Financial Planning for Professionals in Space and Defense
Your career operates at a level most advisors don't fully understand. We work specifically with people in space, aerospace, and defense -- helping them grow their income, manage complexity, and build long-term wealth intentionally.
Who We Work With
Mid to senior-level professionals whose income has grown significantly and whose financial decisions are getting more complex.
Engineers and Technical Leads
Program and Project Managers
Leaders juggling equity grants, high income, and the demands of long program cycles with complex compensation structures.
Executives and Directors
Senior professionals with significant equity, deferred compensation, and a need for a comprehensive, coordinated financial strategy.
Contractors and Transitioners
Professionals moving between roles, companies, or sectors who need to make smart decisions about benefits, retirement, and equity.
What Makes this Niche Different
- Equity compensation at public and pre-IPO defense and space companies can be a significant portion of total wealth -- and easy to mismanage without the right guidance.
- High incomes in this sector push people into upper tax brackets quickly. Without planning, a large grant vest or option exercise can create an avoidable tax bill.
- Benefits packages at aerospace and defense companies are often rich but complicated. Most professionals leave value on the table without realizing it.
- Career transitions between contractors, primes, and government roles introduce gaps in retirement contributions, vesting schedules, and insurance coverage that require careful coordination.
What We Help With
Equity compensation planning
RSUs, stock options, ESPPs, and ESOPs -- we help you understand what you have, when to act, and how to minimize the tax hit when you do.
Tax planning and strategy
Proactive planning around income, equity events, and deductions so you're not caught off guard at year end.
Investment management
A diversified strategy built around your timeline, goals, and risk tolerance -- not a generic model portfolio.
Retirement planning
Maximizing 401(k), pension, and deferred compensation options across the various plans that come with a career in this sector.
Benefits optimization
Maximizing 401(k), pension, and deferred compensation options across the various plans that come with a career in this sector.
Career transition planning
Rolling over retirement accounts, managing unvested equity, and rebuilding a financial plan when roles or companies change.
Most financial advisors over-focus on investment returns at the expense of everything else. For professionals in space and defense, the bigger opportunities are usually in taxes, equity timing, and making sure nothing slips through the cracks as careers evolve. We build comprehensive plans that cover the full picture -- and update them as your situation changes.
We focus on the full picture,
not just the portfolio.
OUR APPROACH
2 Accounts
Underfunded
529 Plans
$185k
Engineer + Spouse
Combined Income:
12,000
Across two grants
RSUs Granted:
$25k/yr
15% discount
ESPP Contribution
$23,500
One spouse maxing
401(k)
Enrolled
Not Maximizing
HSA
Publicly traded aerospace company | Married filing jointly | Two children
The Petersons: Building wealth in the space industry with no coordinated plan
HYPOTHETICAL CASE STUDY
Publicly traded aerospace company | Married filing jointly | Two children
Benefits and Financials | The Petersons
HYPOTHETICAL CASE STUDY
401(k)
One spouse maxing at $23,500
Other spouse not enrolled. No Roth vs. traditional analysis done.
HSA
Enrolled but underfunded
Not hitting the $8,300 family limit. Used as spending account, not invested.
529 Plans
Two accounts open
Contributions are sporadic. No funding target in place for either child.
Home / Mortgage
Owns with mortgage
No plan for how equity comp proceeds integrate with paydown or investing.
Emergency Fund
Thin
Most liquid savings directed toward ESPP, leaving limited cash reserve.
Life / Disability
Employer coverage only
Coverage gaps exist. Not reviewed for a two-child household with a mortgage.
- RSUs have been vesting and accumulating for three years. Shares were sold at vest to cover taxes but a large position remains with a low cost basis and no plan for what to do with it.
- The stock has appreciated significantly since the 2022 grant. The unrealized gain on held shares is meaningful but selling triggers capital gains -- so the decision keeps getting deferred.
- ESPP shares are sitting untouched across two offering periods. The client doesn't know whether selling qualifies for favorable long-term treatment or ordinary income -- a distinction with real dollar consequences.
- Only one spouse is contributing to a 401(k). The other has access to a plan but hasn't enrolled, leaving a meaningful tax-deferred savings opportunity on the table every year.
- The HSA is being used as a regular spending account rather than invested for long-term growth. The family contribution limit isn't being hit either, missing a triple tax-advantaged opportunity.
- The 529 plans exist but contributions are sporadic. With two kids and no funding target, the accounts are unlikely to cover a meaningful portion of future education costs.
- Between RSUs, ESPP, and the 401(k) company match invested in company stock, roughly 60% of the household's investable assets are tied to a single publicly traded company.
- No proactive tax planning exists. RSU vests are creating ordinary income each year without any coordination with the couple's overall income, brackets, or deductions.
The Situation | The Petersons
HYPOTHETICAL CASE STUDY
Publicly traded aerospace company | Married filing jointly | Two children
Publicly traded aerospace company | Married filing jointly | Two children
Planning Areas Explored | The Petersons
HYPOTHETICAL CASE STUDY
RSU Sell Strategy
Building a systematic plan to reduce the concentrated position over time -- selling in tranches to manage capital gains exposure and avoid a single large taxable event.
ESPP holding Period Review
Determining whether ESPP shares qualify for a qualifying disposition and more favorable long-term capital gains treatment versus ordinary income at sale.
401(k) Optimization
Enrolling the second spouse in their employer plan, reviewing Roth vs. traditional elections based on current income, and maximizing combined household contributions.
hSA Maximization
Hitting the family contribution limit and shifting the HSA from a spending account to an invested long- term asset -- one of the most tax-advantaged accounts available.
529 Funding Strategy
Setting a realistic funding target for each child based on projected costs and years to college, then building consistent contributions into the overall cash flow plan.
Tax Coordination at Vest
Coordinating future vest events with total household income to avoid bracket creep. At $185k combined, each large vest can push the household into a higher rate for the year.
Insurance Review
Assessing whether employer-provided life and disability coverage is adequate for a two-income, two-child household with a mortgage -- and identifying gaps to fill.
Concentration & Diversification
Mapping a realistic path to reduce single-stock exposure from 60% toward a more balanced allocation without triggering unnecessary tax events along the way.
The Petersons were doing a lot of things right -- maxing one 401(k), participating in the ESPP, saving for their kids. But none of it was coordinated. Equity shares were accumulating without a sell strategy, the HSA was being underutilized, one spouse wasn't in the retirement plan, and vest events were creating tax bills nobody was planning for. The opportunity wasn't in finding better investments. It was in getting everything working together.
The Takeaway | The Petersons
HYPOTHETICAL CASE STUDY
Disclaimer: This is a hypothetical case study for educational purposes only. It does not represent any specific individual or constitute financial, tax, or legal advice. Results will vary based on individual circumstances.
Start with a 15-minute intro call
GETTING STARTED
No pressure, no commitment. We will get to know each other, answer your questions, and figure out if it makes sense to keep the conversation going.
+ We work with clients in person and virtually.
+ Flexible scheduling including evenings and weekends
+ No account minimums to start a conversation
The Freyr Group is a registered investment advisory firm. This page is for informational purposes only. Services described are general in nature. Individual results will vary based on personal circumstances. Past performance does not guarantee future results. Investment advisory services involve risk including potential loss of principal. The Freyr Group does not provide legal or tax advice. Please consult qualified professionals regarding your specific situation.
