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
More from Life
Today is a day to celebrate love in our lives.
And here at ACLU-MA, we know that justice is a labor of love. Here are some of our favorite moments of love and justice in the last year, to brighten your #ValentinesDay.
💞👇💞
Almost exactly a year ago, our clients Hanz and Maudy were reunited after being separated by the cruel "Return to Mexico" policy.
And here at ACLU-MA, we know that justice is a labor of love. Here are some of our favorite moments of love and justice in the last year, to brighten your #ValentinesDay.
💞👇💞
Almost exactly a year ago, our clients Hanz and Maudy were reunited after being separated by the cruel "Return to Mexico" policy.
Yesterday, a family of asylum seekers were reunited. Hanz & his son were subjected to #MPP, a cruel policy that forced them into dangerous cities in northern Mexico. We sued on their behalf, allowing them to rejoin their family in Massachusetts. pic.twitter.com/Kce6MTpS9C
— ACLU Massachusetts (@ACLU_Mass) February 7, 2020
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“We don’t negotiate salaries” is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
Ironies of Luck https://t.co/5BPWGbAxFi
— Morgan Housel (@morganhousel) March 14, 2018
"Luck is the flip side of risk. They are mirrored cousins, driven by the same thing: You are one person in a 7 billion player game, and the accidental impact of other people\u2019s actions can be more consequential than your own."
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
IMPORTANCE, ADVANTAGES AND CHARACTERISTICS OF BHAGWAT PURAN
It was Ved Vyas who edited the eighteen thousand shlokas of Bhagwat. This book destroys all your sins. It has twelve parts which are like kalpvraksh.
In the first skandh, the importance of Vedvyas
and characters of Pandavas are described by the dialogues between Suutji and Shaunakji. Then there is the story of Parikshit.
Next there is a Brahm Narad dialogue describing the avtaar of Bhagwan. Then the characteristics of Puraan are mentioned.
It also discusses the evolution of universe.( https://t.co/2aK1AZSC79 )
Next is the portrayal of Vidur and his dialogue with Maitreyji. Then there is a mention of Creation of universe by Brahma and the preachings of Sankhya by Kapil Muni.
In the next section we find the portrayal of Sati, Dhruv, Pruthu, and the story of ancient King, Bahirshi.
In the next section we find the character of King Priyavrat and his sons, different types of loks in this universe, and description of Narak. ( https://t.co/gmDTkLktKS )
In the sixth part we find the portrayal of Ajaamil ( https://t.co/LdVSSNspa2 ), Daksh and the birth of Marudgans( https://t.co/tecNidVckj )
In the seventh section we find the story of Prahlad and the description of Varnashram dharma. This section is based on karma vaasna.
It was Ved Vyas who edited the eighteen thousand shlokas of Bhagwat. This book destroys all your sins. It has twelve parts which are like kalpvraksh.
In the first skandh, the importance of Vedvyas
and characters of Pandavas are described by the dialogues between Suutji and Shaunakji. Then there is the story of Parikshit.
Next there is a Brahm Narad dialogue describing the avtaar of Bhagwan. Then the characteristics of Puraan are mentioned.
It also discusses the evolution of universe.( https://t.co/2aK1AZSC79 )
Next is the portrayal of Vidur and his dialogue with Maitreyji. Then there is a mention of Creation of universe by Brahma and the preachings of Sankhya by Kapil Muni.
HOW LIFE EVOLVED IN THIS UNIVERSE AS PER OUR SCRIPTURES.
— Anshul Pandey (@Anshulspiritual) August 29, 2020
Well maximum of Living being are the Vansaj of Rishi Kashyap. I have tried to give stories from different-different Puran. So lets start.... pic.twitter.com/MrrTS4xORk
In the next section we find the portrayal of Sati, Dhruv, Pruthu, and the story of ancient King, Bahirshi.
In the next section we find the character of King Priyavrat and his sons, different types of loks in this universe, and description of Narak. ( https://t.co/gmDTkLktKS )
Thread on NARK(HELL) / \u0928\u0930\u094d\u0915
— Anshul Pandey (@Anshulspiritual) August 11, 2020
Well today i will take you to a journey where nobody wants to go i.e Nark. Hence beware of doing Adharma/Evil things. There are various mentions in Puranas about Nark, But my Thread is only as per Bhagwat puran(SS attached in below Thread)
1/8 pic.twitter.com/raHYWtB53Q
In the sixth part we find the portrayal of Ajaamil ( https://t.co/LdVSSNspa2 ), Daksh and the birth of Marudgans( https://t.co/tecNidVckj )
In the seventh section we find the story of Prahlad and the description of Varnashram dharma. This section is based on karma vaasna.
#THREAD
— Anshul Pandey (@Anshulspiritual) August 12, 2020
WHY PARENTS CHOOSE RELIGIOUS OR PARAMATMA'S NAMES FOR THEIR CHILDREN AND WHICH ARE THE EASIEST WAY TO WASH AWAY YOUR SINS.
Yesterday I had described the types of Naraka's and the Sin or Adharma for a person to be there.
1/8 pic.twitter.com/XjPB2hfnUC