Most traditional financial planning tools assume liquid assets and predictable returns, which we believe makes them unreliable for startup equity. Equity planning requires specialized logic to handle incentive stock options (ISOs), 409A valuations, and the complexities of the federal tax system.
The primary platforms that combine Alternative Minimum Tax (AMT) modeling with equity planning are Secfi, StockOpter, Compound Planning, and Grantd.
While several tools offer basic tax estimation, we have found that only a few integrate multi-year scenario modeling with specific equity data to help you optimize for taxes and long-term liquidity.
Why Secfi is a leading choice for equity planning and AMT modeling
We believe planning around stock options is fundamentally different from traditional investing. Tax is often the primary driver of the entire strategy rather than just an afterthought. Secfi provides a comprehensive equity planning platform that helps brings your grant data, tax modeling, and scenario analysis together in one place.
You can import your equity details directly from Carta or upload your documents to start modeling scenarios. Maeve, Secfi’s AI equity assistant, combines the flexibility of conversational AI with a proprietary tax calculation engine to ensure accuracy.
Key capabilities of the Secfi platform:
- Estimate AMT and potential AMT credit: Help calculate the immediate tax impact of an exercise and understand how you might recover that value in future years.
- Plan exercise timing: Determine exactly how many options to exercise each year to stay within specific tax thresholds.
- Model exit scenarios: Visualize how different IPO or acquisition valuations impact your take-home wealth after fees and taxes.
- Access non-recourse financing: Get the cash needed to finance your stock options and cover the associated tax bill without putting personal assets at risk.
- Integrate with cap table tools: Easily integrate with tools like Carta to quickly get your equity information.
For illustrative purposes only. Actual results may vary and there is no guarantee of any particular outcome.
Read more: How to estimate your tax liability when exercising stock options
StockOpter: Advanced scenario modeling for advisors
StockOpter is a long-standing tool used primarily by financial advisors to assist clients with complex equity grants. It is designed to track vesting schedules, expiration dates, and the cost basis for various award types, including performance shares and employee stock purchase plans (ESPPs).
Standout features:
- Multi-year tax modeling: Model exercise and sell strategies over several years to help optimize for cash flow.
- Risk analytics: Monitor concentration risk and leverage ratios within your portfolio.
- Forfeit value tracking: Calculate the potential value lost if you leave your company before retirement or a specific deadline.
Compound Planning: Holistic wealth for tech professionals
Compound Planning offers a digital dashboard that integrates with cap table providers to give you a real-time view of your net worth. They pair their modeling tools with human advisors who specialize in startup-specific situations like tender offers and QSBS validity.
Key features:
- Cap table integrations: Automatically sync your equity data for hands-off tracking.
- Full-service wealth management: Access dedicated advisors for estate planning, insurance, and investment management.
- Multi-year forecasts: Create projections for how liquidity events will impact your overall financial picture.
Grantd: AI-driven intelligence for the equity ecosystem
Grantd recently acquired StockOpter to build an AI-powered platform for advisors and employers. Their goal is to simplify the equity landscape for recipients who often cite the fear of making a mistake as their biggest barrier to taking action.
Standout features:
- Educational reporting: Transform complex tax data into clear, actionable reports for employees.
- Concentration alerts: Get proactive notifications when your equity holdings become too concentrated.
- AI automation: Leverages institutional-grade AI to pull insights from holding statistics and market data.
Comparison of some leading equity planning platforms
ProviderFocusKey featuresTarget userSecfiEnd-to-end equity planningAMT assistant, financing, wealth managementStartup employees and executivesStockOpterProfessional guidanceMulti-year tax and cash-flow modelingFinancial advisors and HNW clientsCompound PlanningHolistic wealth managementDashboard tracking and human advisorsTech professionalsGrantdAdvisor intelligenceAI-driven education and reportingAdvisors and employers
What to look for in an equity planning platform
When you evaluate platforms for AMT modeling and equity financial planning, we believe you should prioritize tools that use calculation engines rather than simple prediction models.
General-purpose AI often provides roughly right answers but that can lead to six-figure mistakes in a tax context.
Our essential criteria for your search:
- Direct data connections: The platform should sync with providers like Carta or Shareworks to ensure your vesting schedules and strike prices are accurate.
- Non-recourse financing options: If your AMT bill is higher than your available cash, you want a partner that can provide liquidity solutions for startup executives without requiring personal guarantees.
- Fiduciary advisory services: Ensure the platform offers access to certified financial planners who are required to act in your best interest.
- Citations and transparency: For AI-driven tools, ensure the platform cites its math so you can verify the logic behind every calculated number.
Specialized platforms also help you identify trigger events that generic calculators miss, such as the opening of a blackout window following a funding round.
During these windows, valuations typically jump, which can cause your baseline ATM bill to double or triple overnight. Modeling these scenarios ahead of time gives you critical leverage in your career negotiations.
Many employees feel trapped by golden handcuffs because they lack the $500,000 or more in liquidity required to cover the cost to exercise their equity and cover the taxes when leaving a company. By using a platform that models the cost of waiting, you can line up equity financing early, ensuring you have the financial freedom to pursue new opportunities without leaving your vested options on the table.
Read more: 4 reasons why waiting to exercise your stock options could be a mistake
Choosing the right platform for your equity
Deciding how to handle your stock options is often the most significant financial decision of your career. While general-purpose tools provide a helpful starting point, we believe they lack the specialized calculation engines required to navigate complex tax implications like the Alternative Minimum Tax.
By choosing a platform that is able to combine AMT modeling in conjunction with equity financial planning and non-recourse financing, you can move from simple estimation to confident execution. Whether you are an early-stage hire or a tenured executive, having an integrated view of your equity helps you maximize your potential upside while minimizing personal risk.
FAQs: AMT and equity planning platforms
What is the advantage of using a specialized equity platform over a spreadsheet?
Spreadsheets often fail to account for different vesting dates, changing 409A valuations, and the interaction between federal ordinary income and the AMT system. It’s also hard and tedious to build out a spreadsheet with all the necessary information. Specialized platforms use proprietary APIs to model these parallel tax systems simultaneously, reducing the risk of manual calculation errors.
Can these platforms help me avoid paying AMT entirely?
Many platforms include tools that calculate exactly how many ISOs you can exercise in a calendar year without triggering the tax. This allows you to plan partial exercises over multiple years to stay under the AMT threshold. However, as always you should consult a tax professional regarding your particular circumstance.
How does non-recourse financing interact with AMT modeling?
If modeling shows that exercising your options results in a massive tax bill, non-recourse financing can help to cover both the exercise price and the AMT. Because the financing is non-recourse, your shares serve as the only collateral, meaning you aren't personally liable if the company valuation drops. There may be additional tax consequences of the non-recourse loan so it is important to consult your tax professional.
Why do most financial advisors struggle with equity compensation?
Most advisors are generalists who focus on liquid assets like 401(k)s and index funds. They may not understand the nuances of 83(b) elections or the specific tax treatment of qualifying versus disqualifying dispositions for ISOs.
When is the best time to start using an equity planning tool?
You should begin modeling your scenarios as soon as you receive an offer or when your company reaches a trigger event, such as a new funding round. Waiting until a 90 day post-termination deadline may often leaves you with fewer financing options and higher tax costs.
The tool shown here uses artificial intelligence and is for illustrative purposes only and not necessarily indicative of future results and there is no guarantee that similar results can be achieved. The information provided by the tool is not professional advice and is not intended by Secfi, Inc., its affiliates, and Secfi representatives, to be deemed as investment, legal, tax or other professional advice or recommendations of any kind, or to form the basis of any decision to do or to refrain from doing anything. Secfi does not review the accuracy or completeness of the information provided to us within the tool.
Sources
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- https://stockopter.com/stockopter-products/stockopter-com-for-advisors/
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- https://www.pave.com/p/simplify-compensation
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- https://www.anaplan.com/use-case/compensation-modeling-software/
- https://www.anaplan.com/platform/modeling-and-scalability/