somic
Joined 17 years ago
Joined 17 years ago
After people are let go, severance and continuation of healthcare beyond some term mandated by law (maybe state, maybe federal, maybe varies by state, don't know) are not considered employee claims in this sense.
CEO and the board didn't follow the YC guidance mentioned above, and it's on them.
There is no one-size-fits-all recommendation though. Everybody is different, and everybody's situation is different. What works for me won't necessarily work for you.
Equity comp, especially in non-publicly-traded companies, indeed is closer to a lottery than a lot of people think, and articles like this are helpful because they are educating people about it.
I also once wrote a blog post about this topic - http://www.somic.org/2015/12/28/on-employees-investing-in-th...
There are also certain 401k rules that may play very hard against you. For example, take a look at mandatory withdrawals ("required minimum distribution" - RMD) for some types of retirement accounts in the US at certain age + how your retirement account suffers disproportionately if market is down when you start mandatory withdrawals.
I know the math you are talking about, it does make sense conceptually and that's why it's cited in all 401k materials, real life with its rules and uncertainty is bit more complicated.