The Equifax was only the latest data breach and won’t be the last. Here is how to protect yourself against identity theft.
If you’ve worked in technology startup companies for even a short time, you’ve probably heard a story about or know someone who exercised stock options and got into trouble with alternative minimum tax (AMT). That story most likely involved incentive stock options (ISOs) and a drop in the company’s stock price after the person exercised their option.
Two main types of stock options are offered to employees of technology companies: non-qualified stock options and incentive stock options. This article covers the basic features and tax treatment of non-qualified stock options.
Non-qualified stock options are often called “non-quals,” NSOs, or NQSOs. The term “non-qualified” is tax law jargon that means that this type of option does not qualify to receive special income tax treatment. In contrast, incentive stock options, or ISOs, are qualified to receive favorable income tax treatment.
Publicly traded technology companies increasingly use restricted stock and restricted stock units (RSUs) to give employees ownership in the company. Restricted stock and RSUs are two of the simplest forms of equity compensation, and their relative simplicity is part of the reason for their popularity with companies and employees.
Saving and investing in your company’s Employee Stock Purchase Plan (ESPP) is on our list of permanent recommendations. An ESPP allows you to buy your employer’s stock at a discount of up to 15% or more of its current market value. You can then sell your ESPP shares when you receive them to capture the built-in investment gain.
Publicly-traded companies offer ESPPs to give their employees an opportunity to earn more. ESPPs help companies by creating incentives for employees to contribute to the company’s success, through and aligning their interests with other shareholders.
Last week we took a look at tax advantages and rules to remember for 401(k) plans. This week we will discuss the nuts and bolts of using a 401(k), including contributions, investment options, and beneficiaries.
Using your 401(k) plan requires that you select a contribution amount, investments, and often, a rebalancing frequency. You should also select beneficiaries for your account in the event of your death.
In many households, 401(k) plans are the primary vehicle for tax-deferred saving and investing. In the competitive job market of Silicon Valley, employers find it essential to offer a 401(k) plan to attract top talent, and most companies offer this benefit to their employees. Here is a quick review of this plan’s features and benefits.
Donor-advised funds are the fastest-growing charitable giving vehicle in the United States—and for good reason. Donor-advised funds are a simple, flexible and tax-efficient way of supporting the charities you care about. With their ability to accept complex assets such as private company stock, real estate and venture capital fund partnership interests, donor-advised funds are an important charitable planning tool for Silicon Valley
Investing in many categories of alternative investments, such as private equity, venture capital and hedge funds, requires buying private securities that are not registered with the U.S. Securities and Exchange Commission (SEC) and are not traded in public markets. Federal securities law and regulations place restrictions on who can purchase these private securities. Companies and private funds can offer to sell unregistered securities only to investors who qualify as accredited investors. If you are interested in pursuing direct investment opportunities in private companies, investing in portfolios of private companies through a private equity fund or venture capital fund, or investing in hedge funds or managed futures funds, you need to become familiar with the qualifying requirements for accredited investors
You’ve been approached by a hot new startup company that urgently needs your talents and asks you to come in to interview. The product and technology sound great, and you can’t stop thinking about how much money you’ll make when the company goes public or gets acquired. There are some risks involved, though. This may be a great opportunity—or it may not be. And that leaves you wondering: Just how should you evaluate a job opportunity at a startup company?