Title: Title: Tech Exec Nears Retirement: Using Cash Ratio to Maximize RSU Liquidation Planning Tagline: Tagline: Ensure smooth transition to retirement by optimizing short-term liquidity. Problem: Problem Statement: John, a 55-year-old VP at a leading tech company, holds $3.2 million in vested RSUs. He plans to retire in two years. While his overall net worth is substantial, he's concerned about having sufficient liquid assets to cover living expenses and potential healthcare costs during the transition period before he fully adjusts his investment portfolio. He needs to understand his current cash ratio to determine if he needs to adjust his RSU liquidation strategy for optimal financial security. His current cash is $150,000, marketable securities are $75,000, and his current liabilities are $100,000. He's worried about selling too many RSUs too quickly and wants data to inform his choices. Solution: Solution Statement: By using the Cash Ratio Calculator, John can quickly determine his ability to cover short-term liabilities with his most liquid assets. He discovers his current cash ratio is 2.25, indicating a strong position. However, understanding this baseline allows him to model different RSU liquidation scenarios. He projects needing $200,000 in cash for the first year of retirement. The calculator helps him determine the optimal number of RSUs to liquidate, factoring in tax implications to avoid over-selling. The companion 'Tax Equivalent Yield' calculator then assists him in comparing the after-tax yield of different short-term investment options for the liquidated RSU proceeds. Finally, he uses the 'Quick Ratio' calculator to see how his liquid assets (excluding inventory, which is irrelevant in his case) stack up against his current liabilities providing another measure of financial health. ROI: ROI Impact: By optimizing his RSU liquidation strategy, John avoids unnecessarily selling $200,000 worth of RSUs, saving approximately $60,000 in potential capital gains taxes. Furthermore, having a clear picture of his cash ratio provides peace of mind, reducing stress and allowing him to focus on enjoying his transition to retirement. Improving his investment decisions and retirement readiness leads to an estimated 15% increase in retirement income due to more tax efficient planning. Description: Description: Approaching retirement with substantial vested RSUs requires careful planning. This calculator helps assess short-term liquidity, ensuring you can cover immediate expenses while strategically liquidating your equity. Category: Lead Gen Calculators: Cash Ratio Calculator, Quick Ratio Calculator