Financial Planning for Tech Employees in Silicon Slopes, Utah
Nestled along the Wasatch Front, Silicon Slopes has become a booming tech hub in Utah, with Lehi at its heart. Major players like Adobe, Qualtrics, and Domo have made their homes here, and a steady stream of startups continues to fuel the area’s growth. For tech professionals based in this region, especially those earning equity compensation or facing complex tax scenarios, proactive financial planning is important.
Whether you’re an engineer, product manager, or executive, here are tips to align your financial strategy with the unique opportunities and challenges of working in Utah’s tech corridor.
1. Understand Your Equity Compensation
Many tech companies in Silicon Slopes offer equity as part of compensation—think stock options (ISOs or NSOs), RSUs (restricted stock units), or ESPPs (employee stock purchase plans). While this compensation can lead to significant wealth creation, it can also introduce complexity.
Tips:
Know the type of equity you have. For instance, ISOs have different tax treatments than RSUs. Exercising ISOs might trigger AMT (alternative minimum tax), while RSUs are taxed as ordinary income upon vesting.
Plan your tax strategy early. Work with a tax advisor or financial planner who understands equity comp. Timing your sales can help reduce your tax bill.
Diversify over time. Concentrated positions in a single company—including your own—can be risky. Consider a plan to diversify as your holdings grow.
2. Navigate Utah’s Tax Environment
Utah has a flat state income tax rate of 4.55%, which applies to wage income and capital gains alike. While lower than states like California, it’s still a factor to consider, especially when realizing gains from stock sales or exercising options.
Tips:
Use tax-advantaged accounts. Contributing to 401(k)s, HSAs, and IRAs can reduce your taxable income.
Time large income events. If you know a big stock vesting or bonus is coming, strategize to spread out income or bunch deductions.
3. Maximize Your Employer Benefits
Tech firms in the region tend to offer generous benefits—for example, 401(k) matching, ESPPs, and even student loan assistance.
Tips:
Always contribute enough to get the 401(k) match. It’s free money.
Review ESPP plans. Some companies offer a discount of up to 15%—a strong return even over a short holding period.
Don’t overlook legal and financial benefits. Some plans may include estate planning tools or financial planning reimbursements.
4. Be Strategic with Real Estate
Many tech employees consider real estate a core part of their wealth-building strategy, but timing and planning are crucial.
Tips:
Be realistic about affordability. Tech salaries can be substantial, but don’t overextend.
Consider future liquidity events. If you’re expecting a stock windfall, you may be able to time a purchase to coincide.
Don’t forget tax benefits. Mortgage interest and property tax deductions (within limits) can ease the tax bite.
5. Prepare for Liquidity Events
If you’re part of a startup heading for an IPO or acquisition, a “liquidity event” could transform your financial picture overnight.
Tips:
Map out multiple scenarios. What happens if your company goes public? Gets acquired? Stays private for 10 more years?
Understand lockup periods and blackouts. You might not be able to sell right away, even when the market is volatile.
Have a plan for cash proceeds. Sudden wealth needs careful handling, from taxes to investments.
6. Think Beyond Today: Retirement, Estate, and Legacy Planning
High-earning tech professionals often achieve their savings goals faster than expected. That can mean planning for retirement, giving, and family legacy sooner than most.
Tips:
Use backdoor Roth IRAs. If you exceed the income limits, this strategy can still give you access to tax-free retirement growth.
Build a tax-efficient withdrawal strategy. Think about how you’ll pull from taxable, tax-deferred, and Roth accounts in retirement.
Set up an estate plan. This can be as simple as a will and healthcare directives, or more complex with trusts, depending on your assets and goals.
7. Work With a Fiduciary Financial Advisor
Financial planning in tech areas such as Silicon Slopes comes with a blend of opportunity and complexity. That’s why it can help to work with a fee-only, fiduciary financial advisor who is legally required to act in your best interest and doesn’t earn commissions from selling products.
A fiduciary can help you:
Integrate tax, investment, and estate planning
Make informed decisions around equity compensation
Prepare for both short- and long-term goals
Final Thoughts
The tech community in Lehi and the greater Silicon Slopes area is thriving, and with it comes the chance to build lasting wealth. Whether you’re new to the industry or a seasoned executive, the right financial strategy can help turn your hard work into long-term freedom.
Parkshore Wealth Management serves clients virtually and from its offices in Lehi and Logan, Utah, and Granite Bay and Folsom, California. While this article doesn’t serve as financial advice, it’s a starting point for thinking more intentionally about your money.
With thoughtful planning and professional guidance, your financial future can be as dynamic and innovative as your career.
Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor today to discuss your personal situation.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Granite Bay and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.