What You Should Know About Double-Trigger RSUs

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What Is a Grantor Retained Annuity Trust (GRAT)?

A grantor retained annuity trust (GRAT) can allow you to avoid large amounts of gift or estate tax while transferring high-value investments to the next generation.   Changing Estate Tax Law While most families don’t have to worry about estate taxes, they can put a ...

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The Basics of Converting ISOs to NSOs

We have previously explained the benefits of ISOs and how they differ from NSOs, but there is still an important difference to discuss. When ISOs are exercised and held for one year (two years from the grant date), the gain receives capital gain treatment, while NSO ...

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How Is Coronavirus Affecting Upcoming IPOs?

The sudden onset of a global pandemic has shaken up economies around the world. When COVID-19 tightened its grip in February and March, markets plunged deeply, dashing—or at least delaying—the hopes of many investors who had anticipated public offerings this year. What ...

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What Is a SPAC?

Often referred to as “blank check companies,” special purpose acquisition companies (SPACs) have been around for decades. Typically created by investors with specific expertise in a particular industry or market sector, a SPAC is a company whose sole purpose is to ...

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What the Hell Is Going On with the Stock Market?

COVID-19 hit the stock market hard. A little over six months ago, WRP held a webinar for all our clients to discuss the state of the market. It was bleak indeed. COVID-19 was raging all over the world, and many places had commenced shutting down. It got worse. On March ...

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The Essentials to Early Exercise of Stock Options

The most exciting (and uncertain) time to be in a company is the beginning. With little in the way of pay and much in the way of work, companies have to get creative when it comes to compensating their employees. This is why those who join early with a startup often ...

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Is a Long-Short Fund Right for You?

As we enter the second half of 2020, many investors have turned to alternative assets to protect them from the economic downturn. No one likes to lose money, and Warren Buffet (Founder of Berkshire Hathaway) said, “The goal is simply to survive the disaster with the ...

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WRP on Financial Times 300 Top Registered Investment Advisers List

WRP Wealth Management has been named to the seventh annual Financial Times 300 Top Registered Investment Advisers, which recognizes top independent RIA firms from across the United States. The FT 300 list is produced independently by Ignites Research, a division of ...

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Intrinsic vs. Time Value of Stocks

Nothing hinders a good decision like greed. While there is nothing wrong with setting goals to earn more in life—which is an idea our entire economy is built upon—when greed grabs hold, we often make bad decisions that can ultimately destroy our long-term success. It’s ...

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5 Ways to Take Advantage of an Economic Recovery

While COVID-19 is going to be here with us for some time, the economic recovery seems to be underway. Of course, there are no guarantees, and should deaths spike suddenly the bottom could be upcoming rather than in the rearview mirror. Whether we’re at the bottom or ...

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5 Steps to an Effective COVID Portfolio

We’ve all been impacted by COVID-19. We have learned a lot about the virus, ourselves, and our economy over the last couple of months, but there is still a lot that remains unknown. While we can be certain that as our society opens back up there will be an increase in ...

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CRTs: The Mr. Hyde of Charitable Trusts

In a previous blog post, we discussed how charitable lead trusts (CLTs) could be used to gain a large tax deduction, offset other capital gains, and fund philanthropic interests. However, that is just one side of the charitable trust world; charitable remainder trusts ...

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Using Charitable Trusts with Stock Options

The numbers don’t lie: Americans are very charitably inclined people. The U.S. has ranked at the top for charitable giving over every country for the last 10 years. So, it should come as no surprise that a number of our clients have participated or plan on ...

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5 Ways to Set Yourself Up for Success When the Stock Market Rebounds

What to do with your stock options when the market is in the preverbal toilet? Nobody likes stock market declines. From 401ks to 529s, a bear market is hazardous to one’s wealth. However, there are five things that you can do to set yourself up for success when the ...

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What You Should Know About Double-Trigger RSUs

In the nascent days of a startup, stock options are the norm. Early employees can expect access to incentive stock options (ISOs), and non-qualified stock options (NSOs), which are leveraged type options that can make someone very wealthy, very quickly. But as a ...

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ISOs – The Importance of 83(b) Pt. 3

In Part I of “The Importance of 83(b),” we conducted a survey of the 83(b) election and discussed in what context the election made sense when it came to restricted stock awards (RSAs). In Part II, we looked at examples of 83(b) elections for RSAs. Now, in this third ...

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Liquidity for Startups Pt. 2: Secondary Market Sales

In Part I of our discussion about liquidity for startup employees, we looked at liquidity options that a company may provide for employees with illiquid stock—specifically tender offers and stock buybacks.  In Part II, we’ll discuss one option that the employee can ...

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An Introduction to Stock Options and Taxes

As the number of startups hit new heights in the Silicon Valley and various companies are utilizing equity to help attract, retain, and motivate skilled workers, the term “incentive stock option” is becoming more common in employment contracts. Although many will use ...

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RSA Examples – The Importance of 83(b) Pt. 2

In Part I of “The Importance of 83(b),” we shared a survey of the 83(b) election, and discussed in what context the election made sense when it came to restricted stock awards (RSAs). In this post, we are going to go through some examples of what can be accomplished ...

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Liquidity for Startups Pt. 1: Tender Offers & Stock Buybacks

If you work for a late stage startup, you are most likely suffering from both mental and physical fatigue.  You’ve worked for many years with the expectation of a big payout from your stock options, but the company doesn’t seem in any rush to go public.  “Unicorns” ...

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ISOs Pt. 1 – Stock Options and Taxes

As we sign on the dotted line and say yes to a job offer, many of us do not completely comprehend the full effect of what we are signing. Aside from income tax on the base salary, we often overlook the tax consequences caused by the other big variable—stock ...

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RSAs – The Importance of 83(b) Pt. 1

Most people have heard of the famous Internal Revenue Code sections 401(k), 403(b), 121, and 1031, yet there are a few that tend to slip under the radar for most taxpayers. One code section that has a meaningful impact on a taxpayer’s return is 83(b).   What is 83(b)? ...

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