The start of a new year has a quiet advantage that many tech professionals overlook. Before bonuses hit, before vesting schedules accelerate, and before the tax picture gets complicated, you have a short window where planning is easier, and decisions are clearer.
If you earn RSUs, hold stock options, or have equity from a current or former employer, the first 90 days of 2026 are one of the most important planning periods of the entire year. What you review and decide between January and March can shape your taxes, cash flow, and risk exposure long after the year is underway.
At KB Financial Advisors, we see the same pattern every year. Clients who plan early feel in control. Clients who wait often feel rushed once vesting and tax deadlines pile up. This guide walks through the most valuable equity moves to consider early so your decisions support you all year long.
Start by Taking Inventory of Your Equity
The first step is not deciding what to sell or exercise. It is understanding exactly what you own.
Early in the year, pull together a complete list of your equity compensation. This includes RSUs, ISOs, NSOs, ESPPs, and any shares from prior employers that may still be sitting in a brokerage account. Many people underestimate how fragmented their equity becomes over time, especially after job changes.
For each grant, confirm the vesting schedule, strike price (if applicable), expiration date, and whether shares are already vested or still restricted. Platforms like Carta make this easier, but you still need to review the details yourself to avoid surprises later.
This inventory becomes the foundation for every decision that follows.
Build a 2026 Vesting and Expiration Calendar
Once you know what you have, map out when things happen.
Create a simple calendar that shows every vesting event in 2026, along with option expiration dates. RSU vesting increases taxable income even if you do nothing. Option expirations can quietly erase value if they are missed. This is especially common when someone leaves a company and does not realize how short the post-termination exercise window can be.
Seeing these dates laid out helps you prioritize which decisions require action and which can wait. It also prevents equity events from sneaking up on you mid-year when taxes and cash flow are already stretched.
Plan for Taxes Before They Show Up
Taxes are often the most stressful part of equity compensation, mainly because they arrive after decisions are already made.
RSUs are taxed as ordinary income at vesting, but withholding is often lower than the actual tax owed. Stock option exercises can trigger ordinary income, capital gains, or even alternative minimum tax, depending on the type of option and timing. The Internal Revenue Service rules around equity are detailed, and default payroll withholding rarely tells the full story.
Early in the year is the best time to estimate your 2026 tax exposure. If you know heavy vesting is coming, you can plan estimated payments, adjust withholding, or time sales intentionally rather than reacting later. This is where proactive planning often saves more than last-minute tax moves ever could.
Decide How Much Company Stock You Actually Want to Hold
Many tech professionals accumulate company stock simply because it vests automatically. Over time, this can create a level of concentration risk that feels uncomfortable once you finally step back and look at it.
In the first quarter of the year, decide what role company stock should play in your overall portfolio. Some clients choose to sell a portion of shares at every vesting to diversify gradually. Others keep a defined percentage and sell anything above that threshold.
What matters is having a rule. Without one, decisions tend to be emotional or delayed, which increases risk rather than reducing it.
Align Equity Decisions With Cash Flow Needs
Equity is not just an investment asset. It often funds real-life goals.
If you know you will need cash this year for taxes, a home purchase, or a major expense, that should shape how you approach vesting and selling. Waiting too long to plan can force sales at inconvenient times or create unnecessary stress around liquidity.
Mapping equity income against your cash needs early helps you avoid selling in a rush later.
Consider Early Exercise and 83(b) Elections Carefully
For startup employees and founders, early exercise opportunities can be powerful but risky.
If your company allows early exercise, the beginning of the year is a good time to evaluate whether filing an 83(b) election makes sense. When done correctly, it can reduce long-term tax exposure if the company grows. When done without planning, it can lock in taxes on value that never materializes.
This decision should always be made with professional guidance and a clear understanding of the downside.
Integrate Equity Into Your Broader Investment Plan
Equity compensation should not live in isolation. Once vesting, selling, and exercise strategies are outlined, fold them into your broader investment plan. Review how equity income affects your asset allocation, risk tolerance, and long-term goals. A well-coordinated plan keeps your portfolio balanced even when equity income fluctuates year to year.
Set Clear Goals for the Year Ahead
Before the pace of the year accelerates, define what success looks like for 2026. That might mean reducing reliance on employer stock, smoothing taxable income, preparing for a liquidity event, or building long-term financial independence. When goals are clear, equity decisions become much easier to evaluate.
Why Early Planning Makes Everything Easier
The difference between confident equity decisions and stressful ones is timing.
Planning during the first 90 days of the year gives you space to think clearly, model outcomes, and choose deliberately. Once vesting, bonuses, and deadlines stack up, even simple decisions can feel overwhelming.
At KB Financial Advisors, we help tech professionals and founders build equity strategies that support their careers and their lives. If you want clarity around your RSUs, stock options, or long-term equity plan for 2026, book a call with us. We are always here to help.
Good planning early creates flexibility later. That flexibility is what allows equity to work for you, not against you.
