jm + shares   6

Don’t Get Trampled: The Puzzle For “Unicorn” Employees
'One of my sad predictions for 2017 is a bunch of big headline-worthy acquisitions and IPOs that leave a lot of hard working employees at these companies in a weird spot. They’ll be congratulated by everyone they know for their extraordinary success while scratching their heads wondering why they barely benefited. Of course, the reason is that these employees never understood their compensation in the first place (and they were not privy to the terms of all the financings before and after they were hired).'
share-options  shares  unicorns  funding  employment  jobs  compensation 
9 weeks ago by jm
Kevin Lyda's mega pension post
Cutting and pasting from Facebook for posterity... there are some really solid tips in here.

'Some people plan their lives out and then there are people like me who randomly do things and suddenly, in retrospect, it looks like a grand plan has come together. In reality it's more like my subconscious pulls in useful info and pokes me to go learn things as required. If you live/work in Ireland, the following "grand plan" might be useful.

This year has apparently been "figure out how to retire" year. It started late last year with finally organising all my private Irish pensions (2 from employers, 1 personal). In the process I learned the following:

* Many Irish pension plans allow you to start drawing down from them at age 50. There are downsides to this, but if you have several of them it allows you more room to avoid stock market downturns when you purchase annuities.

* You can get 25% of each pension as a tax-free lump sum.

I also learned a few property things. The key thing is that if you have a buy-to-let property you should *not* pay off its mortgage early. You can deduct 75% of the interest you pay against the taxes you'd owe for rental income. That means the interest you pay will essentially be close to or even under the rate of inflation. A residential mortgage might have a lower interest rate nominally, but the effective interest rate is higher.

The Irish state pension is changing. If you are 68 after 2020 the rules have changed - and they're now much simpler. Work for 10 years and you get the minimum state pension (1/3 of a full pension). Work for 20, you get 2/3 of of a state pension. Work for 30, you get a full pension. But you can't collect it till you're 68 and remember that Irish employers can apparently force you to "retire" at 65 (ageism is legal). So you need to bridge those 3 years (or hope they change the law to stop employers from doing that).

When I "retired" I kept a part time job for a number of reasons, but one was because I suspected I needed more PRSI credits for a pension. And it turns out this was correct. Part-time work counts as long as you make more than €38/week. And self-employment counts as long as you make more than €5,000/year. You can also make voluntary PRSI contributions (around €500/year but very situation dependent).

If you've worked in Europe or the US or Canada or a few other countries, you can get credits for social welfare payments in those countries. But if you have enough here and you have enough for some pension in the other country, you can draw a pension from both.

Lastly most people I've talked to about retirement this year have used the analogy of legs on a stool. Every source of post-retirement income is a leg on the stool - the more legs, the more secure your retirement. There are lots of options for legs:

* Rental income. This is a little wobbly as legs go at least for me. But if you have more than one rental property - and better yet some commercial rental property - this leg firms up a bit. Still, it's a bit more work than most.

* Savings. This isn't very tax-efficient, but it can help fill in blank spots some legs have (like rental income or age restrictions) or maximise another legs value (weathering downturns for stock-based legs). And in retirement you can even build savings up. Sell a house, the private pension lump sum, etc. But remember you're retired, go have fun. Savings won't do you much good when you're dead.

* Stocks. I've cashed all mine in, but some friends have been more restrained in cashing in stocks they might have gotten from employers. This is a volatile leg, but it can pay off rather well if you know what you're doing. But be honest with yourself. I know I absolutely don't know what I'm doing on this so stayed away.

* Government pension. This is generally a reliable source of income in retirement. It's usually not a lot, but it does tend to last from retirement to death and it shows up every month. You apply once and then it just shows up each month. If you've worked in multiple countries, you can hedge some bets by taking a pension in each country you qualify from. You did pay into them after all.

* Private pension. This can also give you a solid source of income but you need to pay into it. And paying in during your 20s and 30s really pays off later. But you need to make your investments less risky as you get into your late 50s - so make sure to start looking at them then. And you need to provide yourself some flexibility for starting to draw it down in order to survive market drops. The crash in 2007 didn't fully recover until 2012 - that's 5 years.

* Your home. Pay off your mortgage and your home can be a leg. Not having to pay rent/mortgage is a large expense removed and makes the other legs more effective. You can also "sell down" or look into things like reverse mortgages, but the former can take time and has costs while the latter usually seems to have a lot of fine print you should read up on.

* Part-time work. I know a number of people who took part-time jobs when they retired. If you can find something that doesn't take a huge amount of time that you'd enjoy doing and that people will pay you for, fantastic! Do that. And it gets you out of the house and keeping active. For friends who are geeks and in my age cohort, I note that it will be 2037 around the time we hit 65. If you know why that matters, ka-ching!'

Another particularly useful page about the state pension: "Six things every woman needs to know about the State pension", Irish Times, Dec 1 2015, https://www.irishtimes.com/business/personal-finance/six-things-every-woman-needs-to-know-about-the-state-pension-1.2448981 , which links to this page to get your state pension contribution record: http://www.welfare.ie/en/pages/secure/ RequestSIContributionRecord.aspx
pensions  money  life  via:klyda  stocks  savings  shares  property  ireland  old-age  retirement 
december 2015 by jm
Startup equity gotcha
'Two months ago, an early Uber employee thought that he had found a buyer for his vested stock, at $200 per share. But when his agent tried to seal the deal, Uber refused to sign off on the transfer. Instead, it offered to buy back the shares for around $135 a piece, which is within the same price range that Google Ventures and TPG Capital had paid to invest in Uber the previous July. Take it or hold it.'

As rbranson on Twitter put it: 'reminder that startup equity is basically worthless unless you're a founder or investor, OR the company goes public.'
startups  uber  stock  stock-options  shares  share-option  equity  via:rbranson  work 
june 2014 by jm
an ex-Skype employee dishes the dirt on their buyout and acquisition
some incredible stories -- pretty mind-boggling stuff, I'm amazed people stuck around
skype  startups  legal  share-options  shares  economics 
june 2011 by jm

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