Is it a good idea to exercise vested stock before ipo. With a locking period of 6 months from October or November. Still working in the company Grant price around 38 and fmv around 60 and vested stocks 10k Is it good to exercise now and wait a year and sell to save taxes? What are the points to consider to take a decision here? Tc: base 200k options 10k per year #stockoptions
Any suggestions on cpa in bay area who has good knowledge of stock options
Interested as well!
Rubrik/eng not sure what that means. But in my offer letter it is 38.xx The current value is at 60 the last time i heard. Not sure of exact current price
Looks like 38.xx is strike price
Snowflake still gives stock options at $38 strike price !?
Why not just give RSUs. Exercising at 10k stocks at $38 is so risky as u pay 380K cash to buy the options. Later wait for IPO + 6 months with the hope that stock will be > $38 to make “some” money
I mean it’s risky if you truly believe they will fall below pre-public market value. Read their S1, it won’t. Not the case for snowflake. 100% excercise them if you have the cash to spare OP
In your case, definitely. You’ll pay way less tax if you can
Just curious are these stocks available even if u leave company before ipo?
There are investment firms that will pay your exercise cost and amt for you. SecFI and ESO fund to name a few. This will limit your risk and help you keep your upside.
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Did not save much in last 20 years of life. 20 years of saving 300k in cash 401k 40k Never had luck in investing (100% of times) First time in life seeing this profits through stock options.
What's your strike price for exercising? Look into AMT.
How can you only have 40k in 401k and 300k in cash?