Think of this as investing in your company. If your company fails, your options will be worthless.
If your company does well, exercising too late will be costly.
THREAD:
Wealth tips for founders & early employees...
• Secondaries
• Tax benefits
• Hiring a CPA / Financial Advisor
• Diversifying
• Tools I use
• and more...
Think of this as investing in your company. If your company fails, your options will be worthless.
If your company does well, exercising too late will be costly.
Secondary transactions typically first occur at the Series B [although if your numbers are up and to the right & there's demand for allocation -- it can happen at the A].
Take a small % off the table to de-risk yourself financially (rent, food, transportation, etc)
This way it keeps your cap table clean and gives your investor slightly more allocation.
Look over your ROFR/Co-sale agreements and chat with your co-founders and/or investors.
Make sure you negotiate the discount on the Preferred share price and not Common.
5-20% is considered normal.
FF Preferred Stock is essentially common stock with a twist that allows it to be converted to preferred stock.
If you’re currently incorporating, talk to your counsel about this.
This will save you time & energy when selling secondaries.
Secondary transactions usually result in a big tax event (short/long term cap gains, etc).
Reach out to a CPA that specializes in this.
If you're in the middle of a secondary sale, DM me and I'll be happy to connect you with mine.
When selling qualified stock, you can exclude gains of up to $10 million in federal (and sometimes state) tax.
A few requirements to qualify:
• C Corporation
• Total gross assets are < $50 million at time of incorporation
• Have held onto the stock for at least 5 years
FL, NV, TX, WA, and others don't impose an income tax.
Depending on your transaction size, this can be a sizable amount of savings.
But don't move solely for the purpose of saving on taxes.
Live where you enjoy waking up each morning.
Contribute the maximum amount annually ($6-7k).
The gains from this account will be tax free when you retire.
Self-directed IRAs are useful as they give you more flexibility in choosing your investments.
This is a tax incentive to encourage those with capital gains to invest in low-income communities.
(1) Investment held for 5 yrs → 10% tax reduction; 7 years → 15%
(2) Tax on reinvested cap gains in an OZ fund held for 10 years is permanently forgiven
(3) Reinvested cap gains are deferred until the OZ fund is disposed or Dec 31, 2026
Reach out to your immediate network & ask who they use.
Interview a ton of people.
I *highly* recommend hiring someone who has direct experience in handling founder/employee liquidity (vs a generalist CPA).
It'll save you money & headaches in the future.
Lean on your network and investors for intros.
Don't be afraid to fire your advisor if they aren't producing results.
Fees can have a wide range based on your total AUM.
~1% is typical, but fees add up overtime.
"Concentration is how you get rich, diversification is how you stay rich"
Invest in asset classes based on your risk level, but don't invest in a million different things:
• Commodity futures
• Crypto lending
• Collectibles
• Real Estate
• Volatility
• Lending
• Kubera: Portfolio tracker
• Interactive Brokers: Brokerage Acct / Margin line
• Robinhood: Stocks & Crypto portfolio
• Notion: Deal Memos
• AngelList: SPV, Fund, and Angel Investing
• Reddit: /r/fatfire for others stories
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Krugman is, of course, right about this. BUT, note that universities can do a lot to revitalize declining and rural regions.
See this thing that @lymanstoneky wrote:
And see this thing that I wrote:
And see this book that @JamesFallows wrote:
And see this other thing that I wrote:
One thing I've been noticing about responses to today's column is that many people still don't get how strong the forces behind regional divergence are, and how hard to reverse 1/ https://t.co/Ft2aH1NcQt
— Paul Krugman (@paulkrugman) November 20, 2018
See this thing that @lymanstoneky wrote:
And see this thing that I wrote:
And see this book that @JamesFallows wrote:
And see this other thing that I wrote:
A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
Nano Course On Python For Trading
==========================
Module 1
Python makes it very easy to analyze and visualize time series data when you’re a beginner. It's easier when you don't have to install python on your PC (that's why it's a nano course, you'll learn python...
... on the go). You will not be required to install python in your PC but you will be using an amazing python editor, Google Colab Visit https://t.co/EZt0agsdlV
This course is for anyone out there who is confused, frustrated, and just wants this python/finance thing to work!
In Module 1 of this Nano course, we will learn about :
# Using Google Colab
# Importing libraries
# Making a Random Time Series of Black Field Research Stock (fictional)
# Using Google Colab
Intro link is here on YT: https://t.co/MqMSDBaQri
Create a new Notebook at https://t.co/EZt0agsdlV and name it AnythingOfYourChoice.ipynb
You got your notebook ready and now the game is on!
You can add code in these cells and add as many cells as you want
# Importing Libraries
Imports are pretty standard, with a few exceptions.
For the most part, you can import your libraries by running the import.
Type this in the first cell you see. You need not worry about what each of these does, we will understand it later.
==========================
Module 1
Python makes it very easy to analyze and visualize time series data when you’re a beginner. It's easier when you don't have to install python on your PC (that's why it's a nano course, you'll learn python...
... on the go). You will not be required to install python in your PC but you will be using an amazing python editor, Google Colab Visit https://t.co/EZt0agsdlV
This course is for anyone out there who is confused, frustrated, and just wants this python/finance thing to work!
In Module 1 of this Nano course, we will learn about :
# Using Google Colab
# Importing libraries
# Making a Random Time Series of Black Field Research Stock (fictional)
# Using Google Colab
Intro link is here on YT: https://t.co/MqMSDBaQri
Create a new Notebook at https://t.co/EZt0agsdlV and name it AnythingOfYourChoice.ipynb
You got your notebook ready and now the game is on!
You can add code in these cells and add as many cells as you want
# Importing Libraries
Imports are pretty standard, with a few exceptions.
For the most part, you can import your libraries by running the import.
Type this in the first cell you see. You need not worry about what each of these does, we will understand it later.