Brian Hook Mar 01, Got lots of clients with complicated stock option plans? Could you use a little assistance with calculating the tax ramifications? StockOpter, an Excel-based program, helps you evaluate employee stock option exercise and sell strategies.
Several reps say using StockOpter enables them to maximize clients' total portfolio value while achieving annual after-tax cash flow objectives.
Many of the major brokerage firms are still evaluating the program and none have made it available to reps yet, according to developer Net Worth Strategies of Bend, Ore.
As a result, the early adopters of StockOpter are primarily independent financial advisers. Walker has been using StockOpter since August. She says it makes her job easier. She particularly likes how comparisons of ordinary income tax consequences and alternative minimum tax consequences are built into the program. Walker also uses the graphing overlay to give her a visual sense of several different scenarios.
More importantly, Walker says the program helps her clients. She says the program feels familiar and saves time. Jennerjohn also says that StockOpter simplifies the planning process for clients. StockOpter is compatible with the entire suite of Microsoft Office products and can be used in conjunction with Microsoft Word documents or PowerPoint presentations. The program handles incentive stock options, nonqualified stock options and restricted stock plans.
It instantly calculates tax consequences of option activity. It also displays updated after-tax cash flow and total portfolio value. Multiple scenarios can be built, analyzed and graphed. The automatic aspects of the program help with productivity, reps say. Users can simulate a number of different exercise and sell strategies, and plot the after-tax cash flow and net-worth consequences of those strategies.
For those with less expertise in the area of options planning, Net Worth Strategies provides a one-day training session. For more information about the product, check out www. WealthManagement Magazine brought to you by. It's not for the. More information about text formats. Text format Comments Plain text. Web page addresses and e-mail addresses turn into links automatically. Lines and paragraphs break automatically.More...