Planning for Career Transitions in the Tech Industry: A Guide for Los Gatos Professionals

Career transitions are common in the fast-moving tech industry. Whether you’re navigating a company acquisition, considering a startup opportunity, or simply weighing a move to a new role, change brings both uncertainty and opportunity. For professionals in Los Gatos and Silicon Valley, the stakes can be high, especially when equity compensation, benefits, and long-term planning are involved. 

Financial planning for those working in tech in Los Gatos often begins before a transition happens. With a strategy in place, you can evaluate key financial considerations, make informed decisions, and better understand potential tax implications. A fiduciary financial advisor in Los Gatos can help guide you through this process with insight tailored to your industry and goals. 

Understanding the Financial Impact of a Career Change 

Changing jobs in the tech sector often affects more than your paycheck. Compensation packages may shift, benefits may reset, and your short- and long-term tax exposure can change significantly. 

For example, a new role may come with stock options instead of restricted stock units (RSUs), or vice versa. Your vesting schedule may restart, and unvested shares from your current employer could be forfeited. Severance packages, bonuses, and unused benefits may also come into play. 

These moving parts require a financial plan that can flex with your changing situation. Without proper guidance, you may miss key deadlines, lose valuable benefits, or trigger unexpected taxes. 

Reviewing and Managing Equity Compensation 

Equity compensation is one of the most complex and valuable elements of tech industry pay. During a career shift, it is critical to understand how your current and future equity packages work. 

Start by reviewing your existing grants. Know what is vested, what is unvested, and what will happen to your shares if you leave. Some companies require action within a tight window to exercise vested options after departure, while others may have extended exercise periods. 

Next, evaluate your new offer. Understand the type of equity involved, such as incentive stock options (ISOs), non-qualified stock options (NSOs), RSUs, or performance shares, and how it fits into your broader financial picture. Each has its own tax implications and planning strategies. 

A fiduciary advisor can help you model exercise scenarios, manage potential tax exposure, and integrate equity into your investment and estate plan. 

Benefits and Retirement Plan Transitions 

Changing jobs means reevaluating your benefits, including retirement plans, insurance, health savings accounts (HSAs), and deferred compensation. Failing to transition these accounts properly can lead to missed opportunities or even penalties. 

During a career move, consider the following: 

• Should you roll over your 401(k) or leave it with your prior employer? 

• Will your new employer offer similar or better benefits? 

• How will you bridge any health care gaps if there’s a break in employment? 

• Do you have unused flexible spending account (FSA) funds that need to be used? 

Review all benefit options at both companies and develop a plan that helps maximize tax efficiency while supporting your short-term cash flow needs. 

Tax Strategy and Timing Considerations 

Career transitions can create significant changes in income, especially if you receive a bonus, severance package, or realize capital gains. Without proactive tax planning, your total tax liability could increase unexpectedly. 

If you are exercising options, selling stock, or receiving a large payout in the same year as a salary shift, you may want to coordinate the timing to avoid bracket creep. You may also be eligible for deductions or deferrals that offset some of the impact. 

Planning ahead can help you better understand available options such as Roth conversions, backdoor Roth contributions, or tax-loss harvesting. 

Career transition planning in Silicon Valley often requires a detailed, personalized tax strategy. A fiduciary advisor can help you model different outcomes and coordinate with your tax professional. 

Long-Term Planning During Uncertain Times 

A job change can be a trigger to reevaluate your long-term goals. Even if the move is a positive one, it is a good time to check in on your broader financial strategy. 

Questions to ask include: 

• Are you still on track for retirement at your target age? 

• How does your new compensation package affect your savings plan? 

• Does your investment allocation reflect your current risk tolerance and timeline? 

• Have you updated your estate planning documents and beneficiaries? 

A career shift is a key life milestone and offers the chance to reset your financial priorities. Use this transition as a time to review your financial priorities and assess whether your current plan continues to align with your long-term vision. 

Avoiding Common Mistakes During a Job Change 

Career transitions often bring more financial complexity than people anticipate. Key details can easily be overlooked, such as unvested stock options expiring without reviewing early exercise provisions or not fully understanding the tax impact of exercising options and selling RSUs. Professionals may also face gaps in insurance coverage, miss opportunities to roll over a 401(k), or fail to update financial goals to reflect a new income or career path. 

A fiduciary financial advisor can help you review these details in a structured and thoughtful way. With a clear checklist, timely guidance, and a strategy aligned with your goals, you can approach your next chapter with greater confidence. 

Financial Planning Support from Savant Wealth Management in Los Gatos 

Career transitions can be a launching pad for growth, but only if approached with clarity and structure. With thoughtful planning, you can better understand potential risks and considerations and develop a framework to support your financial decision-making. 

Savant Wealth Management offers services across financial planning, investment management, tax strategy, and retirement planning. To help gain clarity during your career shift, schedule an introductory call with a fiduciary financial advisor in Los Gatos today. 

This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.