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Modeling Stock Options and Restricted Stock Units (RSUs) in Voyant

Voyant does not currently have a dedicated mechanism to directly model stock options or restricted stock units (RSUs)as non-cash remuneration. Unlike employer pension contributions, equity-based compensation cannot be “parachuted” directly into a plan.

As a result, a workaround is required. This article explains how to model stock options in Voyant using Other Income, Investments, Transfers, and Withdrawal Limits.

Overview of the Workaround Approach

To model stock options or RSUs:

1. Model stock options as Other Income
2. Apply appropriate tax treatment
3. Transfer the income into unvested investment accounts
4. Use withdrawal limits to prevent spending before vesting
5. Use transfers to model vesting at future dates

This method allows you to accurately reflect:

• Timing of receipt
• Growth before vesting
• Vesting schedules
• Availability of shares after vesting

Example Scenario

In this example:

• The client receives €50,000 of stock options in Year 1
• The value increases by 10% per year for three years
• Shares vest five years after receipt
• Each year’s grant vests separately

Step 1: Add Timeline Events

Before entering data:

1. Go to the Timeline
2. Add events for:
   • When stock options are received
   • When each grant vests

These events will later be used to control timing for income and transfers.

Step 2: Add Stock Options as Other Income

1. Go to Dashboard → Income → Other Income
2. Name the income (for example, Stock Options)
3. Enter the starting amount (€50,000)
4. Set the appropriate taxation:
   • Income taxable, or
   • Non-taxable if modeling net amounts
5. Set the growth rate (10% annually in this example)
6. Set timing:
   • Start: Plan Start
   • End: Stock options end event
7. Click Done

You should now see:

• €50,000 in Year 1
• €55,000 in Year 2
• €60,500 in Year 3

If amounts vary significantly year to year, you may alternatively model them as individual windfalls instead of recurring Other Income.

Step 3: Create Unvested Investment Accounts

Each stock option grant should have its own unvested investment account.

For each grant:

1. Go to Investments
2. Add a Portfolio Investment
3. Name it clearly (for example, Unvested Shares – Vest 2030)
4. Leave the balance at zero
5. Set Withdrawal Limit to Scheduled Only
6. Set growth rates and fees as appropriate
7. Click Done

Repeat for each year’s stock option grant.

This ensures the software cannot spend the shares before vesting.

Step 4: Transfer Stock Option Income into Unvested Shares

Now sweep the stock option income into the appropriate unvested accounts.

Year 1 Transfer

• Destination: Unvested Shares – Vest 2030
• Source: All Surplus
• Amount: €50,000
• Transfer before paying expenses: Yes
• Timing: Plan Start

Year 2 Transfer

• Destination: Unvested Shares – Vest 2031
• Amount: €55,000
• Timing: Year 2 event

Year 3 Transfer

• Destination: Unvested Shares – Vest 2032
• Amount: €60,500
• Timing: Year 3 event

Using Transfer Before Paying Expenses ensures the income is invested before it can be spent.

Step 5: Validate Using Year View

Go to Year View to confirm:

• Stock option income appears in cash flow
• Matching transfers sweep funds into the correct unvested accounts
• Each grant aligns with the correct year

Step 6: Model Vesting of Shares

When shares vest, you have two options:

Option 1: Shares Are Sold at Vesting

• Transfer from Unvested Shares → Cash or Savings Account

Option 2: Shares Remain Invested

1. Create a new investment called Vested Shares
2. Leave withdrawal limits as As Needed
3. Set growth rates appropriately
4. Transfer All Available from each unvested account into the vested account at vesting

Repeat transfers for each vesting year.

Step 7: Confirm Vesting Transfers

Use Year View to verify:

• Unvested balances transfer correctly
• Growth is included
• Funds become accessible only after vesting

Key Takeaways

• Stock options must be modeled indirectly in Voyant
• Other Income + Transfers + Withdrawal Limits provide accurate control
• Separate accounts per grant simplify vesting schedules
• This approach supports realistic planning discussions around equity compensation

Need Help?

If you need assistance:

1. Click the client name in the top-right corner
2. Select Request Support
3. Enter your question and share client access

You can also contact Voyant Support directly.