If you're a tech employee who has been granted stock options as part of your compensation package, it's essential to understand the tax implications associated with these options. In particular, you may be subject to the alternative minimum tax (AMT) if you exercise incentive stock options (ISOs). This piece will explore the basics of incentive stock options and the alternative minimum tax.
With several large bank failures in recent months, we are all reminded of the 2008 Great Financial Crisis and Recession, when millions lost their jobs, homes, and ways of life. While many factors contributed to this economic disaster, one term can cover nearly all of them: systemic risk. The financial system plays a crucial role in the global economy, facilitating the flow of funds, managing risk, and supporting economic growth. However, it is also vulnerable to systemic risk, which can have far-reaching consequences for the stability of financial markets and the broader economy. Let's look at what systemic risk is and how it can impact your behavior as an investor.
Spring is the perfect time to freshen up not just your home but also your finances. As a tech professional, you work hard to build a successful career and secure your financial future. However, just like your physical space, your wealth plan may also need some spring cleaning to ensure it is in optimal shape.
In times of market uncertainty, investors often turn to sayings such as "those who fail to learn from history are doomed to repeat it" and "history never repeats itself, but it does often rhyme." When it comes to the daily headlines, both quotes are relevant, given the long history of banking crises and market swings.
Over the last several decades, employee equity has become a much larger part of employee compensation. Although not limited to tech companies, it has become especially popular among private and public tech companies to align employee incentives with that the company's performance of the company. The rationale is that if employees are compensated in company equity, their equity value will improve over time as employees are incentivized to maximize their company equity through greater work performance. Through equity compensation, employees have more "skin in the game," so to speak, concerning the company's performance.
Business owners wear a lot of hats. Ideas, management, execution, funding, and all other tasks business owners take on are essential functions within all company areas. Think of these as different hats a founder must wear.
Last week, one of the largest single value destruction events occurred in market history. As a result, many investors might be asking why, or even how, did this happen?
When it comes to employee compensation, many tech companies provide equity and stock-based benefits to their employees. The intention behind this kind of stock-based compensation is to align the performance interests of the employee with the employer. One common form of equity-based compensation from publically traded and late-stage private, VC-backed tech companies are restricted stock units (RSUs).
The Democratic agenda for changing the tax code is in, and the potential changes are wide-sweeping. This bill has the potential to change the tax code arguably more than the 2017 Tax Cuts and Jobs Act under the Republicans and President Trump.
I've been in the workshop, choppin' wood for a year now since launch. So much so that I managed to fly by the official 8.17 public launch anniversary without even so much as a thought. Not until the start of this month, when I take stock of the previous month and chart out the next, did I remember. I'll spare the metaphors and hyperbole, as I think they are often overused and are disserving to the original context. So I'll just state it plainly, I've been grinding it out for my clients and future clients.