How do I handle unvested equity grants (RSUs, stock options, warrants)?
Unvested equity grants aren't yet your property, so they shouldn't sit in your current net worth. Model them as future income in the Retirement planner:
- Open Retirement planner - Money in & out tab.
- Click + Add payment - Custom payment.
- Name it (e.g. "RSU Vesting" or "Stock Options Vesting").
- Set Wealth impact to Increase.
- Enter the estimated after-tax value at vesting/exercise and the expected year(s).
For multi-year vesting (cliff or graded), add a separate entry for each tranche. A conservative approach for options is to model only those already in-the-money - options can be worth less or nothing if the stock price falls below the strike price.
Once the grants vest and you hold the shares, add them to Net Worth - "Add a net worth asset" - Private equity - Company equity, and convert to Securities once unrestricted.
