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DancingBurrito
DancingBurrito
25mo
by
Stealth

Best practises to manage incoming cash via ESOPs ?

One of my past companies is expected to go public soon and I'll be receive a bulk of money in esops, what are some of the best practises to be noted to manage the quantum ?

25mo ago
DerpyPancake
DerpyPancake
VMware
25mo

If you want to save taxes on long-term capital gain, You can buy residential property.

PrancingDumpling
PrancingDumpling
Stealth
25mo

This is provided you exercised the option by paying for the stock and held it atleast 1 year before the IPO. Otherwise it's short term capital gain.

DancingBurrito
DancingBurrito
Stealth
25mo

@BusyBeanie68 Yet to exercise, plan is to sell 50% upon IPO and save 50% for long term.

PerkyNoodle
PerkyNoodle
Gojek
25mo

Following. Quick question: How many years did you work there and are you allowed to hold the vested stocks even after leaving the company?

DancingBurrito
DancingBurrito
Stealth
25mo

@MrRobot1992 I worked for 6 years. Yes, vested stock stays.

GoofyMuffin
GoofyMuffin
Student
25mo

Around how much money will you make?

DancingBurrito
DancingBurrito
Stealth
25mo

Probably the biggest check in life

GoofyMuffin
GoofyMuffin
Student
25mo

It goes unsaid, want to know the amount

GroovyWalrus
GroovyWalrus
Meesho
25mo

If you worked for 6 years then, you vested all your initial stock + refreshers.

Man you won at the startup game

DancingBurrito
DancingBurrito
Stealth
25mo

Oh, din’t know it was the case back in the day

SnoozyRaccoon
SnoozyRaccoon
Swiggy
25mo

Once ESOPS converted to cash its better to divest. Just buy 50% index, 20% into debt such as FD and 20% to gold. 10% spend it on something youve wanted for a long time. If you’re into investing then can research and do stock investments

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