Financial Planning
for Software Engineers
A no-fluff guide to managing RSUs, optimizing taxes, and building long-term wealth — written for developers who ship code and want their net worth compounding just as fast.
RSU Management
Restricted Stock Units are the default currency of Big Tech compensation. The mistake most engineers make is treating RSUs as a bonus rather than salary. Set a systematic sell schedule — quarterly or monthly — and diversify immediately. Holding concentrated employer stock is not conviction; it is uncompensated risk.
Tax Strategy for High Earners
If you are in the 32%+ bracket, every dollar you do not shelter costs you thirty-two cents. Max out your 401(k), backdoor Roth IRA, and HSA. Consider megabackdoor Roth if your plan allows it. For ISOs, plan your exercise-and-hold strategy around AMT — model it before you act.
Equity Compensation Planning
ISOs, NSOs, and ESPP each have different tax treatments and optimal exercise windows. The rule is simple: never exercise without a liquidation plan. If you cannot sell enough to cover the tax bill, you are speculating, not investing. Build a three-year exercise calendar and stick to it.
Building the Wealth Stack
Software engineers have a compressed earnings window — usually 15–20 years at peak income. The goal is not to retire early; it is to build optionality. Emergency fund → tax-advantaged accounts → brokerage → real assets. Each layer protects the one below it.
Key Takeaways
- Automate your RSU sales — never let a single employer become more than 10% of your net worth.
- Max out every tax-advantaged account before you touch a brokerage.
- Model AMT before exercising ISOs — a surprise six-figure tax bill is not a learning experience.
- Treat your career like a business: high income is an opportunity, not a lifestyle.
Want the full frameworks? Browse the Wealth Stack.
Browse Wealth Stack