011: Getting Paid in Stock: Gold Mine or Rollercoaster with Brett Wysopal

“One of the big exercises you have to do is try to disassociate the emotion of your company to the reality of what the equity, in a worst case scenario going down, can do to your financial life.”

Today, our host, Joey Loss, sits down with Brett Wysopal, a career changer who made the leap from professional hockey to financial planning. Brett shares how the financially challenging world of pro sports cultivated his appreciation for sound financial planning and shaped his money beliefs. Joey and Brett discuss the transformative journey from a stable income to the uncertainties of starting a new venture and how financial experiences profoundly impact personal habits and perspectives. Brett's story is a testament to the power of money as a tool for navigating life choices and possibilities.

Joey and Brett shift gears to examine the complexities of managing equity packages for employees of private companies. The discussion highlights the unique risks and challenges faced by those without guaranteed liquidity events and underscores the importance of balancing investments with personal financial goals. They illustrate the dangers of losing sight of tangible goals in pursuit of uncertain windfalls. A regret minimization framework is presented as a valuable tool for decision-making, guiding individuals through the uncertainties of equity investments while keeping their personal life goals in focus.

In wrapping, Joey and Brett emphasize the critical importance of liquidity for employees of private companies, particularly those dealing with equity compensation. The conversation stresses the value of strategic planning to maximize liquidity opportunities, such as using high-yield savings accounts instead of maxing out 401(k)s.

Joey and Brett also look into tax planning intricacies surrounding equity compensation, underscoring the need for proactive strategies and the value of knowledgeable financial advisors. With real-world examples and personal insights, they aim to equip listeners with the knowledge needed to navigate the complex world of equity compensation and financial planning.

Key Topics:

• Brett Wysopal’s Career Journey (00:00)
• The Role of Life Planning in Financial Decisions (04:04)
• Parallels Between Sports and Financial Planning (06:38)
• Navigating Equity Compensation and Financial Stress (09:55)
• Challenges of Private Company Equity and Liquidity Planning (13:52)
• Emotional and Psychological Aspects of Equity Compensation (26:08)
• Tax Planning and Optimizing Equity Compensation (26:26)
• The Role of Financial Education in Equity Compensation (34:48)
• Wrap-Up and Resources (37:32)

Resources:

• Wysopal Wealth
• Brett Wysopal on LinkedIn

This podcast is brought to you by Joey Loss, CFP®, Adam Van Wie, CFP®, and Strivus Wealth Partners. Through Strivus, Joey and Adam provide financial planning and investment management services to clients across the country from their home base in Jacksonville Beach, Florida.

You can find show notes and transcript of the conversations here: Strivus Wealth - Wealth Unplugged.

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