Note: Wealthfront is no longer accepting new Selling Plan clients. However, we will keep these articles online for clients with existing plans.
Selling Plan helps you estimate, minimize, and set aside cash for taxes.
Selling Plan will first sell the shares that have the lowest tax load for you by looking at the cost per share and holding period (long term/short term) of all your shares.
Selling Plan also attempts to prevent any disqualifying disposition on the sale of your stock from the exercise of ISO options. We do this by looking for shares with low cost basis that are within a year of purchase and avoid selling those shares.
Lastly, Selling Plan will help you estimate your upcoming tax bill on the sale of your concentrated stock, and can set aside cash for you to pay it.
Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.
Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.