The Mind Money Spectrum Podcast

#100. ISO University: Your guide to navigating ISOs in a pre-IPO company.

November 09, 2021 Aaron Agte and Trishul Patel Season 2 Episode 48
The Mind Money Spectrum Podcast
#100. ISO University: Your guide to navigating ISOs in a pre-IPO company.
Show Notes

ISOs in the mid stage of a private company.

In this episode, Trishul and Aaron discuss what you should look for when you've been at a private company for a few years. At this point, your ISOs may have climbed in value, so it's quite the balancing act. Not only do you need to factor in future investment risks, but also you need to analyze the impact of AMT. Furthermore, waiting to exercise can create a golden handcuffs scenario, which you want to avoid. Thus, it makes sense to exercise some ISOs each year. But don't exercise too many, or you'll end up with unintended consequences.

Episode References

MMS #99. ISO University: Congrats, you're hired! Now follow these steps with your new ISOs.
MMS #33. If you have Incentive Stock Options, you need to listen to this episode.
MMS #21. Why the VIX is useless.
Graystone Advisor - When do I Exercise my Incentive Stock Options?
Graystone Advisor - You Should Probably Exercise Your ISOs in December
ISO vs NSO for 83b Elections
$100k ISO Limitation
83b Election
ISO Disqualifying Disposition
MyStockOptions.com
Slack IPO
AMT Preference Items
IRS Underpayment Penalty

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.