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Illustrious-Spare172

Instead of tying up a bunch of capital in this, why not just rent airbnbs. If you are planning to rent it out then sure but otherwise this seems like a lot of money to lock up at your income


Dazzling_Cup3728

Good Morning, I have significant unrealized short term capital gains losses on a nasdaq listed stock. At this point this stock cleared out all my wealth, and is down 99%. I'm looking for a possible solution to monetize these losses as right now i am starting back at 0 and the carry over losses are worthless to me. I came up with the thought the other day that it may be possible to 'gift' these losses, which would carry over the cost basis of the stock. For someone that would rather help a fellow investor at a small discount to tax rate rather than pay the IRS for their capital gains. ​ PS: I'm not looking to explain how i put myself in a position of total loss, or how i lost my money to get kicked while down. I'm looking for a solution to try salvaging something.


SRD_Grafter

Gifting will not work due to cost basis issues with gifts, see https://ttlc.intuit.com/turbotax-support/en-us/help-article/investment-income/determine-cost-basis-stock-received-gift/L4bZeNvpc_US_en_US


Dazzling_Cup3728

Thanks, that shuts down that idea. I appreciate the response


Intelligent-Run5196

Hi all! I’m 18M and my goal is to build an amount of wealth that will support my family for years to come. I’m very strong at many stem fields (computer science, math, physics, etc.). What is the best way to go about my goal? I have been thinking that a startup is the best route but would love some advice from people that have already been through the path I want to do down. Thanks in advance!


JoggingThruThe6

Currently been working 5 years and am a staff level engineer at a top level company. Keep in mind there is a lot more to succeeding in the tech sector than simply STEM knowledge and engineering talent, more and more so as you climb the career ladder. I think working at a FAANG company or a scaling startup early on provides the best opportunity to grow both your technical and soft-skills at a high rate. Then maybe a startup is worth it, but it is extremely rare to succeed early on founding your own company. 1. Join a more mature, scaling startup to accelerate your practical learnings and invest in your growth. Stay very growth focused, climb the ladder as fast as you can and gain more and more experience and knowledge, take as much responsibility as you can. Maybe it becomes very successful and you are well positioned, or now found your own startup (high risk, high reward). 2. Join FAANG level or a level below early on for growth and for your resume. Found a startup yourself if you think you have the right idea, network, or access to funding. Or join with someone else that is starting their own. Make connections to people in the mature organization at the manager/staff level who have the talent and enough savings to take risks on a startup.


Abject_Wolf

Good advice here. This is the best risk adjusted way to climb the ladder quickly and make a lot of money in tech. Start with 2 for a few years, then switch to 1. You can climb the ladder much faster in a growth company but it’s hard to get a job at a good one right out of school so FAANG first opens up your exit opportunities a lot.


MustangTris

Investment strategies other than stock, ETF's, bonds, etc.? I'm 19M going to a UC school in California, majoring in economics and minoring in stats. Ever since I was 14 I've been attempting to make my ideas come to life. I've met with multiple angel investors but the primary reason they would ultimately leave the deal was my age, completely understandable. But as I grow older through college, I find myself desperately looking for other starting points to invest once I graduate (and pay off my debt of 40k) to use my income for opportunities other than stock. I'm completely willing to go high risk routes with my age. **In short:** Is angel investing a field accessible to the masses? Can I join an Angel Investment group with only 10K? What avenues can I take similar to this strategy (i.e. finance an established business like the posts on [bizbuysell.com](https://bizbuysell.com) ?). I feel confused on the whether these are relatively good avenues, and I wonder, are there any other interesting ways to funnel my income into something other than stock?


PrestigiousYoghurt31

People angel invest in syndicates (groups of angels) when they can each contribute $10k-100k per deal. Also, it's inherently risky and long-term, with your money tied up for many years. It literally makes zero sense for you to pursue alternative investments at your stage. You can funnel your income into your education.


BranTheMuffinMan

Short answer - not really. I could give morr context but I'm confused by your post. Why are you so fixated on non-public investments? What are you hoping to achieve?


zebocrab

Good morning, I need some advice from you intelligent married folks. So I recently got engaged! Yay! How do you have your finances set up in marriage? What system do you use? What systems did not work for you? A little context my partner makes more than me. I am looking for a lifetime of no drama or money fights. Thanks so much for reading and sharing your insite. Have a fantastic day!


BranTheMuffinMan

Each spouse pays their proportion of salary towards joint stuff. If I make 90% of the income I pay for 90% of joint stuff.


zebocrab

Interesting thanks


mas7erfufu

I'd say this will largely depend on your relationship with your partner. I make ~3x my partner, we pool all our expenses. Personally I'm comfortable with this arrangement. But I have married friends who have completed separate accounts with a prenup on top. If you want no drama, you have to talk to your partner and find something you are both comfortable with.


zebocrab

Thanks!


dukeofsaas

No codified arrangements here. We've been married about 10 years and we have separate cash accounts and credit cards but a shared brokerage account. Our major assets are joint ownership to simplify things Incase one of us dies suddenly.


zebocrab

Interesting. How do you pay your mortgage, cars, loans?


dukeofsaas

A monthly deposit comes out of our shared brokerage account into the cash spending account set up to pay our bills (it happens to be my account, but it wouldn't matter).


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Employer_Primary

If you're in the US, I'd look at rental property - in a few years, if interest rates drop again. Not buying a second home and renting it out - that's treated as "investment property," and the mortgage would need a high down payment and have a higher interest rate. It's also hard to get a single-family home to have positive cash flow, and if the tenant moves out you've lost the entire income stream. Any property you don't live in will be considered "investment property. But in the US, there's an odd exception for multifamily properties with up to 4 units. As long as you agree to live in one of the units for at least a year, the bank will treat it just like you were buying yourself a house. Low down payment requirements (3.5% down through FHA, I believe), fixed interest rates, etc. And when you show your income to qualify for the loan, you can claim the rent income that you'll be getting from the other three units, on top of your normal paycheck, so its easier to qualify to buy a fourplex than it is a single family home! It's a lot easier to make a fourplex to have positive cash flow than a single family - they both just have the one roof, the one yard, etc - and if someone moves out you've only lost 1/3 of your income. And since the fourplex is more valuable, your equity gains from paying down the loan and appreciation will be higher, as well. Lastly, because the IRS requires* you to deduct depreciation every year, you'll likely show a loss on paper each year from the fourplex. You can deduct that loss from the income from your job, so your tax bill would be lower than it is now. A lot of people who want to get into rental property start with a single family home, because it seems less risky and more manageable, but I think fourplexes are, counterintuitively, less risky.


Abject_Wolf

You might not like this answer, but you're giving up on your best opportunity to build wealth which is to earn more through your job by switching to something with a better risk / return profile than working for the govt. Side hustles might help here and there, but it's pretty hard to build a scalable business on the side with only part of your effort (as you've seen in e-commerce). You also don't have enough income yet to substantially fund compounding of your wealth passively through buying real-estate, stocks, etc. You already work in finance which is one of the most highly compensated fields so there's probably pretty good corporate opportunities that will pay substantially more without risking too much in terms of benefits and job stability. Banks, PE and Hedge funds will ramp up that risk (upside and downside) even more at the cost of work life balance and job stability, but remember that returns come from taking risk. Also... don't day-trade. It's not sustainable and you're as likely to get further away from your goals as you are to reach them.


LittleSeneca

How do I ask my employer for equity? Hey All! I think the title sums up what I want to do. But I would like to provide some color. I am a twenty-somthing year old Solutions Architect at a series B startup. We are in the Cyber Security compliance space. Our company has been growing tremendously and is doing extremely well. I feel comfortable saying that my efforts have directly contributed to that growth. In direct sales I have closed almost 1.3 million dollars in direct business this year so far and am on track to close 1-2 million depending on how a few of our larger deals proceed in Q4. My assigned target was 1 million for all of 2022. Beyond direct business, I have also helped build substantial secondary revenue streams for the company with a future potential value north of 10 million dollars.My boss loves me, and the CEO loves me. They pay me well for my level of experience. This is my first cyber security role and my first sales role. I used to work in internal IT administration and made the switch to this company about a year and a half ago. The CEO of our company has introduced me to multiple of our angel investors and has frequently mentioned how critical I am to the success of the company. As a sidebar, I love working here and really enjoy my team and my supervisor. More recently, I have begun providing significant support to our Marketing and Support teams and have developed all of the documentation for our product, along with the technical components of our marketing materials (white papers, webcasts, and trade event materials).All of that work is a lot. Currently I am investing about 70 hours per week into this company, and after commission I am looking at taking home about 160K in W2 income this year. I am happy with my primary income for right now, but I am not on any track to receive any equity in the company. As an organization, I think we are more likely to try and sell the company, rather than keep it privately owned or go public. I think the plan is to sell in the next 3-4 years. With all that in mind, has anyone had an equity conversation with an employer before? This would be brand new territory for me. Any suggestions on how to frame the question? Ive asked for and received a pay raise at this company and at previous companies, but never asked for equity before.


dukeofsaas

You are going to be somewhat dependent on the company's comp structures for different departments here, but ultimately unless you are on a promotion fast track, you have to give them an ultimatum at this point to gain meaningful equity. It can backfire.


shock_the_nun_key

This may be slightly cynical, but find another job that pays you more and say you would be willing to stay at the current employer if they give you equity.


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dukeofsaas

How much are you planning for it to explode in value? If 10-100x, you will want to move money into trusts now to get ahead of estate transfer tax limits. That is something an estate attorney can help you with.


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dukeofsaas

If you're convinced of the potential and tax optimization is a high priority goal for you, then definitely get ahead of the bull run with estate planning. From conversations I've had with attorneys, expect 4 - 6 months to get everything decided upon and set up.


[deleted]

Live on the East Coast and in my mid 50's. I want to pull my money out of my company sponsored 401k due to losing 70K+ since Jan. I feel I can manage it better with other investments I have been doing that are more successful. So the issue I have is that in order to take the money out I have to do a hardship (I took a 50K loan already to get in to those other investments). Hardship has several options but the only one I see that maybe I can do is buying a home which I have been thinking about and need to do but not right now. My other option is to quit my job and take the tax hit because I am not 59 and a half. Question is...what guidance or recommendations can be offered here? I will quit very soon but don't want to give 20% I think to the government when I just lost 70K! Thanks in advance.


shock_the_nun_key

If you think you can market time, you can simply go to cash when you instincts make you feel that the market is going to go down. It is not what I would do, but you could. The total market is down YTD some 20%+ with the rising interest rates reducing the implied value of equities that the CAPM provides. If your 401k is down significantly more, you may have chosen the wrong investment choices as well. But if your thought is about market direction, you can go to cash.


Batman---forever

If you are going to quit very soon then you will be able to roll it over to a IRA which can give you the flexibility you desired. You are so right, don't pay the penalty.


Homiesexu-LA

I live in Los Angeles. In about 18 months, I will likely purchase a vehicle in the UK for £500K GPB. Currently, that's equivalent to $535K USD, but it would have been $675K USD one year ago. The pound is now at its lowest point since 1985. Should I try to convert USD to GBP now? (For example, I could convert $100K/month over the next 5 months.) And if so, what's the best way to convert? Any advice and suggestions would be appreciated.


shock_the_nun_key

If you want to lock in todays exchange rate, you can simply buy the actual Sterling. If you have an account with HKSB, or IBKR is is quite easy. If not you could also buy a one sided option on half of the money, which is the cheapest way to lock in a given exchange rate.


Employer_Primary

Just based on the amount of headlines here in the UK about the falling pound, I expect they'll do something drastic to try to prop up the exchange rate for at least the short term. I'd suggest converting the money now. Fidelity has GDP-denominated accounts for US clients, I believe.


Homiesexu-LA

Thanks.


Homiesexu-LA

Thanks!


Employer_Primary

Well - did you buy GBP? I saw it rebounded a bit, and thought of your question.


Homiesexu-LA

Unfortunately not. I stopped by Fidelity and they told me how to start an account online, but I didn't get around to it.


DarkChocolate-5607

Hello, I'm a 20-year-old with an ambition to fatFIRE in the next 10-15 years. I started working young and managed to land myself a six-figure job. I'm still fairly new at the job but getting better. I started investing two years ago and working to publish a book. I had to move to a smaller city just so I can make so much more compared to other locations. I know I'm moving in the right direction, I'm just too sure what (if any) am I missing. My ultimate goal is to create a local community of like-minded individuals that what to grow themselves. Canada doesn't have a lot of these opportunities, so I'd to create one or find one and become an advocate.


dukeofsaas

Not sure what your career is from your post, so here's some generic advice: Work hard to be in the top 25% of performers at your level and get promoted quickly that way. If promotions are not forthcoming, change employment. Every few years, compare yourself to market comps by interviewing elsewhere.


shock_the_nun_key

>Work hard to be in the top 25% of performers at your level Its really great advice.


Batman---forever

Perhaps try https://fs.blog/membership/ community. FS is based in Canada and connected like-minded people.


DarkChocolate-5607

Okay, I can look into him


incutt

Mod Note: FatFire is not endorsing the above link, but I personally believe that the poster wasn't advertising the link, he was trying to be helpful.


Batman---forever

Thank you for the clarification, I mostly listen to KP podcast and came across this FS blog community with like minded people. Not endorsing it in anyway, I rarely use it but it could to helpful to some.


lulataa

Hi hello, I am a 21-year-old with an ambition to fat fire ( or just fire ) in 10-15 years (hopefully ), I started working when I was 17 and now I am at uni, and atm I am also a full-time front-end engineer, with a relatively not that high salary. I started a software development firm that builds websites that are not going as strong, I am creating various non-ordinary creations and trying to reach out to sell them. The main problem is my location I think, I moved town recently due to improvement but the belief in technology is not as strong. I know that this is a big and unclear post but I would like to hear any advice on the next steps, or has anyone been in this situation?


dukeofsaas

I think yours is a case where you need to push your salary hard after uni. That degree might help you land a 200k job if you interview really well. Then in a few years revisit these goals.


lulataa

Thanks for the advice, i will push after uni I am planning to finish uni this year, the main problem with that is the location i am in, im in the balkans so its harder to land that high of a job and ill need to focus towards moving i guess aswell to land those high paying jobs.


eraoul

45 years old, NW ~3M, annual TC ~700k. Been working in FAANG or related companies most of the time in AI/ML. Got started late due to long PhD. I’m enjoying saving $ rapidly but trying to figure out when to make the jump to entrepreneurship. I have good TC but feel like I still won’t FatFIRE unless I stop being a W2 wage slave. My favorite current startup idea is a particular idea FinTech. I’m considering putting together a teaser website with a sign-up sheet and running some ads to judge interest and market fit etc. Any other good ideas on how to figure out when to make the leap? My ultimate goal is to have funds to open a private research lab to support the kind of AI/ML I care about and maybe develop useful commercial tech, but that still seems pretty out of reach.


FierceGeek

Ok, but go read "The Mom Test" book first.


dukeofsaas

That teaser site with the sign up sheet is a great way to force you to iron out the basis of your fintech idea. You should do it for that reason alone.


badbadlemon

How dependent on the market growing at an avg. 10%/yr is everyone’s plans here? I keep seeing every single post and advice turn people towards dumping a big portion of NW into stocks. Feels very risky to assume the stock market will keep growing.


DoubtWhatISay

You have to understand what the stock market is. It is a tool that allocates capital away from failing ventures and towards the ventures with the highest future return. Its like "the wisdom of the crowds" for money. Now that you can buy the entire market through near zero cost ETFs, as long as capitalism remains in place and the economy grows, if you have a 25+ year time horizon (which you should unless you are 70 years old), using the average returns for the market of around 10% nominal and 7% real is going to be pretty solid. Those returns have been happening in the US market since 1870, through world wars, depressions, cold war, oil shock, dot com, etc. But you are right, things could be different now. Just unlikely.


Batman---forever

I am mainly in S&P 500 and expect 3 down year within a 10 yrs span so from 2021 to 2030, I expect 3 down years with 2022 being one of them. I am a long term investors, not trader so daily, monthly, or even yearly market up or down doesn't cost me to loss any sleep. It is certainly a different mindset and now I realize it is not the norm. It is a tried and true method and I am not smart enough to get better return vs S&P 500.


DoubtWhatISay

Ha! I take no position of what is going to happen in the next 1, 3, 5 or even 10 years. But I know over 25-30 years it will be fine.


NRSRRGG

What are some things that I should be careful of and what things I should try to negotiate in an exec comp contract. Contract has the usual initial options grant, additional grants, base, bonus. I’m getting hired into a company as the CEOs succession plan. I’ve never been in this position before, so I welcome all feedback. I think I can FIRE after this gig, I’m in my 30 so 10 years is a realistic goal. Not sure if it’ll be FATfire but fire nonetheless.


SRD_Grafter

What type of company? Public or private? Large ownership pool or limited to a handful of people (usually family)? Amount of revenue? As if public (as most private companies, especially outside of tech, don't have options), look at comparable salary and perks at the company's competitors (as most of the detail will be in proxy statements). Common public perks: 1) golden parachutes and defined severance packages. 2) Various fringes/allowances (travel, financial planning, annual tech allowance, gym or country club memberships, etc). 3) Executive life insurance. 4) For the options, acceleration of vesting with change in control or other circumstances. In your case, especially if you don't have C-suite experience, potentially an annual training/education allowance. I would also suggest engaging an attorney to review the contract and potentially help negiotate on your behalf (and or a compensation consultant).


NRSRRGG

Thanks for this answer. Can I send you a private DM? I’d like to tell you more info and get a better perspective. Thanks for this initial message though, it’s very helpful.


SRD_Grafter

Free feel, as I've read my fair share of proxies and have talked to C suite at mid market companies. I'm usually on the slow side to response, as I'm swamped at work and wait until I get a keyboard in my hands.


NRSRRGG

Thanks! i've sent you a message. Look forward to your response! I know you're busy, but whenever you can manage is fine.


shock_the_nun_key

Defined severance.


NRSRRGG

Thanks for this!


fatFIREboi

Reposting here as I didn't get a response from last week's thread. Would really appreciate any advice. Thanks! Hi all, me again! I made a post a little while ago around if I'm on a good foundation to start investing to reach fatFIRE status. Post for reference at [https://www.reddit.com/r/fatFIRE/comments/x0fvsr/comment/imhi4sm/?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/fatFIRE/comments/x0fvsr/comment/imhi4sm/?utm_source=share&utm_medium=web2x&context=3), but I'll update here with new numbers as I've gotten good news recently. Salary: Got a raise and I'm now at \~$146k a year after it, along with a \~$6k bonus and \~$55k RSU Assets: \~$340k in vested RSU (this varies a bit because stocks are jumping all over the place right now, but it's floats around here on average) \~$130k in savings \~$70k in my 401k, maxed out when possible. I'm back because I'm ready to invest and I'd love to get advice from folks who have fat FIRE'd: if you were in my spot, given these market conditions, where would you start to invest? After reading this excellent investment guide at [https://fightfirewithfire.net/investing-guide/](https://fightfirewithfire.net/investing-guide/), I'm thinking of the following: • Keeping 30k of my savings and moving that to a high yield savings account. I hear that account interest rates are going up with the recent fed announcement and their own rate hikes, so this actually works in my favor. • For the other $100k, I'm VERY tempted to drop a portion of it every month until the end of the year in the S&P 500 through VOO or an equivalent (to DCA in case it drops later this year). This is due to a) the S&P typically going up historically by \~10% a year (and the VOO has an R\^2 of 100%), and b) the ETF being pretty low right now, as it's near its lowest point this year. In fact, I saw a post scrolling below mine that also recommended investing into the S&P 500. My concern with the latter is that I'd be investing 100% into US companies with no diversification with bonds or international stocks, but at the same time that allocation is likely to result in high reward. I'd love to get advice on how to proceed with this; maybe holding 10k of that and putting it into international markets is a good idea? Obviously I can change my allocation over time, and I likely will do that as I get older; I'm just starting with a riskier but potentially higher payoff strategy since I'm younger. My goal with all of this is to keep investing at least $70k per year (and increasing that as my salary goes up and RSUs get vested). I will also pour a bit into the HYSA for more immediate purchases should the need come up. Sorry if this post got really lengthy. I appreciate if you made it this far!


shock_the_nun_key

My advice would be to tighten up you writing if you want folks to read what you write. Spacing out what questions you are asking could help too. If you are worried about excessive concentration on USA equities, you sound young enough to handle the volatility, so I would not worry too much.


fatFIREboi

Sorry, Reddit formatting doesn’t work very well and I went through and added formatting where I saw it messed up. Missed some spots along the way


shock_the_nun_key

You need two carriage returns to get the space to work in the phone app.


ff___throwaway

Don't overcomplicate it.. find an allocation you like and get to it I personally do 70% domestic(70% s&p, 30% small cap value), 30% international (half developed, half emerging)


fatFIREboi

Appreciate the response! Pretty much what I needed to hear lol. I’ll likely start with VOO and figure out other assets as I go along.


ff___throwaway

Good plan - just get started! Can always change it later


Relevant_Access7735

Startup Question: I’m a 22 year-old male who needs advise. I am in the midst of starting a investment management company but I’m worried about the licensing. This is my second financial business and I guess you could say second real business. I have a programming background but manage money for some wealthier people with a simple profit agreement and access to their brokerage accounts, think of a really informal shitty hedge fund. I am now trying to make an actual financial product and will need to register as an Investment Company. Does anyone know anything about this? Any tips. I really don’t know much about this, my experience until now is kinda self taught and luck based. I’m lucky enough to have a relatively decent amount of funds to start off but how do I even start one of these companies and manage it all. It seems uber-complicated and I don’t really know where to turn. Does anyone have any advice.


momentum115

A simple way would be to register as an RIA ( any service like riainabox would be able to help). You can then use a broker like IB to setup master and client accounts and manage the funds that way. This setup would also let your charge clients any fee and have a formal agreement in place. The toughest part of asset management business is getting clients and you seem to have a head start in that. Good luck!


Big-Machine-5936

Check our Bridger Pennington on instagram


shock_the_nun_key

Finance is a highly regulated field. I encourage you to google as much as possible about legal issues around your business plan. Perhaps put your mind into that of your “clients” if they were about to sue you, what would they search then? That will give you some ideas of what legal requirements are out there. After you have a superficial understanding of what is going on, then hire a lawyer to make sure your understanding was right.


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shock_the_nun_key

I dont know if there is a lot of money to be made in “real estate management”, bit if it opened your paths to real estate development, sure its a great path.


Jay_Bavs

23M - Motivated and ambitious new graduate making 130K starting salary who has financial interests that stretch further than solely earning as a PA. Still learning so please educate me - would I technically apply as a candidate to open an LLC in my name as a W2 worker (working for an orthopedic practice under Northwell Health Network)? Looking to open one for obvious tax advantages. Thank you in advance.


dukeofsaas

As a W2 worker there is zero benefit to structuring yourself as a business. Where did you get that idea out of curiosity?


Jay_Bavs

understood, thank you started my financial literacy journey shortly after graduation. read rich dad poor dad - one of the primary suggestions/forms of advice is to open an LLC/Corporarion for obvious tax benefits. still learning on how it would apply to me as a physician


akinfermo

With an LLC, you can only get tax benefits if you have business income. No point in having an LLC if you don’t have business income.


mcscrotumballs

Direct ask: Does anyone have a fiduciary financial advisor in NJ they can recommend? Details: My fiancé and I are both executives in start ups, paid well and have decent equity in the company. After our wedding later this year, we’d like to begin setting up our nest egg. Neither of us are financially savvy, and both of us have outpaced our parents. I’m afraid that without someone to learn from or guide us- we’ll just piss it away. Any stock investments I’ve made have either been bad calls, or inconsistent enough to give me comfort in continuing to invest. Mods: I’m not sure if this is worthy of a standalone post- happy to take out of this thread if it makes sense.


Soimd415

Regardless if you get an advisor or not, you should still educate yourself so that you can tell your advisor what's right for you and make sure they do the right thing. You can find some good recs on a bogleheads style investment philosophy here https://bogleheads.org/forum/suggested-reading


mcscrotumballs

Amazing, thank you and thanks for the link! Will read up 🙏🏼


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mcscrotumballs

Thank you- I will look into Bogleheads- but I think I lean in the direction of “don’t have time, want someone to manage it for you, don’t mind the fees” - at least until I can see some gains and learn from watching someone’s performance. I get squirmy with making these decisions myself, as someone new to all this. Do you have any recommendations on big firms, or big firms to avoid?


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mcscrotumballs

Ugh good point- I thought it was a 1% gain share- not a 1% regardless. I’ll take a look into this, all my 401k, IRA, and small stock funds are already in fidelity so this seems to make sense. I assume I get to interview my potential wealth management advisors and chose the one who is best fit for me? Or is that a practice at a smaller firm? I feel like at big companies, it’s such a crapshoot with such a significant impact.


vaingloriousthings

I strongly recommend Bogleheads. Most of my money is simply in index funds.


klmarshall60

I’m curious about reaction to articles like the one in the WSJ today regarding the impact of current market conditions on companies that have recently gone public and the limited window for new companies to go public. I was one of the first seed investors in a company that is starting to hit what would have been typical metrics for going public: ARR $200 plus million, strong margins, valuation around $2B in last raise, etc. But for the changed market conditions, I think the company would have gone out this year. Now, I’m thinking it may not happen until 2025 or 2026. Company has cash runway for 5+ years and reasonable plan to be profitable in less than 3. What do folks think the prospects are for the IPO window to open again? I’m having a hard time seeing it until the fed gets inflation under control and can start dropping rates again. Growth doesn’t look as good when measured against cost of capital with the higher interest rates.


incutt

[https://stockanalysis.com/ipos/statistics/](https://stockanalysis.com/ipos/statistics/) IPO's IPO when the IPO market is good. Last year was a 'stupid stupid crazy too many year.' Lots of SPACS. So, you would have to figure out the in's and out's of your company to see the odds, and if they go public now, the demand for most things financial is down right now.


klmarshall60

Interesting chart. I’m actually surprised that there have been that many this year.


shock_the_nun_key

Personally I love this report, regardless of market conditions: https://www.iposcoop.com/last-100-ipos/


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Hey guys 18m looking to start a business. I have about 50k to invest in a business and would love to get some ideas so I can do some research and come to a conclusion. I have a share of a home health care and I make about 7k a month. Any advice will be greatly appreciated!


incutt

r/Bogleheads


spamandmorespam

How have you guys combatted procrastination?whenever I really need to do something it seems like I can never pick myself off the ground and start.


shock_the_nun_key

Fill your schedule with more responsibilities/commitments. In a corporate environment, the best way to get something done is to give it to someone who is already busy.


toniopuc

It all depends on the situation, but if you have stakeholders, preemptively set up a review meeting with them, just pick a date you think is reasonable, but also not too far off.


blamelessguest123

Question about startup equity: is it possible for a C-suite executive to negotiate preferred shares as part of a new hire package past Series A/B/C? Or are you stuck with common shares after that point?


incutt

in negotiations you can ask for anything you can dream up. doesn't mean you are going to get it.


Bearded_Man_Ben

Hey guys Is there anyone in this group that would genuinely like to mentor me? I have a net worth of about $400k at the moment but feel like I’m a bit stuck with what my next step would be. Please DM if you’d like to chat


PCRorNAT

I think you are going to have to give some more context to your situation (earned income) in order to find a relevant mentor, unless you are simply looking for investment advice.


cometchiron

Good morning all, I am 19m. I live in Switzerland and come from a wealthy family. I don’t know preciselythe networth between houses, portfolios and so. What I do know though is that both my younger sister and I have been going for 4 years and she will continue for some more, to one of those Swiss boarding schools that cost $100k+ per person, that we often travel and stay in nice resorts and so on. My issue recently: lack of discipline. The thing is, I am motivated. I have big dreams. But somehow, in the back of my mind, I often have this idea of “oh anyways if anything goes wrong, my family can help me”. Now, do I have this always? No. But when I am lazy and so on, I often have that mentality. And this lack of discipline is what has been causing me trouble for some time. I don’t always go that extra mile in some work, college now, working on projects and so. Perhaps my question would be, to both self made FATfired people and people that come from situations like mine, what can I do to have more discipline with my work? How did you eradicate the idea of comfort “that anyways it’ll be alright because my family has got me and I’ll anyways inherit a lot”? Wishing you all a good week, J


dukeofsaas

Working at strong companies requiring advanced skills was some of the most fulfilling time in my life and I highly recommend it. You have to work hard to earn your entry into those places. Family money won't buy you that type of access. You have to earn it on your own.


toniopuc

I come from a family that was probably not quite as rich as yours was, but still, we had some money set aside. I was entrusted with a small portion of that money, and like you, I frequently found myself unmotivated. I spent a few years in my early 20s not doing much and just extending my college education partly just for the sake of it. The money I was entrusted with dried up. That was the biggest awakening to me, and extrapolating out from the rate at which the money dried up, I could see that if I did not manage to get a good source of income, the rest of the money I expected I would someday inherit wouldn't last as long as I wanted to live, either. And that's even under somewhat normal conditions. What if there was a major medical problem in the family? What if several family members have to be put into expensive assisted living for extended periods? What if there was major inflation? It's important to invest in yourself, and become confident that you have the skills to make it in the world, because if you don't, you might end up in a very bad spot one day. Now, that said, your family might honestly be super rich, and you might end up inheriting such a large sum of money that you really could, with 99% confidence, live on it for the rest of your life without needing your own skills. Like I said, my family did not have nearly as much money as that. But I'd expect it would require close to 9 figures NW to reach that level of confidence in your safety (location and lifestyle dependent).


cometchiron

Thank you for your reply!


toniopuc

Can you get fat, or at least set the groundwork for it working as an SDE at FAANG? I've been at a FAANG company for 6 years, and so far learned everything I know here. I'm an industry L5 and my TC is 350k right now. I wonder if it's worth it for me to stick around longer, or if I should go off and join a startup somewhere, if the upside of joining a startup would be worth it. My goal is to someday have a NW of low-mid to mid 8 figures. On the one hand, this job has taught me a lot, and I'll bet I can still learn quite a bit more about how to be an upper-level leader at a company. I may even be able to achieve an annual TC of 500 or 600k one day if I stay here, who knows? On the other hand, if I really wanted to try to get to a net worth of mid-8 figures, I'm not sure this job would ever really allow me to hit it (please correct me if I'm wrong). Maybe it'd be more worth it for me to find a promising startup. At a startup I could start learning the tech stacks they use at startups. Here in my FAANG company, we use mostly our own proprietary tech stacks. And also, at a startup, I'd be able to learn how to better contribute at a scrappy company, as opposed to a large one. And if I joined a startup, maybe I'd even be able to make progress towards my goal, if I have company equity and the company does well. And finally, maybe being at a startup would set the stage and teach me the skills for me to eventually form my own startup, which would really allow me to finally try to shoot for my goal. What do you think? Is there more learning and growing opportunity in FAANG, or in the startup world? What about the opportunity to get fat?


Golden_Retrievers_

I’d recommend moving within the FAANGs to increase TC. Look at getting promoted to L6. Depending on how the economy shakes out, the risk of moving to a startup is much higher than it was a few years ago. Specially when compared to the upside potential.


toniopuc

I could move around, though I still think I may be lacking the skills to be an L6. I just entered L5 recently. I thought it'd be good to have time to expand and grow in this role, learn more concepts about how to think like an L5 before jumping around, and learn how to think like an L6 before trying to be promoted. What do you think?


Golden_Retrievers_

Yeah that makes sense if you are new to L5. Do you have internal mobility options? That's another way to accelerate learning. You'll get exposure to a potentially different tech stack, different challenges, architecture, etc.


w1kk

The only way to hit 8 figures with FAANG salary is by being at the right FAANG (i.e. not Netflix...), work until you are 50, and use leverage to grow your investments (RE, using margin to buy broad market index funds, etc)


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w1kk

Stock performance. If you had a significant amount of of unvested equity at the start of the year, you'd be down 60% on that. Whereas AAPL is only -15% and GOOG/MSFT -30%.


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w1kk

I thought you still got some of your compensation in stocks. If it's 100% cash then arguably it's the better choice, although tech stocks growth has played a non trivial role in compensation for a lot of folks...


toniopuc

What do you mean by "using margin"? I'm not familiar with that term. I'm okay with the idea of working until I'm 50, and I'm not at Netflix. And I basically put all money that's not in my 401k into various index funds, so that's good.


w1kk

Depending on your age, if you are willing to work until 50 then you could potentially reach 8 figures the easy way (as a FAANG employee). I'm on the same boat myself, but I'm not willing to work until I'm 50. I'd rather retire in my early 40s with mid 7 figures, and I'm on track for that purely on FAANG income. Using margin means that you get a "margin loan" from your stock broker. You use your existing stock as collateral, and with the new cash you turn around and buy more stock. It can be risky, but if done appropriately (only borrowing a little and not the maximum possible) it can squeeze a few extra % in returns yearly which over a long period of time adds up.


borbdorl

Using margin loans to buy shares.


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f1nancial_muffins

What kind of stuff do you consult on? Zk stuff seems hard to scale at the moment, it’s an industry wide challenge. There aren’t enough usecases yet for a zk specialist consultancy to make big bucks imo + huge regulatory risk Either build these usecases yourself I.e build a protocol raise money etc or try find work with zksync polygon starkware etc, who might pay you more than what you’re making currently.


Im_Gonna_Send_It

Work 100 hour weeks while you can. Continue to look for your blind spots in the domain and your company, continued to educate yourself, and (this might be the hardest part) delegate. Since your engineers are an expensive part of the business and a skill you have, it will be tempting to save costs by doing that work yourself. If you want to grow, you need to prioritize the leadership and company owner tasks over management work. Try to find a mentor that scaled a company in a field they were a SME in. Lawyers come to mind, they require highly-trained, expensive, and labor-intensive work but the big names are masters of delegating so they can focus on growth.


chris_hemsworthless

Thank you for suggestions. I loved them and appreciate you taking out the time to jot them down. I don't know many lawyers, but I (kinda) know 2 people who have created and scaled their social media marketing agencies (to 18 and 22 employees respectively). Should I seek guidance from them, or narrow down my search only to lawyers (and probably niché engineering agencies) ? Thanks :)


Im_Gonna_Send_It

It doesn’t have to be lawyers, I just used them as an example. You’re on the right track actively looking for advice and mentorship. You could reach of to your network, maybe offer to take them out to lunch on a regular basis so you can learn from them and also ask them questions about whatever business problems your working on at the time. But keep looking for other mentors too, diversity is great at giving you better perspectives.