In this video, learn how to enter RSUs in the US version of Voyant.
Transcript
Training Transcript – Entering RSUs in Voyant
In this training, I’m going to walk you through how to enter RSUs into your client’s plan.
In our example, we’re working with Robert, who earns a $250,000 annual salary. As part of his compensation package, he also receives Restricted Stock Units (RSUs), so we’ll want to add those into the plan.
To begin, click the plus button in the bottom-right corner, choose Savings & Investments, and then select Stock Grant.
Give the grant a clear name, this is what will display in the plan and in any reports.
Under Grant Type, select the appropriate type of stock grant.
Next, enter the grant date, the current price of the stock, and the number of unvested shares remaining in this grant. For example, if 1,000 shares are still unvested, we’ll enter that here. Then set the vesting period—in this case, these shares will vest over the next three years.
Moving to the Growth section: this is where you select the growth rate that will apply to this investment.
If your client already has vested shares associated with this stock grant, you can enter those under Vested Shares.
Let’s add a share block and say the client has 200 fully vested shares. These vested last year, and at that time the fair market value was $90 per share. Go ahead and enter that information.
Under Future Vesting, you can estimate the vesting schedule for the remaining unvested shares. Click Estimate Schedule, and the software will build that schedule automatically based on the number of years and shares remaining. If your client has an uneven vesting schedule, you can also enter it manually using Add Year.
Now let’s look at the Future Grant section. This is where you enter any stock grants the client expects to receive in the future, grants not yet awarded but anticipated.
Turn this section on, and you can either select an existing event from the timeline or double-click in the grey area to create a new one.
For example, let’s say Robert expects to receive an additional grant at age 62. We’ll make this a one-time event by keeping the start and end years the same, and enter that he will receive 200 additional shares.
Click Done to save.
To review what we’ve entered, go to Year View. Under Investments, you can open the RSU to see details on the number of vested and unvested shares, along with the totals. Below that, you’ll see the vesting schedule progressing year by year.
Each time shares vest, they’re treated as income and are subject to income tax. To see the tax impact, go to the Taxes section. You’ll see the value of vested shares listed as income and included in the client’s taxable total. Any additional tax is shown under Federal Income Tax and will be paid from available cash or the next source in the liquidation order.
You can also view the Assets chart to see how vested shares accumulate over time as part of the client’s net worth.
Returning to the dashboard, you may also want to schedule liquidation events for these RSUs.
Open the RSU, go to Liquidation, and change it from None to your preferred method: All Available, Fixed Amount – Recurring, or Number of Shares – Recurring.
In this example, we’ll choose Fixed Amount – Recurring. Let’s say Robert wants to withdraw $10,000 per year starting at his retirement event and continuing until mortality. Set the start and end events, enter the annual amount, and click Done.
You’ll now see this income flowing into the plan on the Cash Flow chart. In Year View, after retirement, you’ll see RSUs Liquidation Proceeds. Any capital gains tax due on those liquidations will appear under Investment Income, where you can review taxable gains.
I hope this walkthrough was helpful.
If you have any questions or want help modeling an example for a client, feel free to reach out to us at support@planwithvoyant.com. You can also click the Request Support option under your client’s name in the top-right corner, enter your question, and share the plan you’re working on.
Thank you.