Stock-based compensation can be a valuable asset for executives and professionals seeking to build wealth. However, it can be complex to manage, especially when markets are chaotic. You know better than anyone: when your compensation is tied to your employer’s stock, the value of your portfolio can change very quickly. That’s when planning comes in, and it includes more than just your paycheck. It also covers how and when you turn that equity into actual wealth.

You’ve worked hard to grow your wealth, but have you ever paused to ask yourself what it’s all for? Many executives focus on building their financial portfolios without stopping to define the purpose behind it.

Have you been considering a mega backdoor Roth? It might not be the right fit for you. Here are a few reasons why it rarely works in the real world.

One of the many joys of working with clients who are founders and executives is helping them navigate their wealth plans alongside building their careers, families, and legacies. It’s rare to see ambition stall in these clients; instead, their careers evolve and so do their plans for the future. Helping them design personalized wealth plans tailored to their unique priorities and goals is one of the most thrilling aspects of my career as a wealth advisor.

Peak performers like founders and executives typically define success based on performance and financial metrics: getting that next promotion, reaching a certain level of compensation, or achieving a target business valuation. But even after attaining these career and financial milestones, it’s not uncommon to still feel that something is missing.

Compensation packages for executives and other high-income earners can be confusing; acronyms, percentages, and industry jargon can make it hard to identify exactly what you have to gain from an offer. If you don’t completely grasp the pros and cons of what you’re being offered, it can be difficult or even impossible to formulate a long-term wealth plan. Two common terms you might have heard include restricted stock units (RSUs) and performance stock units (PSUs).