The John Chapman Show Podcast

Host John Chapman of the John Chapman Show talks with Vieje Piauwasdy about the differences between incentive stock options and non-qualified stock options, grant date, vesting periods, exercising, and the tax consequences for employees of private companies.

Episode Highlights:

• Vieje shares his background and the company that he works for, a fintech startup called Secfi.  
• What are some of the things that employees come to Vieje for regarding stock options?
• What is the difference between ISOs and NSOs?
• What would be the ideology to offer their employees 
• What are the timeframes for employees for ISOs?
• What is the typical timeframe that employees have to exercise stock options?
• How do ISO and NSO taxes differ? 
• What happens when the spread is much greater than the market value? 
• Why is the idea of an early stock exercise something to consider after a vest date? 
• If someone has exercised, bought the shares, paid the AMT tax bill, what are the other things for them to think about as far as tax implications? 
• Vieje talks about NSOs, when they vest, and exercising them?

3 Key Points:

1. There is a limit of $100,000 that you can offer as an ISO for American employees. 
2. When you leave a company, you have 90 days to exercise stock options or lose them completely. 
3. For the US, you are taxed when you exercise stock options. 

Tweetable Quotes:

• “90% of my day is just helping employees with their stock options.” – Vieje Piauwasdy 
• “People have an insane amount of stock options where, if you could pay $1 to get something that is worth $20 its a no-brainer. But, if you are looking at 100s of thousands of options, not a lot of people have that liquidity.” – Vieje Piauwasdy
• “The vesting date means when you actually own that (stock) option.” – Vieje Piauwasdy

Resources Mentioned:

• Vieje Piauwasdy Linkedin
• Secfi website
• John Chapman Linkedin

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Host John Chapman of the John Chapman Show talks about his three practical ideas around having company stock, whether it is in the form of stock options or RSUs, and how they affect your net worth. Learn how not to let having the majority of your future funds tied up in the vitality that can occur with company stock. 

Episode Highlights:

• John Chapman opens up about the topic of having too much company stock. 
• John creates a scenario about a married couple that both work with two young kids who bought a house in the suburbs. 
• What are the three practical ideas regarding company stock?  
• What does John Chapman mean by, ‘you are only as good as your salary?’
• What does the high watermark theory refer to? 
• Always assume that you only have 50% of the company stock that you have. 
• Overlap an appropriate insurance and estate plan to your company stock situation. 
• Why do you need to understand vesting timeframes? 
• What is your flexibility with your stock money? 
• Does your emergency fund have 3-6 months of cash-on-hand? 
• What types of upcoming expenses do you have coming? 
• What is your medium to long-term expenses? 
• Don’t invest more than 20% of your net worth in one company. 

3 Key Points:

1. Keep your mindset in check. 
2. Combine an appropriate insurance and estate plan. 
3. Sit down with a financial planner to map out the vesting timeframes and decide what amount of stock you are going to sell and what amount you are going to hold. 

Tweetable Quotes:

• “Personal financial is 90% personal and 10% finance.” – John Chapman
• “If your day-to-day lifestyle creep is going to get above and beyond your salary and it is going to start eating into your equity compensation, you are potentially going to run into a situation where you are mortgaging the future.” – John Chapman 
• “If you want to live like no one else, live like no one else today. Meaning, stay tight, keep within your means. You are only as good as your salary. So that, you can live like no one else tomorrow.” – John Chapman

Resources Mentioned:

• Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks with Matt Perkins about his philosophy for sales that puts the customer first. Learn how to focus on the needs of customers through consultative sales and empathize with them authentically and incorporating expertise.  

Episode Highlights:

•         Where did Matt Perkins grow up and what was it like for him?
•         When was his first encounter with the idea of sales?
•         At what age did he realize he had his key moment to pursue sales? 
•         What was his sales experience while he was at the University of Washington?

•         Matt explains the difference between transactional sales and consultative sales. 

•         What is the mindset of someone in consultative sales?
•         What action steps should salespeople use to put customers first?
•         Sales are based on being able to listen, empathy, expertise, and authenticity. 
•         Why is it so hard for us to be ourselves in sales? 
•         What is the idea of problem aware, solution aware, and you aware? 
•         How do we discern where the buyer is in their buyer’s journey? 
•         Are their ways to draw people in during their buyer’s journey? 
•         What advice does he have for people in a sales role? 

3 Key Points:

1.   The transactional sale is someone having a need for something and someone selling it to them without much guidance prior to the purchase. 
2.   The consultative sale is when the customer doesn’t quite know what they need and the salesperson consults them on how to solve their problem. 
3.   Almost two-thirds of the economy in the United States is based on people liking to buy things. 

Tweetable Quotes:

•     “You need to be in service of others and you need to think about what is best for the person that you are speaking with.” – Matt Perkins
•     “The best companies in the world are customer-centric, truly customer-centric.” – Matt Perkins 
•     “As a salesperson, a lot of the influences around us are not necessarily customer-centric.” – Matt Perkins

Resources Mentioned:

• Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks about financial literacy with Frankie Calkins, Email Marketing Manager at Bulletproof 360, Author, and Former Teacher at San Jose High School. Frankie shares insight on possible reasons why learning about proper financial habits haven’t been taught earlier in schools, what positive changes have been occurring, and ways parents can prepare their kids for better spending habits. 

Episode Highlights:

•         Who is Frankie Calkins as a teacher?  
•         How is he taught to teach his students in terms of structure? 
•         Is there some lack of incentive for financial literacy to be taught in schools?  
•         What has been the progress in teaching financial literacy since 2007? 
•         Where is financial literacy best slotted into the existing curriculum? 
•         Did he see that there is a specific age that is appropriate to engage kids on 

            financial literacy? 

•         What are some healthy tips to develop money skills?  
•         Saving, spending, and giving are the key things to master with money. 
•         Technology is adding new apps, tools, and resources for teaching kids 

            financial literacy. 

3 Key Points:

1.   Frankie Calkin’s teaching experience spans grade 11 English, drama, and film studies. 
2.   Kids are extremely impressionable. So, begin teaching strong financial savings habits with their allowances. 
3.   Peer pressure is a bad way for kids to learn about money and spending. 

Tweetable Quotes:

•     “Fortunately, or unfortunately, a lot of it is teaching to the standards and so teachers have a lot of good insight going into it and into their training of what that state’s standards are for that grade and that subject.” – Frankie Calkins
•     “You’ve just got to find ways to make it fun and express your own personality and get the kids interest. Because if you did just teach to the standards day in and day out it's going to get exhausting.” – Frankie Calkins
•     “I think right now we are at about 20 states that do require financial literacy curriculum. Only one of which, I think it’s Utah, actually tests against standards.” – Frankie Calkins

Resources Mentioned:

• Linkedin: John Chapman
• Linkedin: Frankie Calkins
• Bloomberg article

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks about how you can put your kids through college and advice relating to the 529 account, how you can use it in the future, and some practical savings and investing strategies. 

Episode Highlights:

•         John Chapman shares some startling stats about student loan debt. 
•         What is a 529 account? 
•         How can you use the 529 account for? 
•         What can’t you use the 529 for? 
•         How much money should you be putting in a 529 account? 
•         What ways could pay for college come from in the future? 
•         What if you have over contributed to a 529 account? 

3 Key Points:

1.   In the past decade or so the price of higher education has been growing at a rate of over 8% compounded per year. 
2.   The 529 account is essentially a Roth IRA for college expenses. 
3.   You can use the 529 for tuition, books, supplies, and on-campus housing. You can’t use this money for transportation, repayment of student loans, studying abroad, smartphones, and extracurricular activities,  

Tweetable Quotes:

•     “In the state of California, today, in 2019, a private 4-year university can cost up to $50,000 per year, and that is just tuition and books alone.” – John Chapman
•     “The average student today graduating has over $30,000 of student loan debt.” – John Chapman
•     “There is over a trillion dollars in outstanding student loans in the United States, affecting more than 44 million people.” – John Chapman

Resources Mentioned:

● Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks about the ability to save $1 million. John dives into the various ways you can accumulate $1 million to live off of during your retirement years. Also, John Chapman analyzes these saving solutions with The Three T’s: timing, taxes, and the tools.

Episode Highlights:

•        John Chapman discusses about the influence of Jake Dunlap, the CEO of Skaled Consulting. 

•         What are the various ways you can save $1 million? 
•         John talks about working with baby boomers. 
•         What would it take to save $1 million dollars in your bank account? 
•         When can you pull the money out and how will it be taxed?
•         How can stock investments get you to $1 million with your non-retirement money? 

•         What calculations will get you to $1 million in equity with your investment real estate? 

3 Key Points:

1.   Your hard work will likely produce $1 million in savings. 
2.   You are likely to change jobs throughout your career. 
3.   $1 million can be accumulated by real estate, a retirement account, 401k, IRA, deferred non-compensation plan, company stock, cash bonuses, and diversified mix of investments.  

Tweetable Quotes:

•     “Be a servant leader.” – John Chapman
•     “Start with the end in mind.” – John Chapman
•     (Financial planning) “There are 5 inputs that we need to have for this: our present value, future value, how much we are saving, our payment into it, what we are going to grow it at, our interest, and years.” – John Chapman

Resources Mentioned:

● Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks about the choices you can make as they pertain to your old 401ks. John will also help you understand IRAs, and compare the traditional IRA to the Roth IRA and what exactly a self-employed 401k is. 

Episode Highlights:

•         John Chapman introduces the show topic of the options for your old 401ks.
•         What is your greatest asset? 
•         What are your options for your old 401k?
•         What are the cons of your 401k options?  
•         What makes the IRA unique? 
•         How does the Solo 401k work and who uses them?  

3 Key Points:

1.   You are your biggest asset so keep improving yourself and increase your ability to earn. 
2.   Options for old 401ks include: keep it where it is at if it is over $5,000, roll it into your new company, roll it over to a traditional IRA account. 
3.   The universe of ETFs are over 5,000 and common stocks have over 8,000 on US exchanges. 

Tweetable Quotes:

•     “I’m a huge advocate for you treating yourself with the care and attention and tenderness that you would an asset, like a piece of real estate.”– John Chapman
•     “IRA accounts, they were signed into law with the Employee Retirement Income Security Act, commonly know ERISA.”– John Chapman
•     “The universe of mutual funds is like 14,00 mutual funds. It’s huge.”– John Chapman

Resources Mentioned:

● Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show breaks down the history of 401k as well as the reasons why 401k are so important nowadays. He also talks about the 4 biggest mistakes people make and then shares tips for saving and building your 401k. 

Episode Highlights: 

•         John Chapman introduces the show topic of 401k plans. 
•         What does the financial retirement landscape look like right now? 
•         What is the power of the 401k? 
•         How does a company match work? 
•         What are some of the biggest 401k mistakes? 
•         What should you know about taking a loan from your 401k plan?  
•         John Chapman offers important 401k suggestions.

3 Key Points:

1.   The first 401k was signed into law by Congress in 1978. 
2.   According to the Department of Labor, there are $6 trillion dollars in 401k assets.
3.   The 401k is automatically deducted from your paycheck and it is tax-deferred. 

Tweetable Quotes:

•     “‘The total retirement money landscape right now is $28 trillion.”– John Chapman
•     “You have to save and invest. You can’t count on a penchant unless you work for the government.”– John Chapman
•     “Social security? Sure, it might be there, it will probably be there for our parents. But for us (millennials)? Just not something to count on.”– John Chapman

Resources Mentioned:

● Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks to listeners about the different levels of job changes and the impact on your company stock and equity that can occur. John goes over four different job stages: the new job, the job promotion, the job transition, and the job elimination. He also provides hypothetical workplace situations to enable you to visualize how stock options get impacted and possible action plans to take. 

Episode Highlights:

•         John Chapman introduces the show topic of job changes and managing equity.  

•         Don’t worry about what is not within your control.  
•         What should you do when you get a new job?
•         When you get a job promotion at your company, what adjustments should you make? 

•         Be aware of the concentration of risk and the financial fluctuations of your company stock. 

•         How can job transitions affect an employee’s company stock and equity?  
•         In what ways can your company stock and equity get altered by a job elimination? 

3 Key Points:

1.   When you start a new job you should find a mentor, schedule a call with HR and benefits department, and get in touch with the financial custodian. 
2.   Coordinate with a financial planner about how you are allocating dollars to short-term and long-term goals. 
3.   The different types of job transitions include mergers, acquisitions, and a take private. 

Tweetable Quotes:

•     “‘I want to remind everyone, myself included, about staying focused on those things that are within our control, as opposed to the things that are outside of our control.”– John Chapman
•     “If you are not going to keep a detailed budget of how you are spending your money, the one category I would want for you to focus on is the ratio of your savings as a percentage of your total income.”– John Chapman
•     “Understand the vesting timeline for your RSUs or stock options, whatever they are.”– John Chapman

Resources Mentioned:

• Linkedin: John Chapman

See omnystudio.com/listener for privacy information.

Host John Chapman of the John Chapman Show talks to listeners about the Intrapreneur Wealth Building Tool Kit that includes four different tools. If you are getting equity compensation, handling tax-planning, dealing with insurance, and are making retirement considerations, these four methods of wealth-building are key to understand. 

Episode Highlights:

•         John Chapman introduces the Intrapreneur Wealth Building Tool Kit. 
•         What is the wealth-building curve like for intrapreneurs? 
•         What has happened to pensions? 
•         How does a Health Savings Account work? 
•         John explains the intricacies of Employee Stock Purchase Plans.
•         What is involved in Restricted Stock Units?
•         The Roth 401k is a benefit that not every employee has access to. 
•         What is the difference between a Roth IRA and a Roth 401k?  

3 Key Points:

1.     The burden of wealth-building is completely on your shoulders. 
2.     The four tools of the Intrapreneur Wealth Building Tool Kit are: Health 

        Savings Account (HSA), Employee Stock Purchase Plan (ESPP), Restricted 

        Stock Unit (RSU), and the Roth 401k. 

1.     Restricted Stock Units allow you to not have to save out of your own paycheck and it is completely granted from the company. 

Tweetable Quotes:

•     “‘Your life is a blank slate and you are going to be able to save and invest the way that you want to and really build and create an amazing life. Equity compensation gives you a lot of puzzle pieces to work with.”– John Chapman
•     “HSAs, are only available, as you know, for high deductible plans.”– John Chapman
•     “ESPP, Employee Stock Purchase Plan. This is only available for folks that work at a publicly traded company. But, its hands down probably the most common type of equity compensation.”– John Chapman

Resources Mentioned:

• Linkedin: John Chapman

See omnystudio.com/listener for privacy information.