Insights

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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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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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Using Charitable Trusts with Stock Options

The numbers don’t lie, Americans are very charitably inclined people.  The US has ranked at the top for charitable giving over every country for the last ten years in a row. 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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The Importance of 83b - Part III - ISO's

In Part I of “The Importance of 83b”, we did a survey of the 83b 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 83b elections for RSAs. In this third part, we’ll ...

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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 start-ups 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 and more common in employment contracts.  Although many ...

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The Importance of 83(b) Pt. 2 - RSA's

In Part I of “The Importance of 83b,” we did a survey of the 83b 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 through ...

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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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The Importance of 83b - Part I - RSA's

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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