compound (@Compound) / X

compound

2,954 posts

compound

@Compound

Compound manages $5B+ for entrepreneurs, professionals, and retirees who want the personal touch of a trusted advisor and a beautiful digital experience.

Joined February 2010

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compound
@Compound
Apr 8
We officially crossed $5B in AUM, marking 75% growth since January 2025. This growth reflects what happens when you build wealth management around a client's entire financial life, not just a portfolio. Since January 2025, we've: → Added 24 advisors and 700+ new clients →
1.5K
compound
@Compound
Sep 22, 2022
If you joined Figma in ~2018, received 250k stock options, and exercised them all, your net outcome today would be $8.16m But if you waited until the acquisition to exercise, you’d take home $7.50m – a difference of $657,822 Let’s break it down:
compound
@Compound
Oct 20, 2022
Early employees from some unicorn companies like Stripe and Quora may lose ALL of their unexercised startup equity Some people may lose *tens of millions of dollars* of equity Here is what is happening:
compound
@Compound
Oct 6, 2022
If you own startup equity, you may be eligible for $10M+ in tax-free capital gains You can get this treatment if you qualify for something called the qualified small business stock tax exemption (QSBS) Here’s how it works:
compound
@Compound
Sep 29, 2022
Imagine two engineers join Uber and Zoom in 2017: - Uber engineer’s equity package: $676k over 4yrs - Zoom engineer’s equity package: $228k over 4yrs Today, - Uber engineer’s equity is worth ~$537k - Zoom engineer’s equity is worth ~$5.02m Here’s how this happened:
compound
@Compound
Oct 20, 2022
Replying to @Compound
Before we get going: this thread draws from the excellent article by @Kellblog on a similar topic You can take a look at his full essay here:
Avoiding the Ten-Year Stock Option Trap (and Other Stock-Option Considerations)
From kellblog.com
compound
@Compound
Oct 20, 2022
Replying to @Compound
This is due to something called “stock option expiration” For the majority of Silicon Valley compensation plans, your stock options expire after 10 years So if you’ve been at a company for the past 10 years, you could have all of your options expire, leaving you with no equity
compound
@Compound
May 29, 2023
How @lennysan writes such good essays:
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compound
@Compound
Feb 6, 2023
This thread contains everything you need to know about startup stock options and taxes:
29K
compound
@Compound
Oct 20, 2022
Replying to @Compound
When these rules were made, the average startup would go public in around 4 years (hence the standard 4-year vesting period) 10 years for option expiration was essentially a proxy for “infinite time” and didn’t cause these problems for employees until recently
compound
@Compound
Oct 20, 2022
Replying to @Compound
Imagine you joined a startup in 2012 as an early employee and received stock options (400,000 options with a strike price of $0.10) The company has done very well and the latest 409A is now $20/share You are now a paper millionaire, worth $8M (before taxes)
compound
@Compound
Oct 16, 2022
If you pass away and you don’t have a trust, your estate may be on public record for anyone to see and your family can lose up to 7% of your assets to pay for probate (depending on which state you reside in) Here’s how trusts work:
compound
@Compound
Oct 20, 2022
Replying to @Compound
Option 1: Exercise your stock options Using the example above, this would cost $40k to exercise the options You’d also have to pay the taxes on the spread which could be up to an additional $1.9m As @kellblog mentions in his blog: “This is, in fact, the problem statement.”
compound
@Compound
Oct 20, 2022
Replying to @Compound
Since companies are staying private longer, employees sometimes face a situation where their options are going to expire And because you’ll have to pay both the exercise cost and the taxes, getting out of this situation can cost hundreds of thousands or millions of dollars