Eureka! What it’s about: Here’s the journey we’ve created for employees. We’ve broken it all down in the simplest terms, in the most convenient definitions. We give you everything you need to learn the basics, know what your equity compensation is worth, and create a plan for when you’re ready to cash in your shares. Why it’s important: Receiving stock from the company you work for can be a source of significant wealth and fast-track your financial goals. However, we’ve also felt the pain of trying to figure it all out and realized it doesn’t need to be complicated. So, we’re building a better way and sharing it with you. Key takeaway: You can do this. We’re just here to help.
Here is a quick rundown and a handful of lessons to try out so you know what to expect.
1 Learn the lingo 7 lessons
Some companies pay employees with stock in addition to cash, but they don’t usually do a good job of explaining what that means, what they’re giving you, or what you’re supposed to do with it. First, we’ll break down the basic concepts and get comfortable with the keywords.
Becoming an investor Squirrels are investors. Are we investors? Get the app https://app.getmedes.com/signup Commonly used words Let's step through some commonly used words in the world of investing. Get the app https://app.getmedes.com/signup Equity compensation
Don’t miss out, discover the value of equity compensation and how it can be life-changing.
https://app.getmedes.com/lessons/equity-compensation Types of equity comp
Learn the different types of equity compensation, like options and restricted stock, so you know what your company is offering you.
https://app.getmedes.com/lessons/types-of-equity-comp Opportunity cost We experience regret. How can Robert Frost help us make better financial decisions? Get the app https://app.getmedes.com/signup Net worth Nicolas Cage is an award-winning Hollywood actor. What are some financial decisions that cause the biggest stars to fall? Get the app https://app.getmedes.com/signup Consider risk The future is filled with uncertainty. How should we think about risk when investing? Get the app https://app.getmedes.com/signup 2 The value of ownership 10 lessons
Once you have the basics covered, we’ll help you dive into the specifics of what your company is offering you, how it works, and how you can make money from them. Understanding what you’ve been granted, whether it’s options or restricted stock, helps you know what to do with your shares and what they’re worth.
Understanding an option grant
Know the ins and outs of your option grant, including the key pieces of information you should look for.
https://app.getmedes.com/lessons/understanding-an-option-grant Incentive stock options We received incentive stock options as part of our equity compensation. What are they? Get the app https://app.getmedes.com/signup Incentive stock options: The basics & taxes This video aims to give a visual breakdown of how ISOs work and how they are taxed in a couple of scenarios. Get the app https://app.getmedes.com/signup Non-qualified stock options We have non-qualified stock options, but what are they? Get the app https://app.getmedes.com/signup The $100K rule for ISOs ISOs have tax benefits that NSOs don't. Is there a limit that I should be aware of? Get the app https://app.getmedes.com/signup Qualified Small Business Stock I am an early employee at a startup. What do I need to know to save up to $10 million in future taxes? Get the app https://app.getmedes.com/signup Employee Stock Purchase Plans
Learn what you need to know when your company allows you to purchase stock at a discount.
https://app.getmedes.com/lessons/employee-stock-purchase-plans Employee Stock Purchase Plans: The Basics & Taxes Many public companies offer a qualified Section 423 Employee Stock Purchase Plan (ESPP) as a benefit to their employees. This video simplifies everything you need to know about your ESPP. Get the app https://app.getmedes.com/signup Creating a long call payoff diagram We'll show you how to make a quick payoff diagram for your call options in less than 5 minutes. Get the app https://app.getmedes.com/signup Getting to know stocks What are stocks and why do investors buy or sell them? Get the app https://app.getmedes.com/signup 3 Create a plan 10 lessons
Next, it’s time to put a plan in place so your hard work pays off. Taxes can make or break a big payday. You’ll use the details of your equity compensation to reap the benefits of your company stock and avoid overpaying taxes.
Exercising our right to buy shares
Dive into exercising your stock options, considering the costs and the risks.
https://app.getmedes.com/lessons/exercising-our-right-to-buy-shares Alternative Minimum Tax What is alternative minimum tax and how does it affect us? Get the app https://app.getmedes.com/signup Incentive Stock Options: Alternative Minimum Tax Explained! If you have Incentive Stock Options (ISOs), then you also have to think about the Alternative Minimum Tax (AMT). Otherwise, you may be in for a surprise when you file your taxes! Get the app https://app.getmedes.com/signup Exercising early I understand an option is an agreement that allows me to buy shares in the company. Should I ever buy shares early? Get the app https://app.getmedes.com/signup Taking steps to early exercise I now understand the importance and the benefits of early exercising. How do I put together a plan to do so? Get the app https://app.getmedes.com/signup NSO exercise and sales tax We want to exercise and sell our non-qualified stock options. What should we expect for taxes? Get the app https://app.getmedes.com/signup ISO exercise and sales tax We're thinking about exercising and selling our ISOs. What should we expect around taxes? Get the app https://app.getmedes.com/signup Qualifying for QSBS QSBS allows us to avoid paying taxes, but how do we know if we qualify? Get the app https://app.getmedes.com/signup Tax documents Investment income is taxable income. What should we expect at the end of every year? Get the app https://app.getmedes.com/signup Managing liquidity I am ready to start investing. Do I dive right in with all my money or dip my toes in the water first? Get the app https://app.getmedes.com/signup 4 Selling shares 7 lessons
One day, you’ll throw a big party because your equity will be worth a truckload of cash thanks to your company’s success...we’re keeping our fingers crossed for you. That said, you’ll eventually have to sell your shares to turn them into cash for your bank account. Understanding how and when you can sell your shares allows you to execute the plan you’ve created.
RSU tax strategies I am at a late-stage startup or my company has already gone public. What are some ways I can save on taxes? Get the app https://app.getmedes.com/signup Restricted Stock Units: The Basics & Taxes See an example of how RSUs work and a couple of things to think about when deciding what to do with them. Get the app https://app.getmedes.com/signup RSA tax strategies Timing is everything. What can an arcade game teach us about tax strategies at a very early-stage startup? Get the app https://app.getmedes.com/signup Selling our shares pre-IPO My company is doing well and is planning to raise another round of financing. Do I need to wait for an IPO to sell? Get the app https://app.getmedes.com/signup Our company is going public
Find out what it means when your company goes public and the different ways it can happen.
https://app.getmedes.com/lessons/our-company-is-going-public My Company is Going Public: What Happens to My RSUs? When you work at a private company, and they announce that they will IPO, it can be an exciting time. It's especially true if you also have stock compensation in the form of Restricted Stock Units or RSUs. Get the app https://app.getmedes.com/signup Capital gains taxes We are expected to pay taxes when we make money. What does that mean when we make money from investing? Get the app https://app.getmedes.com/signup Get started! Personalized learning guides 170+ free interactive lessons Hours of fun gameplay Helpful product recommendations Download the app https://app.getmedes.com/signup What people are saying "The most comprehensive finance app on the Google Play market. The Archimedes app is not only an app, but a financial advisor that can be the novice investor’s most valuable tool. Try the app, it’s worth it." Brandon K
"Great app. Lots of learning material ranging from stock options to crypto - all in an accessible format with great user interface. Highly recommend for someone new to investing." richpianao