Host John Chapman of the John Chapman Show talks with Vieje Piauwasdy about the differences between incentive stock options and non-qualified stock options, grant date, vesting periods, exercising, and the tax consequences for employees of private companies.

 

Episode Highlights:
Vieje shares his background and the company that he works for, a fintech startup called Secfi.  
What are some of the things that employees come to Vieje for regarding stock options?
What is the difference between ISOs and NSOs?
What would be the ideology to offer their employees 
What are the timeframes for employees for ISOs?
What is the typical timeframe that employees have to exercise stock options?
How do ISO and NSO taxes differ? 
What happens when the spread is much greater than the market value? 
Why is the idea of an early stock exercise something to consider after a vest date? 
If someone has exercised, bought the shares, paid the AMT tax bill, what are the other things for them to think about as far as tax implications? 
Vieje talks about NSOs, when they vest, and exercising them?

 

3 Key Points:
There is a limit of $100,000 that you can offer as an ISO for American employees. 
When you leave a company, you have 90 days to exercise stock options or lose them completely. 
For the US, you are taxed when you exercise stock options. 

 

Tweetable Quotes:
“90% of my day is just helping employees with their stock options.” – Vieje Piauwasdy 
“People have an insane amount of stock options where, if you could pay $1 to get something that is worth $20 its a no-brainer. But, if you are looking at 100s of thousands of options, not a lot of people have that liquidity.” – Vieje Piauwasdy
“The vesting date means when you actually own that (stock) option.” – Vieje Piauwasdy

 

Resources Mentioned:
Vieje Piauwasdy Linkedin
Secfi website
John Chapman Linkedin

Host John Chapman of the John Chapman Show talks with Vieje Piauwasdy about the differences between incentive stock options and non-qualified stock options, grant date, vesting periods, exercising, and the tax consequences for employees of private companies.
&nbsp;
Episode Highlights:
<ul>
<li>Vieje shares his background and the company that he works for, a fintech startup called Secfi.&nbsp;&nbsp;</li>
<li>What are some of the things that employees come to Vieje for regarding stock options?</li>
<li>What is the difference between ISOs and NSOs?</li>
<li>What would be the ideology to offer their employees&nbsp;</li>
<li>What are the timeframes for employees for ISOs?</li>
<li>What is the typical timeframe that employees have to exercise stock options?</li>
<li>How do ISO and NSO taxes differ?&nbsp;</li>
<li>What happens when the spread is much greater than the market value?&nbsp;</li>
<li>Why is the idea of an early stock exercise something to consider after a vest date?&nbsp;</li>
<li>If someone has exercised, bought the shares, paid the AMT tax bill, what are the other things for them to think about as far as tax implications?&nbsp;</li>
<li>Vieje talks about NSOs, when they vest, and exercising them?</li>
</ul>
&nbsp;
3 Key Points:
<ol>
<li>There is a limit of $100,000 that you can offer as an ISO for American employees.&nbsp;</li>
<li>When you leave a company, you have 90 days to exercise stock options or lose them completely.&nbsp;</li>
<li>For the US, you are taxed when you exercise stock options.&nbsp;</li>
</ol>
&nbsp;
Tweetable Quotes:
<ul>
<li>&ldquo;90% of my day is just helping employees with their stock options.&rdquo; &ndash; Vieje Piauwasdy&nbsp;</li>
<li>&ldquo;People have an insane amount of stock options where, if you could pay $1 to get something that is worth $20 its a no-brainer. But, if you are looking at 100s of thousands of options, not a lot of people have that liquidity.&rdquo; &ndash; Vieje Piauwasdy</li>
<li>&ldquo;The vesting date means when you actually own that (stock) option.&rdquo; &ndash; Vieje Piauwasdy</li>
</ul>
&nbsp;
Resources Mentioned:
<ul>
<li>Vieje Piauwasdy <a href="https://www.linkedin.com/in/viejep/">Linkedin</a></li>
<li>Secfi <a href="https://www.secfi.com/">website</a></li>
<li>John Chapman <a href="https://www.linkedin.com/in/johnchapmannewportbeach/">Linkedin</a></li>
</ul>

The John Chapman Show is your source for retirement strategies to help you better manage your time and money. Pre-retirees face some major headwinds: ultra low interest rates, high stock valuations, increasing healthcare costs and longevity, and the ever changing tax and estate laws. If you're planning to retire within the next 10 years, are you on track to attain financial independence? Host, John Chapman, is a CFP® and Partner at WorthPointe, a boutique wealth management firm helping clients get the most from life with the money they do have. For more information, you can check out www.thejohnchapmanshow.com. 

The John Chapman Show is your source for retirement strategies to help you better manage your time and money. Pre-retirees face some major headwinds: ultra low interest rates, high stock valuations, increasing healthcare costs and longevity, and the ever changing tax and estate laws. If you're planning to retire within the next 10 years, are you on track to attain financial independence? Host, John Chapman, is a CFP&reg; and Partner at WorthPointe, a boutique wealth management firm helping clients get the most from life with the money they do have. For more information, you can check out <a href="http://www.thejohnchapmanshow.com">www.thejohnchapmanshow.com</a>.&nbsp;

The John Chapman Show Podcast

Planning to retire in the next 5-10 years? Want to ensure you are retirement ready? 

The John Chapman Show is your source for retirement strategies to help you better manage your investing, tax, insurance and estate planning.  

Pre-retirees biggest risks lie in not just investing the wealth they’ve built, but also in maintaining an up to date and secure financial plan as life changes. 

As you make the final push in your working career, be sure to stay on track with your financial plan so that ultimately you get the MOST from life with the money you do have. 

Host, John Chapman, is a CFP® and Partner at WorthPointe, a boutique wealth management firm helping clients gain financial peace of mind.

Planning to retire in the next 5-10 years? Want to ensure you are retirement ready?&nbsp;
The John Chapman Show is your source for retirement strategies to help you better manage your investing, tax, insurance and estate planning.&nbsp;&nbsp;
Pre-retirees biggest risks lie in not just investing the wealth they&rsquo;ve built, but also in maintaining an up to date and secure financial plan as life changes.&nbsp;
As you make the final push in your working career, be sure to stay on track with your financial plan so that ultimately you get the MOST from life with the money you do have.&nbsp;
Host, John Chapman, is a CFP&reg; and Partner at WorthPointe, a boutique wealth management firm helping clients gain financial peace of mind.

Advertisement