviser. Please remember that securities cannot be purchased, sold or traded via e-mail or voice message system. This advertisement and any documents, files or previous advertisements may contain information that is confidential or legally privileged.  If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited.  If you have received this advertisement in error, please immediately notify the sender by telephone at (650) 336-0598 or return and delete the original advertisements and its attachments without reading or saving in any manner.

Share This Blog Post:

Kristin Harad

Marketing Coach

Step right up and meet Kristin Harad, the Marketing Coach wizard! Guiding businesses through the intricate maze of marketing, Kristin combines her smarts, pizzazz, and a hefty portfolio of wins to show she’s the real deal. Ever wonder what makes a brand pop and a strategy rock? Kristin’s your answer, lighting up the marketing world and turning potential into prowess.

Boasting three decades in the marketing arena, Kristin’s more than just a seasoned pro – she’s a beacon. Whether she’s spotting the next big trend or identifying a golden opportunity, she’s always got her finger on the pulse. And the cherry on top? Her rock-solid commitment to catapulting her clients right to the top of the business game. Dive into the marketing world with Kristin, and watch magic happen!

Jon Fogg

Content Creator

Jon Fogg is a dynamic and innovative content creator who has been making waves in the digital realm. With a passion for creativity and a flair for storytelling, Jon has captivated the financial world through his engaging and diverse content.

When he’s is not working on an SEO blog or case study, you’ll find him enjoying local art galleries or a phenomenal read. Friends and colleagues often commend him for his clear enthusiasm and dedication, which is evident in every project he undertakes. 

Kingston Hollman MBA

Compliance

Meet Kingston Hollman, the compliance guru everyone’s been talking about. With a sharp mind for regulatory ins and outs, Kingston is all about keeping businesses on the straight and narrow. That’s why he’s a go-to in the compliance world!

Sporting an MBA under his belt, Kingston’s not just about book smarts. He knows the fine dance between business strategy and staying in line with the rules. And guess what? He’s mastered it. Ensuring companies sail smoothly through the often-stormy waters of compliance is his game.

From the get-go, Kingston’s been crafting top-tier compliance programs, tailored just right for all sorts of industries. It’s his eye for detail and that knack for spotting the little things that make him stand out. He doesn’t just set up a system; he fosters a whole vibe of staying compliant, making sure everyone’s on board.

Jessica Martineau

Client Operations Manager

Jessica is a seasoned professional with a diverse background, bringing a decade of expertise across multiple industries. A proud graduate of SPU, her journey in the professional world is marked by significant accomplishments.

With nearly eight years dedicated to managing projects in the graphics and built environment sectors, Jessica has honed her skills as a meticulous Project Manager. This tenure has instilled in her a knack for thriving within organized structures while fostering robust client relationships, a hallmark of her professional ethos.

Her experience in the Finance industry spans almost a decade, where she has held pivotal roles as Lead Client Operations Manager and Director of Operations. Notably, her FINRA SIE Certification stands as a testament to her commitment to excellence.

Jessica’s strengths lie in cultivating enduring client connections, fueled by her passion for delivering thorough solutions. She finds joy in understanding and engaging with her colleagues, nurturing a cohesive work culture.

As a Pacific Northwest native, Jessica enjoys hiking, camping, and skiing. She loves reading, attending live music, plays, and comedy shows. Always a foodie, she delights in discovering new restaurants and revisiting old favorites, especially if there is a water view.

Most importantly, Jessica’s world revolves around her family—her amazing husband, Lee, and their two great kids. They are her inspiration and the anchor to her life outside of work.

Dionne Kelly

Executive Assistant

Let’s dive into the world of Dionne Kelly! Born in St. Kitts and with her roots deep in Barbados, Dionne’s been globe-trotting from her island homes to Canada, the USA, and Belize. Got a love for tropical spots? So does Dionne. Her passport’s got stamps that tell tales of sun, sea, and a bunch of awesome adventures.

Now, when it comes to her profession, Dionne’s the real deal. Over 20 years in the game as an Executive Assistant, she’s been the secret ingredient for bigwig C-suite execs. Think of a challenge, and Dionne’s likely tackled it head-on with her unbeatable organizational skills and eagle eye for detail. 

Oh, and did we mention she’s a foodie? Dionne’s taste buds have danced across diverse culinary landscapes, adding a sprinkle of global flavor to her persona. In the world of executive support, she’s a powerhouse, always two steps ahead and ready to make things happen. 

Joe Wride CFP®

Founder & CEO

Meet Joe Wride, the president and founder of Crafted Finance. With a knack for pension and investment management, insurance, and financial planning, Joe’s all about offering top-notch services without breaking the bank. That’s why he started Crafted Finance!

A proud Finance major from Washington State University, Joe’s got the credentials to back it up as a Chartered Life Underwriter and CERTIFIED FINANCIAL PLANNER™ Professional. Since 2009, he’s been helping individuals, families, and pension plans make sense of their finances. Joe’s even on the board of the Financial Planning Association’s Puget Sound chapter. Check out his LinkedIn profile here.

Joe gets that everyone’s got their own money story. That’s why he’s crafted a unique process to help folks of all stripes manage their finances, whether they’re flying solo, raising a family, or running a company. He’s all about learning and growing to make sure his guidance is just the right fit for his clients.

When he’s not crunching numbers, you’ll find Joe enjoying the Seattle life. He’s into skateboarding at Alki beach, biking, golfing, snowboarding, hiking, and camping. Sports fan? You bet! Joe’s a die-hard supporter of the Cougars, Mariners, Seahawks, and Sonics. But what really matters to him is family time with his wife Jessica, daughter Ocean, and dog Kanga. Joe’s excited to welcome more kiddos into their home through foster care and adoption in the future.

Download for Free

Property Is Power.

Let us know which email address to send this Free eBook to down below:

Please enable JavaScript in your browser to complete this form.
Name
This best describes my experiance in real estate investing:

Get Your Financial Fix!

Subscribe So You Don’t Miss Our Latest Planning Tips.

Search Site