Our Attention Span and Money

The average attention span and short-term memory recall has declined over the last ten years.  Some say it’s due to our ability to look up anything we need so our brains no longer find it a vital function.

Either way, I have strong memories of 9-11 and the 2008 crash.  I can remember exactly where I was, what the room looked like, who was around me, etc. Why do I remember the bad instances so much more?

Human psychology is so much more focused on the bad due to evolution.  Those who remembered the poison berries another ate lived longer.  Remembering bad moments in great detail allowed us to survive a longer time.

Thanks evolution – you take away my good memories and attention span and leave me with the bad ones?!

So what does this mean for today’s millennials?

We remember what it felt like and what is looked like, but we didn’t know the problems were primarily at home, and not worldwide.

The table below is a great example of how different types of stock (U.S. large stocks, U.S. small stocks, emerging markets, international, real estate, etc) can widely differ in performance from year to year.

Follow the S&P 500 (U.S. large companies stock) for example.  In the late 90s the S&P 500 was on a roll, and then when 2000 hit it became one of the worst performers for the year.  Each year is different and you won’t always know what makes it out on top.

JP Morgan returns JP Morgan returns from JP Morgan Quarterly Market Review, Q3 2024

Looking at the changes in this 10 year period of time, I can only imagine how frustrating it must be for new investors.  How can you consistently pick the right asset classes for greatest return?

In my mind, you can’t.  This is why I believe markets are efficient and few investors can outperform, because it is all priced into the stock over time.

This allows me the freedom to ask:  how do I protect and maximize my return while reducing the likeliness of large jumps like the S&P 500 in the above table?  I do this by holding a portfolio of many types of stock.  When one type dips, I have another that may rise in value or help counteract the effect.  Thus providing a more stable return over time.

So what about keeping my money in all cash?  There is no risk to that, right?

I am all for maintaining an emergency fund based on your lifestyle and needs in cash.  I also believe large expenses in the next few years are better left in cash.

However, I do believe there is a strong argument for investing into the stock market to combat long-term inflation.

Remember when you could get gas in the 90s for less than $1.00?  Remember when bread was less than $1.00 and you could scrape together a lunch with the change you found in your parent’s stash?

The changes over the last 20 years are a prime example of what could happen to your cash pile over the next 20-30 years.  In fact, we’ve seen inflation every decade since the 1940s and only over the last three years did it momentarily slow down.[1]

Our memories can be fickle friends and keep us from making good long-term decisions.  Adding to an already emotional topic – money.

If you are interested in talking to someone about growing your wealth, start now and schedule a time for your free 30 minute consultation with me.

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The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.

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[1] For more information and a great chart, check out InflationData.com, “Average Annual Inflation Rates by Decade” by Tim McMahon on June 18, 2015

This post was inspired by the article in The New York Times, “Praise Is Fleeting, but Brickbats We Recall” by Alina Tugend: March 23, 2012 and the book Moonwalking with Einstein: The Art and Science of Remembering Everything by Joshua Foe

How to make an 83(b) election for your company stock options

Updated September 12, 2025

What is an 83(b) election?  

An 83(b) election is an IRS filing that lets you (if your stock-option or RSU agreement permits) “early exercise” shares for tax purposes. By filing it within 30 days of early exercise, you start the tax‑counting clock immediately, giving you a chance to qualify for long‑term capital gains sooner.

At SeedSafe, we believe financial strategy should bring clarity and peace, not confusion. Think of an 83(b) election as a time machine for your tax life – iit can be empowering, but only if used with intention. This is for information purposes on the mechanics of making the election.

Can I make an 83(b) election?

Before making the election, it is important to understand whether your stock option agreement allows this. Your company, or the company attorney, should share an 83(b) election form (IRS Form 15620) with you, if you are eligible. You can also look at your stock option plan documents to see if it allows for “accelerated vesting” of your options or RSUs.

The election must be filed with the IRS within 30 days of the date you receive the shares (grant or exercise, depending on plan terms).  So don’t delay – you have a time limit!

What is accelerated vesting?

“Accelerated vesting” in your plan gives you the option to buy your equity now – rather than waiting years for it to vest. Filing the 83(b) election means you’ve taken constructive ownership today, which may, in certain circumstances, result in lower taxable income compared to waiting until vesting, depending on company growth and your tax situation.

Please review your stock option agreement and talk to your finance department to find out if you are eligible for this election.

What are the pros and cons of an 83(b) election?

Pros:

  • Starts the long-term capital gains holding period at the time of the election rather than at vesting
    • Incentive Stock Options (ISOs): possibly smaller or no bargain‑element income for AMT purposes
    • Non‑Qualified Stock Options (NQSOs): potential reduced ordinary‑income recognition at exercise
    • Restricted Stock Units (RSUs): could, in some cases, reduce the amount of income recognized at grant.

Cons:

  • Immediate cash outlay: you must pay for shares now
  • Partial elections can jeopardize ISO status: given the $100,000 option‑value limit
  • Company separation may require forfeiture: even if you already paid for the shares or paid taxes
  • State tax differences: not all states honor federal 83(b) treatment the same way

How do I make the 83(b) election?

  1. Understand the tax consequences:  Will you need to recognize any income on these shares?  fair-market value minus purchase price = gross income. You may owe taxes on this amount. This amount is something you may owe taxes on, depending on the situation. 
  2. Pay for your company shares:  Early exercise demonstrates ownership and reduces IRS risk of forfeiture.
  3. Complete the IRS Form 15620 (the Section 83(b) Election Form) within 30 days of receipt of the shares:  Your company should give instructions, but you’re responsible for filing on time.
  4. Include a copy of the form to be stamped and returned to you for proof of filing.  
  5. Mail the forms to your IRS office you would send a personal tax return to.
  6. Take the package to the U.S. Post Office and attach a Certified Return Receipt (example here). This receipt will serve as proof of the post-stamp date in case the IRS claims you did not send it within the 30 day period. 
  7. Keep good records, just in case:  You most likely won’t be selling the shares for a few years, so good record keeping can make all the difference!
    1. Original signed 83(b) Election Form (IRS Form 15620)
    2. Original Certified Return Receipt
    3. Copy of Cover Letter
    4. Copy of Check for Shares
    5. Stamped IRS returned copy of signed 83(b) Election Form (once you receive it in the mail)

In Summary

  • What: 83(b) lets you accelerate the capital-gains timeline on equity
  • Why: To change the timing of taxable income, which may in some cases result in different tax outcomes.
  • When: File within 30 days of grant date
  • How: Pay for shares, file Form 83(b), send certified mail, keep every piece of proof

Who Benefits From This Post?

We wrote this for growth‑minded tech professionals and value-driven families at life transitions—like early founders, creators of enduring legacies, and people who care about aligning money with meaning. This isn’t just about tax efficiency; it’s about creating spaciousness and choice, rooted in financial clarity.

If you’d like help thinking through whether an 83(b) election is right for your situation – or want a gentle, judgment‑free review through the emotional texture of this decision – we’re here to help you steward both your heart and your financial life with wisdom and trust.

This post is for informational purposes on the mechanics of the election. Discuss whether making the 83(b) election makes sense for you with your accountant or financial advisor.

Where are you in your start-up adventure?

This material is for informational and educational purposes only and should not be considered tax, legal, or investment advice. Please consult your own qualified professionals before making financial decisions, including whether to file an 83(b) election. Links to third-party websites, including IRS.gov, are provided solely for convenience and informational purposes; we do not control, endorse, or assume responsibility for their content.

If you live in a state with it’s own form of state AMT, this further complicates the matter. AMT calculations can be difficult and you may need professional help, such as that of an accountant, tax attorney, or someone experienced in complex tax returns.

Offer Letter Basics: RSU taxes and how it works

Offer letter RSUs

Revised as of January 2024

How do you evaluate an offer from a large tech startup or established tech company like Microsoft or Google?  The first step in evaluating your offer is to understand it!  Below, we discuss one of the components of your offer letter – how Restricted Stock Units (RSUs) and RSU taxes work.

Restricted Stock Units (RSUs)

Structure: Each RSU equates to a share of the company stock.  ex.  1 Google GSU = 1 GOOGL stock.

Value: RSU value is tied to the price of the actual traded stock price.  RSUs are a little different than stock options, and have an implicit value above $0.  As long as there is a stock price at vesting, then your RSUs have value.

Vesting: The initial RSUs grant generally vest over a few years with a 1-year cliff.  The 1-year cliff requires you to be an employee for at least a year before receiving any portion of vested stock.  At vesting RSUs are taxed.

RSU Taxes:. At the time of vesting, withholding for taxes is made.  Depending upon your overall income level, this may or may not be enough to fully cover your tax bill at tax return time.  Federally, the withholding tax rate on stock compensation starts at 22% and then converts to 37% on stock compensation above the $1 million mark.

Other general vesting requirements/rules:

  • Look at the small print – when you terminate employment, vesting stops immediately.
  • If you are considering parental leave, look to see if your RSUs stop vesting during any non-paid leaves.
  • Unlike stock options, your RSUs become actual shares at vesting and do not expire like stock options would.
  • Think the company will go gangbusters over the next few years?  Review your incentive stock option plan to understand if you may make an election to pay tax on the value of the RSUs now (Section 83(b) election).  Talk to your accountant or financial advisor, since this does come with significant risks.
  • Trading window: once your RSUs vest into stock, you will only be allowed to trade the stock at set windows through the year.  This prevents insider trading.  If you have a large set of RSUs vesting, you may decide to make a 10b5-1 trading plan for regular scheduled sales over a period of time.

1 Year Cliff Taxation: RSUs are generally taxable as ordinary income when vested.  The first year this happens can be a bit of a shock for some.  Watch our YouTube video HERE for a visual breakdown of what will happen.

Single Trigger vs Double Trigger RSUs:  RSUs can have different vesting requirements.  Most private companies offering RSUs provide ‘double trigger’ RSUs.  These require time vesting and an exit (IPO, acquisition, etc) before the RSUs fully vest to you and become compensation income.  If you have double trigger RSUs, check out this blog post for more information.

What are the main issues surrounding RSUs?

When you are negotiating your offer – most of the time they will have an internal analysis to support RSU and salary trade-offs.  As long as they keep within the boundaries of the model, then your ‘target compensation’ will be the same, from their view point.  This allows you to toggle up or down your own risk level.

So how do you feel about RSUs vs. cash salary?  Keep these things in mind when weighing your options.

Cash flow impact: Withholding RSU taxes are usually paid through a portion of RSUs sold at vesting.  These taxes paid are generally displayed on your W-2 as part of your total tax withheld.  Most larger tech companies will offer a signing bonus to help you transition to the RSU schedule for the first year.  The goal of this sign on bonus is to act as additional incentive to wait for the 1 year cliff vesting date.

Investment strategy: If you receive a large grant of RSUs, you will have many risks.  Risk of termination before vesting, risk of market volatility in stock price, and asset concentration are a few.  You will also want to decide if you will be keeping the stock once vested, or if you prefer to sell the stock.

Evaluating many offers:  Evaluating RSUs and stock options 1 to 1 is generally not appropriate. Employees will generally receive fewer RSUs than stock options since RSUs do not depend on company performance to the same degree. Evaluate your options with your accountant or financial advisor..

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The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management service

Our Philosophy

We believe everyone deserves a complete financial plan. A plan that incorporates your values, goals, and finances to help you lead a wealthy life now and build future wealth. 

Our financial plans:

  • define the current factors affecting your ability to build wealth,
  • provide recommendations and a clear framework for tackling your concerns in living a wealthy life, and
  • create an action plan for ongoing progress over our relationship.

Then, we continue to evaluate, implement, and monitor financial changes through ongoing progress meetings.  We review major changes in your personal life, identify your priorities, and review progress toward building your wealth.

Our journey together is about being honest on where you want to go, where you are now, and making a best guess on how to bridge the gap.  We help you balance the trade-offs in what you have to invest: money, time, energy, and skill.

We believe traditional Wall Street doesn’t fit Gen X & Y: the attention you receive should not be based on the amount of your investment assets.

Money decisions are often driven by desires to feel happy, safe and secure. By having a plan that matches your values with how you spend your money, you save time and increase happiness.  Everyone deserves happiness!

Our fee structure is built on the complexity of your current financial situation – not based on your investment assets.

We believe each person and family is different: you should work with someone you can trust and who is an expert in your situation.

It is important to work with a financial advisor who understands your current situation.  Do they have the professional network to assist you with your individual needs and do they understand your major concerns?

We focus on tech entrepreneurs and employees because we understand many of their particular issues:

Do you work for Amazon or Microsoft?

We understand their benefit plans and integrate RSU planning into our financial process.

We also know how to help you transition from the corporate life to a new adventure if this is your main goal.

Do you work for a local early startup? 

If your startup does not have a 401(k) yet or provides limited health benefits, we can help you determine the best options for you.

Want more information on your stock options?  We can help you think about the tax effects of these and make a plan for when to exercise your vested options.

Are you an early stage entrepreneur struggling with cash flow?

We can talk through budgeting, short term debt options, and how to think about your savings during this hard time.

As your career progresses, we assist you with tax planning for founder’s stock, minimizing risk in your portfolio, and protecting your family long-term.

Find out more about us on our About Us page.

Why I created SeedSafe Financial LLC

I am a fan of personal financial education.

I grew up in a self-employed single-mother home, where the highs were amazing and the lows were extremely stressful. I was my mother’s helper in her business and kept track of the business finances in QuickBooks.

In our home, business finances equaled personal finances, and we were often in the red.   The stress this caused in our relationship and our relationships with others was constant.  This period of my life is known as “hormonal teenage years x 10”.  While financially treading water, my mom tried to give us a typical Texas suburb life.

When I arrived at college, I realized I wasn’t alone in my financial confusion.  At my orientation, banks handed out credit card applications and promised a free t-shirt for signing up. Students fumbled through living independently on a budget or worked to make ends meet while attending classes.  None of us knew the best way forward in optimizing our financial situation.  In the case of money, we felt like 1st graders learning multiplication without a teacher’s guidance.

So I dove in and learned as much as possible about personal finance.  I taught seminars on credit scores and what to look for in credit card applications.  I worked as a book keeper for small businesses and developed my tax skills working on tax returns for a regional accounting firm.  Then, I began consulting with self-employed individuals in tax planning for their businesses.

Clearly, this was the time I found my inner tax geek and I never looked back.  I went on to work in public accounting, continued consulting with small business owners, and become a financial advisor.

SeedSafe Financial LLC is the result of my ongoing passion to make financial decisions attainable for Gen X and Y.

We help you figure out your financial options.

My goal is to change the way the financial industry thinks. Instead of doing real financial planning with only $1 million+ clients, I believe we should be proactive in helping you build wealth early on.

SeedSafe Financial LLC meets you where you are (before you are a zillionaire).  We work with Gen X & Y when you have time on your side for small changes to make a huge impact on your life.

Schedule a discovery call with us to learn more!