Guide for Navigating the Siemens Acquisition of Altair Engineering

If you are an Altair employee, the upcoming acquisition by Siemens in 2025 might leave you wondering how this change could affect your finances, career, and long-term goals.

This brief guide is designed to help you navigate the complexities of the acquisition with confidence. Whether you're managing equity grants, preparing for changes in compensation, or updating your financial plan, we’ll explore actionable steps to ensure you're ready for what’s next.

What This Guide Covers

• Key considerations for managing your RSUs, ESPP, and other compensation
• Understanding the acquisition’s potential impact on your finances
• How to align your financial plan with this career transition
• Five questions for financial planning

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RSUs & ESPP - Key Acquisition Considerations

• Vesting Impacts: Will your unvested RSUs and ESPP accelerate, convert, or forfeit?
• Tax Implications: Be aware of how taxes could impact your current Altair holdings and your broader financial situation.
• Action Steps: What is your plan? Check your award agreements, stay informed about Siemens policies.

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Financial Planning During a Transition

• Evaluate your cash flow: Bonuses, RSU conversions, or severance packages.
• Update your goals: Revisit short- and long-term financial objectives. Are you staying with Siemens or moving on to another opportunity? How does this impact your financial plan?
• Diversify: Review the impact of your company stock concentration. How will you invest the cash from the acquisition?
• Risk: Revisit your risk ability and tolerance. Are your investments aligned with your risk preferences? Do you have an Investment Policy Statement (IPS) to provide a framework for your investment decisions?

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Tax Planning Opportunities and Strategies

• Use of income deferral strategies to manage tax brackets.
• Optimize benefits offered by Siemens. Don’t leave benefits on the table.
• Maximize retirement contributions: 401(k), Mega Backdoor Roth, other IRAs.
• Consider contributions to an Health Savings Account (HSA), Employee Stock Purchase Plan (ESPP), and Deferred Compensation Plan (if eligible).
• Accelerate tax deductions through the use of bunching and itemizing.
• Charitable giving: Reduce taxes with strategic, tax-deductible donations.

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Preparing for the Transition

• What are your career goals post-acquisition?
• How does this change impact your family’s financial and life priorities?
• What is your plan for unexpected outcomes (e.g., relocation, severance)?
• What comes next?
• What is your plan?

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Five Questions For Financial Planning

1. What role does your equity play in the achievement of your financial goals?
2. How do navigate your equity awards to make prudent and timely decisions?
3. What proactive tax planning are you initiating to reduce taxes and avoid costly mistakes?
4. How are you managing your stock concentration risk to ensure you are diversifying properly and investing wisely?
5. Are you financially organized and prepared with a plan to protect your family and assets from an untimely event?

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How TwoTen Planning Can Help

• TwoTen Planning is a fee-only, financial planning firm for tech professionals. We provide help you maximize equity, reduce taxes, and invest wisely.
• We operate as a fiduciary on a flat fee basis.
• Learn more about the Free Wealth Assessment, which includes:
  • Equity Comp Analysis
  • Tax Return Diagnosis
  • Financial Plan Blueprint
• Ongoing support and partnership during your financial journey.
• Based in Austin, TX, serving clients across the USA.

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The Siemens acquisition of Altair represents a significant moment of change and opportunity. By proactively managing your equity comp, understanding the financial implications of the transition, and revisiting your overall financial plan, you can navigate this milestone with clarity and purpose.

At TwoTen Planning, we specialize in helping tech professionals to maximize equity, reduce taxes, and invest wisely. Take control of your financial future today. Contact us to schedule your Free Wealth Assessment and start building a plan that works for you – no matter where this transition takes you.

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The foregoing content reflects the opinions of TwoTen Planning and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as financial, legal, tax, or investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee or assurance that diversification, strategies based on Nobel prize-winning research, or any investment plan or strategy will be successful. Consult an estate attorney or qualified tax professional for specific advice relating to those respective areas.

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