When to Exercise Incentive Stock Options [2026] скачать в хорошем качестве

When to Exercise Incentive Stock Options [2026]

Optimize your equity here: 🟢https://techwealth.co/equity?video=2v... Incentive Stock options (ISO) can be complex. When should you exercise your incentive stock options? Your incentive stock options are a high stakes balancing act. If you get it right, you get to enjoy newfound wealth…get it wrong, and a majority of your proceeds go down the drain. Exercising at the wrong time may subject you to a tax approaching a shocking 50 percent. And yes, one single day can make the difference. 📝More Content: https://techwealth.co/   / riley-hale   Videos: 🎬 When to exercise stock option:    • When to Exercise Incentive Stock Options [...   -------------------------------------------------------------------------------------------------------------- 0:00 - 0:20 The stakes 1:20 - 10:32 Benefits of exercising Pre-IPO 10:33 - 12:09 Risks of exercising pre-IPO 12:09 - 13:51 Benefits of exercising approaching and IPO 13:52 - 14:54 Risks of exercising approaching an IPO 14:55 - 15:09 Schedule a meeting with Riley 15:09 - 18:04 Benefits of exercising Post-IPO 18:05 - 19:33 Risks of exercising Post-IPO -------------------------------------------------------------------------------------------------------------- There are two times to exercise, pre-IPO and post-IPO, but I’ll break it up into 3 distinct times when you can exercise: 1: Pre-IPO 2: Approaching IPO 3: Post-IPO ---------------------PRE-IPO--------------------- BENEFITS 1. More choices on when to sell and exercise When a company is private, there are fewer chances to sell your stock. 2. Smaller Alternative Minimum Tax (AMT) By exercising early, that spread may be smaller because the company is worth less. With a smaller spread, you may even avoid AMT altogether. In the case you do become subject to it, the amount owed will likely be much smaller. 3. Potential AMT avoidance By exercising as your shares vest, for instance, you are inadvertently staggering them to the point where the taxes and credits can offset each other. You’re effectively utilizing previous AMT taxes to offset or reduce future AMT tax liability as you continue exercising. 4. Retain tax savings Incentive stock options have tax advantages. Namely, the capital gains tax rate and avoidance of payroll tax. The term that’s used to explain this tax advantage is qualifying disposition. 5. Start the tax advantaged timer sooner In addition to exercising within a prespecified time frame, there is a second requirement you must meet: don’t sell until it has been at least two years from the date of grant and one year from the date of exercise. Be a champion by sharing this video in your company Slack channels so your co-workers can learn about these tips too! RISKS 1. Risk of loss One risk of exercising sooner is that you’ll be purchasing and paying taxes for shares that could potentially be deemed worthless in the future. 2. Liquidity risk The sooner you exercise, the sooner you lose liquidity with your cash or savings. When you exercise, you have to pay for your shares. This ties your money up into something that you’re not sure if (or when) you’ll be able to sell and turn back into cash. ---------------------APPROACHING IPO--------------------- BENEFITS 1. Optimizing liquidity The shorter time your money is locked up, the more access you have to it for other purposes. 2. Smaller risk of loss If your company is approaching an IPO, that means that your company and its shares are more likely to have value. RISKS 1. Your company might not IPO after all Not all young companies take off. 2. More taxes Because you’re waiting a longer period, the company has more time to experience growth and increase in value. This means more potential taxes. ---------------------POST-IPO--------------------- BENEFITS 1. You know if it’s “in the money” “In the money” means you have something to gain by exercising your stock options. 2. The highest liquidity It is much easier to sell public company stock (post IPO) than it is private company stock. RISKS 1. The company could flop on an IPO Waiting to exercise post-IPO might be too late. Why? Not all public companies enjoy their stock price going up. 2. Increased taxes for successful IPOs If share prices skyrocket upon going public, that’s wonderful news...but you may also have to pay more taxes. I 3. Selling right after IPO can minimize gains Once a company is public, the stock prices can drop for a couple of months because all the employees start selling their shares. They all sell at once because the lock-up period ends and they all want to recoup their investment. #incentivestockoptions #ISO #whentoexersiceoptions ⚠️Liability Disclaimer: https://www.techwealth.pro/youtube-di...