Is Your Company Going Public? The Real Question Isn’t Just About Money!
True Root Financial is a financial advisor and financial planner based in San Francisco, CA. We serve clients across the globe.
It finally happened. After years of late nights, product launches, endless Zoom calls, and maybe even a little bit of imposter syndrome, your company is going public. If you’re like most tech professionals in San Francisco, the first feeling is excitement. Then, right on its heels, comes the anxiety: What should I do with my stock? How do I minimize taxes? How do I avoid making a huge mistake?
If you are a tech professional interested in learning how we can help you claim your financial independence by investing wisely, minimizing taxes, and maximizing your equity compensation, please book a no-obligation call here.
These are all valid questions. But here’s the truth most people overlook: the biggest decision you’ll make in an IPO has nothing to do with money or taxes. It has everything to do with your life. Big financial moments don’t happen every day. When they do, you need the right partner by your side. Watch the video below to get an overview of why people choose us for their life-changing decisions.
Key Takeaways:
- An IPO creates sudden wealth, but money alone doesn’t bring fulfillment
- True success starts with asking “What do I want my wealth to stand for?”
- Defining your vision now prevents aimless financial choices later.
Why Money And Taxes Aren’t The Whole Story?
Scroll through LinkedIn or Google “what to do after IPO,” and nearly everything you’ll see is about:
- Minimizing taxes
- Optimizing stock sales
- Timing the market
- Diversifying your portfolio
Don’t get me wrong, those things matter. But they’re tools, not the destination.
If you only obsess about squeezing every dollar out of your IPO, you risk missing the bigger question: What do I actually want this money to do for me?
Because if you don’t know that answer, no amount of tax planning will give you peace of mind.
An IPO Is A Once-in-a-Lifetime Event
For most people, working at a company that goes public is rare. Having equity that’s actually worth something at IPO? Even rarer. You may never have this chance again.
That’s why it’s worth pausing to think beyond the numbers. This isn’t just about getting rich. It’s about reshaping your life, if you want to.
Consider this:
- Do you want the freedom to say no to projects or roles that no longer align with your values?
- Do you want to move closer to family, even if it means a career pivot?
- Do you want to start a company of your own, or maybe step away from tech altogether?
- Do you want to travel more, give more, or simply feel secure knowing your kids’ college is covered?
These are the real questions of an IPO. Without answering them, wealth is just numbers in an account.
Taxes and Strategy Matter, Just Don’t Obsess
Even though your primary focus should be on your life goals, it’s still important to know the basics of managing your stock:
- You can time exercises and sales to reduce taxes, like avoiding the Alternative Minimum Tax (AMT) on ISOs.
- Holding shares for at least a year can qualify you for lower long-term capital gains rates.
- Spreading sales over multiple years can help you stay out of the highest tax brackets.
- Diversification options, like Exchange Funds or donating stock, can protect wealth and reduce tax exposure.
Two Different IPO Journeys
Let’s imagine two colleagues, Alex and Erika. Both of them end up with $2 million worth of stock after their company’s IPO.
Alex dives headfirst into optimization. He delays selling to minimize taxes, structures everything to maximize potential gains, and stays heavily concentrated in his company’s stock. His ultimate goal? To end up with the biggest number possible.
Erika, on the other hand, takes a step back. She asks herself what she truly wants: more time with her kids, the ability to say no to late nights at work, and enough cash set aside for a down payment on a home in San Francisco. She sells a large portion of her stock right away, pays the taxes, and secures those goals.
Now fast-forward five years.
If the stock tanks, Alex has little to show for all his careful tax strategies. Erika, meanwhile, is already locked in the things that matter most to her.
If the stock soars, Alex might technically have more money than Erika. But Erika still has what she wanted: time, freedom, and security. And Alex? He may have wealth, but no clear idea of what to use it for.
Why Purpose Comes First?
The lesson here isn’t “ignore taxes” or “sell everything.” It’s that financial decisions without a life purpose behind them are empty.
When you start with the vision of what kind of life you want to live, money becomes a tool not the master. Tax planning, investment strategies, diversification… all of it is in service of something bigger.
That’s why the very first step in navigating an IPO isn’t running spreadsheets. It’s defining what success really means to you.
Questions to Ask Yourself Before Your IPO
If your company is about to go public, here are a few questions worth reflecting on:
- What does financial independence mean to me?
- What parts of my life would I change if money were less of a factor?
- What fears do I want to put to rest (student loans, housing, childcare, aging parents)?
- What experiences or contributions would make me feel proud years from now?
These aren’t quick answers. But the sooner you start thinking about them, the better decisions you’ll make when the IPO money actually hits your account.
Money Is a Means, Not the End
Taxes matter. Investments matter. But they are supporting players, not the stars of the show. Your IPO can give you the chance to buy freedom, create options, and design a life that feels meaningful. Or it can just be another number you compare with colleagues over drinks.
Which would you rather have?
Final Thought
Your company is going public. That’s exciting and a little nerve-wracking. But don’t let the buzz about taxes and stock sales distract you from the bigger picture.
Because the real question isn’t “How much will I owe?” or “How do I time this perfectly?”
The real question is: “What kind of life do I want this IPO to create?”
Next Steps
At True Root Financial, we’ve helped countless tech professionals navigate this once-in-a-lifetime moment with clarity and confidence. If your company is going public and you want to align your IPO windfall with the life you truly want, while still being smart about taxes and investments, we’d love to talk. Book a no-obligation call with us today, and let’s design a financial plan that turns your IPO into lasting freedom and purpose.
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