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I contacted for 10 years and managed to save up about 200k. Started at pre IPO company and walked away with 2.5m after taxes in 7 years. Big difference.
by humbleguy 4y ago
I contacted for 10 years and managed to save up about 200k. Started at pre IPO company and walked away with 2.5m after taxes in 7 years. Big difference.
- scarface74 4y agoAnd I’m sure that some people who played the lottery actually won. That doesn’t mean that statistically counting on a payout from equity earned from a startup is worth it.
- ipaddr 4y agoI worked at a startup for 9 month.. I left decided not to exercise any options and they got purchased very shortly after for a higher amount than anyone expected. I got a slightly higher paying position that allowed me to scrape together enough to qualify to buy a house in a large city. If I would have waited another cycle I would have been priced out. 10 years later I'm up 2 million on the house, lost 20,000-40,000 grand on the startup options. I wasn't forced to move in order to full vest and be tied to a dead product for 2 years while they figured out how to move anything of value into their applications. There are a lot of ways to earn a million and taking more cash and investing yourself could yield more.
- sgtnoodle 4y agoImpressive gain on the house! If you didn't exercise the options, do you mean you lost out on the opportunity for 30k? Are you tapping into the value of your home with a mortgage? Otherwise, it seems like that's even less liquid than private stock (unless you move out.)
- ipaddr 4y agoThe 30k was from lost stock. I did tap into the value recently. It's more liquid compared to most private stock but nowhere as liquid as public stock. The one advantage is all profits on the house are tax free.
- davedx 4y agoI don't think the probability of making 2.5m from a single startup is very high.