Hey fellas. So I got a job opportunity thrown my way. Similar companies, both in their more "adolescent" start-up years. Pay will be a bit better, and some better benefits, but also some worse benefits. By and large, it's just a step forward in my career.
The area of concern is that the company offers "Stock Options", I don't know to what extent, either in amount, time, etc. I just know it's for all employees and you can kind of tailor your pay to be a percentage of SOs. Not knowing much about SOs, I read into it, and it seems like a good, but risky perk. You only have the OPTION to buy stocks at a low price. And when the company goes public and/or does well, you could be sitting pretty. Or.. the company tanks and you just lost out on a big chunk of salary. New company received two classes of funding recently but has NOT gone public (to my best knowledge). In my opinion, they offer a great product, one of the best in it's class, and are clearly garnering attention. I think the company is primed for growth, atleast over the next decade.
Sounds good, but the catch is there is NO 401K. Zero. I'm a pretty big proponent for 401K, because being young, I see how much it can grow by the time you retire. My current company matches 7% and I put in 8%, so a pretty sweet benefit, that I may potentially be giving up.
So my question is, and my apologies for not having more details, as this is all I know for now, what would you pick? Why? What things should I be concerned about? And if I choose the new company, what the hell do I do with my old 401K? Can I still add to it myself? Roll it into a Roth IRA?
The area of concern is that the company offers "Stock Options", I don't know to what extent, either in amount, time, etc. I just know it's for all employees and you can kind of tailor your pay to be a percentage of SOs. Not knowing much about SOs, I read into it, and it seems like a good, but risky perk. You only have the OPTION to buy stocks at a low price. And when the company goes public and/or does well, you could be sitting pretty. Or.. the company tanks and you just lost out on a big chunk of salary. New company received two classes of funding recently but has NOT gone public (to my best knowledge). In my opinion, they offer a great product, one of the best in it's class, and are clearly garnering attention. I think the company is primed for growth, atleast over the next decade.
Sounds good, but the catch is there is NO 401K. Zero. I'm a pretty big proponent for 401K, because being young, I see how much it can grow by the time you retire. My current company matches 7% and I put in 8%, so a pretty sweet benefit, that I may potentially be giving up.
So my question is, and my apologies for not having more details, as this is all I know for now, what would you pick? Why? What things should I be concerned about? And if I choose the new company, what the hell do I do with my old 401K? Can I still add to it myself? Roll it into a Roth IRA?