How to choose the right ISO exercise strategy for you
KB Financial Advisor Blog
by Landon Loveall
1w ago
Understand your 5 strategic options and select the best one for your financial plan. Incentive stock options (ISOs) are one of several types of equity compensation you may receive as a tech employee. Intended to retain key talent, incentive stock options give employees of a given company the right to buy company shares at a fixed price. Being granted ISOs is exciting but it’s merely the first step of a long, wealth-building process. Your next step is to devise an ISO exercise strategy to really set yourself up for success. The key is building a clear ISO exercise strategy that’s grounded in th ..read more
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Private company tender offer: What to do when your company announces one
KB Financial Advisor Blog
by Landon Loveall
1M ago
Learn what employee tender offers are, whether you should sell, and how to handle the taxes. While the post-2021 IPO slump didn’t last forever, its ripple effects are present even today. The halt in IPOs led to an increase in valuable, private tech companies flushed with cash and interest from investors. Though the trend of companies delaying their IPOs to accumulate value was also a pre-2021 trend, the IPO slowdown exacerbated delays. Though IPO delays were bad news for the stock market, they put startup employees in a good position, leaving them with dramatic growth in their stock’s pre-IPO ..read more
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How to Build Generational Wealth as a Tech Employee or Founder
KB Financial Advisor Blog
by Landon Loveall
1M ago
A guide to recognizing a single wealth-accelerating opportunity that can help you — and your heirs — achieve financial freedom. Almost every movie ends with a triumphant scene that goes something like this: The hero takes a moment to realize their victories and relish in the afterglow of their achievements. It’s a classic trope. This victorious moment marks a monumental win and defines the end of a journey, but real life doesn’t usually work that way. Normal people like us don’t have the luxury of a concrete finish line. For instance, when you’re building generational wealth, there’s no obviou ..read more
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How to Avoid the IRS Tax Trap on Stock Options
KB Financial Advisor Blog
by Chelsea Rustek
2M ago
You could be overpaying your stock options tax without knowing it — even if you have a tax preparer. Here’s how to dodge this costly tax trap. Exercising your employee stock options is a good thing. After all, it usually means you’re becoming wealthier and smarter about your long-term finances.  But, like it or not, exercising stock options does complicate your yearly tax filing. So much so that if you’re not careful, a mishap can lead to the dreaded IRS tax trap: double taxation. Like the name suggests, double taxation is when your income gets mistakenly taxed twice, costing you double t ..read more
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How to calculate your alternative minimum tax (AMT): 6 simple steps
KB Financial Advisor Blog
by Chelsea Rustek
3M ago
Avoid a high alternative minimum tax (AMT) bill by understanding how ISO exercises impact it. Receiving incentive stock options (ISOs) has its perks. You can eventually sell them for a potentially life-changing payout. A payout that can be your ticket to financial freedom. However, ISOs have a downside too. Depending on how you handle them, you can get hit with the dreaded alternative minimum tax (AMT) on top of the regular income tax you owe. Needless to say, you want to avoid AMT — what taxpayer wouldn’t want to minimize their tax bill as much as possible? But you can’t do that unless you u ..read more
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RSUs vs stock options: Key differences in an IPO
KB Financial Advisor Blog
by Landon Loveall
3M ago
Understand the pros and cons of these equity types, their tax implications, and how to handle them. Your company’s IPO announcement can get the wheels in your head turning about what exact equity you have and how you think about these assets. I’ve noticed a lot of my clients refer to equity compensation or employee equity as “stock options,” but that’s not entirely accurate. Stock options are just one type of equity compensation. There are actually two main types of employee equity you may deal with: restricted stock units (RSUs) and stock options. You can have both or one of these equity typ ..read more
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Post IPO Selling Strategy: 5 Ways to Sell Stock After an IPO
KB Financial Advisor Blog
by Landon Loveall
3M ago
The IPO was announced. You took action and did the 5 things everyone must do. Now, you are in the lock out period, and it is time to develop your post IPO selling strategy. The lock out period is the time when you are restricted from selling your shares. It usually lasts six months. Now is the time to plan. You can use the next six months to prepare for ten years of wealth in one moment. There are five ways to sell your shares after the lock out expires. 1. Sell ASAP The lock out expires. You exercise and sell all vested shares on the first day. This is the simplest approach. A ..read more
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3 ways to establish & live your company values
KB Financial Advisor Blog
by Jackie Kleinman
3M ago
Strengthening your team and business starts with your values. Years ago, I worked with a national firm whose values didn’t exactly align with mine. I had to realize why things felt off, accept it, and move on. Working with parties who aren’t aligned with you is almost never worth it because it holds you back. This is especially true when the misalignment occurs with talent you hire at your company. Now, aiming for value alignment isn’t a new concept. But in my experience as an advisor, I don’t see nearly enough new founders take the time to get clarity on these things. Establishing your compa ..read more
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Should I Buy a House Now or Wait? The Impossible Money Question
KB Financial Advisor Blog
by Landon Loveall
4M ago
Should I buy a house now or wait? There is one question I struggle with more than any other.  It’s impossible to answer. On the surface it’s easy.  Buying a house is a good long-term move. There are tax benefits. You get to deduct your mortgage interest on the first $750,000 of mortgage debt.  There is a capital gains exclusion. There are investment benefits. Your mortgage allows you to use leverage.  A small down payment buys a big house. Your house might appreciate.  The mortgage payoff is fixed so 100% of the appreciation is yours. Your mortgage becomes a way t ..read more
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New year, new tax goals: 4 ways to meet your 2024 tax resolutions
KB Financial Advisor Blog
by Chelsea Rustek
4M ago
Close out your 2023 taxes and set yourself up for a prosperous 2024 with these tax tips. Now that we’ve entered a new year, you’re probably gearing up for a smooth tax season…right? Oh, just me? That’s awkward. You’re probably focused more on new workout regimens, hairstyles, travel goals, and so much more. But consider making mental room for new tax goals It doesn’t have to be hard. I even made you a simple checklist to help get you started. Here are four ways you set yourself up for your smartest tax year yet: 1. Close out the 2023 tax year Your fourth quarter estimated tax payment is due o ..read more
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