401k vs Stock Options
- Thread starter LineSkiCat14
- Start date
Examine the existing 401k fees versus the fees in a new IRA.
Also if youre young, id take the stock options. You obviously believe enough in the company to work for them. If you help them grow, youll heavily profit. But yes id review the class of stock etc so youll know exactly what youre getting an option for.
Also if youre young, id take the stock options. You obviously believe enough in the company to work for them. If you help them grow, youll heavily profit. But yes id review the class of stock etc so youll know exactly what youre getting an option for.
It's a software company, PaaS or Platform as a Service. Definitely one of the bigger players in that market. Doing very well, just got two different class funding's from VCs.
Hope it's alright I don't give the company name away. Just don't feel comfortable with that on an internet forum, heh. Obviously there's only so much you can do with that information.
Sounds like the bigger question is becoming how to manage my 401/IRA in the event that I leave my current employer. Check what the investment firms fees are? Make sure I'm mostly equity at my age? And maybe, if I'm comfortable enough, manage it myself? Or pick some different funds?
As always, thanks for the help.
Hope it's alright I don't give the company name away. Just don't feel comfortable with that on an internet forum, heh. Obviously there's only so much you can do with that information.
Sounds like the bigger question is becoming how to manage my 401/IRA in the event that I leave my current employer. Check what the investment firms fees are? Make sure I'm mostly equity at my age? And maybe, if I'm comfortable enough, manage it myself? Or pick some different funds?
As always, thanks for the help.
401ks give you like 10-15 options. With IRAs you have thousands. Don't stay there because of fees. Not to mention you'll be calling your ex employer for the rest of your life for investment purposes.
Roll it over to IRA. No brainer
Roll it over to IRA. No brainer
Some thoughts on options. You need to figure out how much equity you are being offered. Did the provide the "float" or did they just tell you how many options you will receive (e.g. 100,000 options might sound great, until you notice that 300M shares have been issued)? Do you know (for sure) what the valuation of the company is? Are they forthright with financials? If the answers to any of these are "no," you ought to be very cautious. Options are not stock. If/when you leave the company your option to purchase stock will go away. At that juncture, you can either pony up the money to buy the stock outright (which may or may not be worth it), or you can just let the options dissolve.
Exercising the options also has substantial tax ramifications. Be cautious and make sure you only pay capital gains.
Final note on startups. There are two liquidity events for your equity: acquisitions and IPOs. If you IPO, sell a bunch of stock and hedge your investment. Acquisitions only really help the founders and *maaaaybe* a few early hires--even when the price is ~$100M. You might get a retention bonus ~few hundred thousand (if you are lucky), but it isn't the type of F-you money that startups promise.
Apprenda...that would be my guess.
Also, you're young. Take a chance in life. I did during the dotcom days...didn't pay out in the long run, but it was good times and learned a ton.
As always, thanks for the help.[/QUOTE]
I knew the second I mentioned what they did Albany was going to figure it out lmfao.
Pretty sweet company from everything I gathered. Beers on tap in the kitchen? Gym down the hall? Sold.
Pretty sweet company from everything I gathered. Beers on tap in the kitchen? Gym down the hall? Sold.
I worked for a company that had amenities like that in NYC for about a year and a half. Lunch every day, pool table, etc. It was at the height of the dotcom era. By the time my options vested they were worthless. So, make sure it is a company that is going to last.
Like LadyCat said earlier, it would suck for the company to fold before your options vested. If you believe the company is on solid footing then the move makes sense.
Just do it...the money stuff will all work itself in the end. Even if you forgo a few years of 401K contributions, I would still say you should pull the trigger and try it out. I am sure you will be worked like a dog, but I wouldn't change the decisons I made during the dotcom days.
I just moved back to the area (Slingerlands) after a couple of years in Queens. You'll have to come over sometime for a UK game or something.
Just understand that because they offer you stock options does not mean they'll go public anytime soon if ever. My neighbor received options 10 years ago from the company he works for. He's still waiting to be able to actually do something with them.
Again, assess your income increase and the other benefits. At the end of the day, the 401k investments are still from your money. Your current company offers a very small match. If your increase offsets that, then remove it from your thought process and look at everything else. You have multiple investment options if you switch companies, they're just not company supported.
Again, assess your income increase and the other benefits. At the end of the day, the 401k investments are still from your money. Your current company offers a very small match. If your increase offsets that, then remove it from your thought process and look at everything else. You have multiple investment options if you switch companies, they're just not company supported.
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Are you thinking about going to work for Entertainment 720?
Good deal. Always down to catch some games. Depending on your family obligations, I take the first two days of the tournament off, grab a bunch of friends (mostly Duke fans, some Notre Dame, and others who just love the sport), head to Juniors at noon, and watch all 32 opening games. We know the bartenders and staff, and it's just a nice 4-day vacation. Always looking to add people.
Funny enough, if I were to take this job AND make out with some hefty stock options, one thing I would look into is opening up a bad. Bar owning is in my lineage dating back to the 1800's. Would love to get something opened, and it would naturally be a Kentucky hang out.
Maybe one day!