The vesting schedule is a series of deadlines that must be met before certain financial events occur. For example, the vesting deadline of a company’s 401k, or most retirement plans, is often the same as the company’s annual meeting. The vesting schedule is a means of ensuring that the financial planning process is complete.
With vesting deadlines, you become more accountable and able to plan for when you must pay your bills, or when you must have money ready to be taken out for an emergency. Also, having vesting deadlines means you’re more likely to have money ready when you need it. This is great, but it also makes it more likely that you will fail to meet one of your goals.
A vesting schedule is a way of having a fixed date on which your company is required to reach certain goals. For example, a company that is required to meet its financial goals on a particular date might vest profits on that date to make sure they can meet the financial goals.
This is a great way to make sure your company isn’t bankrupt, but it can also make it more difficult to meet your goals. For example, companies that vest profits right after they make them might be more likely to meet financial goals on that date, but not more likely to meet their vesting deadlines. And of course, these companies might not meet their deadline anyway, but by vesting profits as soon as they make them they can still meet their vesting deadlines.