Secfi

Calling all Wiz employees ?? With Google’s proposed acquisition of Wiz, you’re approaching a major financial milestone—one that could have big implications for your equity. Whether you hold stock options, RSUs, or shares, now is the time to understand how this event may impact your taxes, liquidity options, and long-term financial goals. We’re hosting a live session exclusively for Wiz equity holders to walk through: ?? What an acquisition means for your equity ?? What decisions you might need to make soon ?? How to prepare for what’s next Your equity could represent a life-changing amount of money—let’s make sure you’re ready. ?? Register now to join us live. ?? And feel free to send any questions in advance to: [email protected]

???????? ?????? ?????? ?????? ???????????????????????? ???????? ???????? ?????????????? ???????? ????????????????? An acquisition can be an exciting milestone—and for many startup employees, it could mean a life-changing liquidity event. But how that deal is structured can make a big difference when it comes to taxes. There are typically three types of acquisition structures: all cash, all stock, or a mix of cash and stock. Here’s a quick breakdown of how each impacts your tax situation: ?? ?????? ???????? ???Straightforward and taxable. ???Capital gains tax applies based on the difference between your sale price and cost basis. (Note: vested, but unexercised stock options may have different tax implications, so it’s important to check your company documents to confirm.) ???Short-term vs. long-term gains depend on how long you’ve held the shares—less than a year means higher tax rates. ?? ?????? ?????????? ???More complex, but can offer tax deferral. ???If the deal qualifies under Section 368, you might be able to defer taxes until you sell the new shares. ???If it doesn’t qualify, it may be taxed immediately like a cash sale. ???Future sales of the acquired stock will be taxed based on the original cost basis. ??+?? ?????????????????????? ???? ???????? ?????? ?????????? You’ll likely owe taxes on the cash portion now, and the stock portion could be deferred—depending on the structure. If your company is preparing for an acquisition—or has recently gone through one—it’s worth taking the time to understand what kind of deal it is and what it could mean for your equity and taxes. ?? Has your company recently been acquired? Or are you navigating one now? Drop your thoughts or questions in the comments. ???????? ???? ?????????????? ?????? ??????????????????????. ???????????? ?????????????? ?? ?????? ?????????????? ?????????????????? ???????? ???????????????? ??????????????????.

???????????? ?????? ???? ?? ???????????????? ???????????????? ???????? ???????? ????????? If your company has a tender offer, you may have the opportunity to do a cashless exercise with your Incentive Stock Options (ISOs). It can be a great way to get liquidity—but it’s important to understand the tax implications before making a decision. ?? ???????? ???? ?? ???????????????? ????????????????? A cashless exercise means you’re selling vested, unexercised ISOs as part of the tender offer. ?????? ????????’?? ?????? ??????????... From a tax perspective, your ISOs become a disqualifying disposition, which means they lose their ISO status and are treated as Non-Qualified Stock Options (NSOs). ?? ???????? ???? ?????????? ?????? ???? ???????? ???????????????? ?????????? ?????????????????? Some companies state that if you do a cashless exercise, your entire ISO grant (including any unexercised or unvested options) may also be reclassified as NSOs. ?? ?????? ???? ?????????????? This change could lead to a very different tax outcome. ???ISOs = AMT adjustment ???NSOs = taxed as ordinary income Depending on your personal situation, that tax difference could be significant. That’s why it’s so important to carefully read your Purchase Offer Agreement and understand your company’s rules. Need help understanding your Purchase Offer Agreement or how this might apply to you? Secfi Wealth is here to help: https://lnkd.in/eth2dE_3 ?? Are you considering a cashless exercise? Drop your thoughts or questions in the comments. ???????? ???? ?????????????? ?????? ??????????????????????. ???????????? ?????????????? ?? ?????? ?????????????? ?????????????????? ???????? ???????????????? ??????????????????.

Gusto ???? ????????????????. ?????? ???????? ?????????? ?????????????? ??????????? With 400,000 SMB clients and a strong market position, Gusto is making waves. IPO speculation is growing, and if things move quickly, your stock options strategy should already be in place. ?? ?????? ?????????????? ???????? ?????? ??????????: ? Gusto’s 409A valuation has been rising. ? If the IPO price matches the last round ($30.40/share), waiting to exercise could mean paying twice the taxes. ? Exercising now could save employees potentially life-changing money in taxes. We recently ran the numbers on what early exercise could mean for Gusto employees. See the impact here: https://lnkd.in/e-pJ-Qhj With Secfi, you can exercise your options today—?????????????? ?????????? ???? ???????????????? ????????. The best time to plan for an IPO is before it happens, so let's talk. Submit a request: https://lnkd.in/eAPmV7_R

???????????? ?????? ???????????????????? ???? ???????? ???????????????????? ???????????????? ???? ?????? ???????? ???? ???????????? ???????????????? Retirement accounts like 401(k)s, IRAs, and Roth IRAs offer tax advantages that help your money grow, but what if you want to retire before 59.5? Early withdrawals usually come with a 10% penalty, but there are ways to access your funds penalty-free if you plan ahead. ?? ???????? ???????? ???? ???????????? ???????????????????? ?????????? ??????????: 1?? The Rule of 55 (for 401(k) and 403(b) plans): If you leave your job at age 55 or later, you can withdraw from your 401(k) without penalty (though you’ll still owe income tax). 2?? Substantially Equal Periodic Payments (SEPP): Also called 72(t) distributions, this strategy lets you take equal payments from your retirement accounts penalty-free. But once you start, you must continue withdrawals for at least five years or until 59.5, whichever is longer. If you modify the payments early, you’ll face penalties. 3?? Roth IRA Contributions (Not Earnings): You can withdraw your Roth IRA contributions (but not earnings) at any time without penalty or taxes. However, withdrawing earnings before 59.5 may trigger taxes and penalties. 4?? The Roth Conversion Ladder: By converting traditional IRA/401(k) funds into a Roth IRA, you can withdraw the converted amounts penalty-free after 5 years. This allows you to gradually access funds while keeping tax benefits. ?? Key takeaway Planning for early retirement means understanding which accounts to contribute to now and how to access your funds later. Each strategy has rules and tax implications, so it’s important to consider what works best for your situation. Are you planning to retire early? Have you considered using one of these strategies? Drop your thoughts in the comments. ???????? ???? ?????????????? ?????? ??????????????????????. ???????????? ?????????????? ???????? ?????? ?????????????? ?????????????????? ???????? ???????????????? ??????????????????.

???????? ???? ???????? ?????????? ??????????'?? ???? ???? ??????????????? ???? ?? ?????? ???????? ?????????? ?????????? ??????? 529 plans are a popular way to save for education, offering after-tax contributions, tax-free growth, and tax-free withdrawals for qualified expenses. But what happens if your child decides to skip college? The concern is valid: non-education withdrawals incur a 10% penalty. But that doesn’t necessarily mean a 529 plan isn’t worth it. In fact, recent changes have made them more flexible than ever. ?? ?????????????? ???? ???????????????? ?????????????? ?? ?????? ????????: ?? More time = more tax-free growth – The younger your child is, the more powerful compound growth becomes. ?? State tax benefits – Many states offer tax incentives for 529 contributions (rules vary, so check your state’s policy). ?? New rollover options – Unused 529 funds can now be transferred to a Roth IRA (up to a $35K lifetime limit per beneficiary). ?? Flexibility for families – You can change the beneficiary to another child or even pass the funds to future generations. ?? ?????? ???? ???????????????? ?????? ?????????????? ???????????? Since overfunding could limit flexibility, some families choose to partially fund a 529 (e.g., 50–75% of expected costs) while saving the rest in a taxable investment account for more flexibility. ?? ???????????????? ?????????? ?? ?????? ????????? Are you currently saving in one? Considering one for your child? Drop your thoughts or questions in the comments.?? ???????? ???? ?????????????? ?????? ??????????????????????. ???????????? ?????????????? ?? ?????? ?????????????? ?????????????????? ???????? ???????????????? ??????????????????.

???????? ?????? ?????? ?????????????? ?????? ?????????????? ???????? ?????????? ?????????????? (???? ?????? ??????'?? ???????? ?????? ????????)????? Exercising stock options can come with a significant upfront cost, and not everyone has the cash on hand to cover it. The good news? There are alternative ways to fund an exercise without using your own savings. ??? ?? ??. ????????-????-?????????? (???????????????? ????????????????) How it works: You exercise your options and sell a portion of your shares immediately (via a ???????????? ?????????? or ?????? ?????????????????? ????????????) to cover the cost. ? Pros: No upfront cash needed. Often facilitated by a broker or administrator. ? Cons: You give up some potential upside by selling shares early, and you may owe taxes at the time of sale. ?? ??. ?????????????????????? ???????? How it works: You take out a loan (e.g., a margin loan, HELOC) to cover the cost of exercising your stock options. ? Pros: No need to liquidate other investments or use personal cash. ? Cons: Loans come with interest and must be repaid, even if your company doesn’t exit. ?? ??. ??????-???????????????? ?????????????????? How it works: A lender covers your exercise costs in exchange for a portion of future proceeds, using your stock as collateral. ? Pros: No upfront cash required, and if your company doesn’t exit, you owe nothing. No personal assets at risk. ? Cons: May involve fees and interest, which could reduce your net proceeds in a successful exit. ?? Choosing the right option depends on your financial goals and risk tolerance. Check out Secfi's liquidity options here: https://lnkd.in/eAPmV7_R

???????? ???? ???????? ???????????? ???????????????? ??????????? If you own private company stock, you’ve probably noticed that there’s no single answer to this question. 409A valuations, funding round prices, secondary market transactions—each one tells a different story. So, which one actually matters? Well…it depends. In this week’s newsletter, Vieje Piauwasdy dives into how different valuations come into play during events like exercising, selling in a tender offer, or preparing for an IPO—and how our new ?????????????? ???????????? ???????????????? feature, powered by Caplight, can help you compare them all in one place. ?? Read the full breakdown below:

?????? ???????? ?????????????????????? ?????? ?????????????? ?????????? ???? ?? ?????????????????? ???????? ???????? ???????? ??????????????? If you receive commissions or bonuses, you might have noticed that the taxes withheld don’t always match your paycheck’s tax rate. That’s because there’s a difference between taxes withheld and taxes owed—and understanding that difference can help you avoid surprises come tax season. ? ?????????? ????????????????: The amount of taxes that are withheld by your employer, which may not necessarily cover all of the taxes that you owe.? ? ?????????? ????????: The actual amount of taxes that you owe based on your personal income tax bracket.?? ???? ?? ?????? ?????? ?????????????????????? ?????? ?????????????? ??????????? ? The IRS considers them “supplemental income,” which is subject to a default 22% federal withholding rate. ? If your tax bracket is higher than 22%, your employer’s withholding may not cover what you actually owe—meaning you could owe more at tax time. ? If your tax bracket is lower than 22%, you may have had too much withheld and could get a refund when filing. ?? ?????????? ?????? ?????? ??????????-?????????????????????? If your employer isn’t withholding enough, you could face an unexpected tax bill—or even penalties. To avoid this, you can: ? Make estimated tax payments throughout the year ? Adjust your withholdings to better match your total income ? Work with a tax professional to run a tax projection and plan ahead Do you receive commissions or bonuses as part of your compensation? How do you plan for the taxes owed? ?? Drop your thoughts or questions in the comments.?? Disclaimer: This is meant to be general tax advice. Please consult your tax advisor regarding your particular circumstance.??????

??????????????????????: ?????????????? ???????????? ????????????????. A clearer picture of your equity. Understanding what your private stock is worth isn’t always easy. Unlike public stocks, private companies can have multiple valuations—each telling a different story. That’s why we’ve partnered with Caplight to bring Private Market Insights to the Secfi platform. Now, instead of relying on a single number, you’ll see multiple valuation data points side by side, helping you make more informed equity decisions. ?? ???????? ???????? ?????????? ?????? ?????????? ??????????: ??? Compare different valuation methods – See how different pricing models shape your stock’s worth. ?? Better insights, smarter decisions – Understand how your stock is perceived by different market participants. ?? More transparency, more control – Have the data you need to plan your next move—whether that’s holding, exercising, or selling. With Secfi Private Market Insights, you now have access to the same valuation insights used by top investors and investment banks. ?????? ???? ??????????: https://lnkd.in/eYC27yZn