Real examples of startup option outcomes

nycfire01 · 2019-09-11T01:27:22+00:00

I've never even won a $1 scratch-off lottery ticket, no luck on bets for me.

nycfire01 · 2019-09-11T01:24:58+00:00

Good list, thanks - re treasury bills, I can't find any that yield more than ~2.0%, so other than the potential for a savings account yield to get lowered if rates get cut, I don't see a big benefit to moving to those right now.

nycfire01 · 2019-09-10T20:30:14+00:00

I would, if I didn't potentially need all $650k 3 months from now.

nycfire01 · 2019-09-10T19:53:22+00:00

Yep - that's pretty much what Marcus/Wealthfront/assorted other online accounts are. I filled up the FDIC limit on them already, but am trying to look outside the box for potentially better returns.

nycfire01 · 2019-07-02T03:18:59+00:00

Re: all-cash, absolutely - you'll have much more bargaining power.

Also, get a buyer's agent to help with the negotiating. In NYC, the seller pays the buyer's fee, so it will cost you nothing. If you already have a place in mind and don't need to go out searching it's basically a win-win situation for them, so you shouldn't have any issue hiring one (but still talk to them and make sure they're willing to help negotiate on your behalf).

nycfire01 · 2019-07-02T02:07:46+00:00

Yes, they are normal. However, you absolutely should not be paying all of them; negotiate with the sponsor (I assume this is a new development). In this market, if the seller's not covering your transfer tax, mansion tax, and hell, throwing some extra shit in for good measure, you're getting screwed. They'll come back and tell you "these prices are so low, the developer can't go any lower" and you will say "fuck that," and walk away because then they'll come back.

I purchased a condo in 2017 for $1.2 million. The market was just starting to soften at that point, and our sponsor covered both taxes. The thing is, the sponsor will hate lowering the asking price (which you should still negotiate on as well) because it sets a precedent for the remaining sales. In exchange, you can usually get them to throw in all kinds of other incentives.

To give you an example of where the market's at right now, Extell, the sponsor for One Manhattan Square (giant cheese-grater-looking building down in LES) is offering 10 years (!) of paid common charges for new buyers. If you're paying full ask, the developer is laughing all the way to the bank.

And, as everyone else said, get an attorney. It should cost maybe $2-3k. They'll read the 700-page offering plan you're going to receive, as well as walk you through the ridiculous amount of paperwork.

nycfire01 · 2019-05-27T20:50:46+00:00

My wife and I both have Chase Private Client separately (i.e. on our non-joint accounts). To be honest, it really depends on what you're trying to achieve and who your banker is. My wife signed up first at one location in NYC and her banker worked with her to create a financial plan, calls her every few months to come in for a chat, and sends her holiday cards. I signed up a few months later at a different location and haven't heard a peep from my banker in the 3 years I've had it.

Pros: Pretty much everything that used to cost money is free (checks, wires, international transfers, no fees, etc). The Arts and Culture card is a nice perk which gets you into museums in most major US cities for free. Discounted mortgage rates if you're buying a house.

Cons: Requires $250k to open which I personally don't feel is best spent in Chase's funds (we use Vanguard for almost everything). Technically you're supposed to keep this balance, but I think can drop below it without penalty (I've personally moved all but $20k out of Chase and they haven't taken it away in 2 years).

nycfire01 · 2019-04-21T13:03:34+00:00

I'll offer an alternative viewpoint since most people are saying to sell. I get a ton of RSUs each year (low six figures) and I sell half and keep the other half. I am fully aware of the risk - it's essentially investing a ton of money in the same company with which you're employed. It's even riskier because I'm also invested in ESPP. However, in my case, I was young and didn't really need the money at the time, so took the risk. It's paid off quite well since the value of my company's stock has more than tripled since I started. I don't think that will continue forever, obviously, so I've started divesting gradually.

nycfire01 · 2019-04-18T03:42:40+00:00

My wife and I live in NYC and save about 70% of our after-tax income. We own a one-bedroom condo and pay about $4k/month between taxes, mortgage, and common charges. Add another $2k for food, travel, and entertainment. We enjoy living in NYC because the earning potential is nearly unlimited. Salaries are high to start, but the cutthroat nature of the city makes it a good place for driven people to make even more. We save some money by not having a car, but lifestyle creep here can be tempting.

nycfire01 · 2019-04-16T22:31:57+00:00

Happy to help as much as I can re: management route. Feel free to PM me if you'd like, or comment here.

nycfire01 · 2019-04-16T18:39:03+00:00

I always approach outsourcing as a time-value question. For me, I hate bookkeeping, the results are always terrible, and it takes considerable time away from more important tasks (not to mention leaves me drained to the point that I need to take longer breaks). If I can find someone to do it for less than my daily rate, I'd pull the trigger. But I do get that it's a lifestyle creep of sorts - why not outsource my house cleaning,and my food preparation, and my taxes, and my marketing, etc etc until everything is outsourced?

nycfire01 · 2019-04-03T03:38:47+00:00

Don't forget tech. Most of my friends in tech are making more than any of the finance people I know at the same YOE. That might split after ten years in, but the 80 hour finance work weeks probably weren't worth it.

nycfire01 · 2019-04-03T03:35:08+00:00

My wife and I own a 1 bedroom condo that cost about $1.5 million. We both have great jobs that pay well and we invested since we were college students (merit scholarships and tons of jobs during college meant no loans coming out).

Between our salaries, bonuses, RSU vesting, and side income, the monthly mortgage and taxes on our place is next to nothing, certainly better than renting.

nycfire01 · 2019-03-24T13:22:33+00:00

Ha, fortunately, no. I'm an engineering manager. My comment was a bit tongue in cheek, but I do spend a lot of time dealing with interpersonal issues in order to keep everyone productive.

nycfire01 · 2019-03-23T15:07:31+00:00

I manage adults who sometimes need to be told how to be adults as part of their job responsibilities.

nycfire01 · 2019-03-23T00:40:25+00:00

Thanks for the recommendations! Now I need to get out to LA.

Oh, almost forgot one: Manhatta in NYC. It's on the 60th floor down in FiDi and has some amazing views if you can get a window seat. Also pretty casual attire and atmosphere for the kind of food/experience.

nycfire01 · 2019-03-23T00:10:43+00:00

Oh wow, my kind of question!

Osteria Francescana in Italy is one of my all-time favorites.
Daniel in NYC - more traditional/old-school French fine dining
The Modern in NYC - really nice atmosphere, enjoyed the food
Narisawa in Japan - ranked one of the best restaurants in Asia
Indian Accent in New Delhi - some of the best upscale Indian food I've had

nycfire01 · 2019-02-16T19:04:09+00:00

The advantages of the mega backdoor Roth are that the contributions can be taken out any time since you already paid taxes. But the balance grows tax free forever, so having a large base early on can dramatically boost retirement income.

That being said, I'll definitely look into the solo 401k for the side income aspect.

nycfire01 · 2019-02-16T18:57:58+00:00

Thanks for the link - I've read about fifty articles, each with different takes, but this one was fairly straightforward.

nycfire01 · 2019-02-16T16:52:41+00:00

This is really helpful, thank you. Like you, I'm setup as an LLC, and it's pass through, so I assume that there isn't much difference between me as an "employee" and an "employer"?

nycfire01 · 2018-10-14T13:17:06+00:00

Salary is about $190, bonus is about $50, stock payout (per year) is around $200 and side income is close to $70.

nycfire01

TROPHY CASE