> $5,500 a month at market rate, which is affordable to a mid-level programmer at a large tech firm living alone
I understand what you mean that roommates are the only way it could make any sense. But I'm trying to understand where the author is coming from.
You actually can pay for rent or food with stock at a public tech company; just sell it immediately upon vesting. Many mortgage brokers will consider it part of your income for the purposes of qualifying for a mortgage. For non-public late-stage companies, you can often get liquidity in secondary market sales; the banks don't like this and usually won't count it toward mortgages, but once it's cash it pays for rent the same as anything else.
Interesting that mortgage brokers consider it part of your income. Though I guess it makes sense. I didn't realise exactly how high compensation was in the Bay Area. People always throw out numbers but I've always struggled to find any actual data. Perhaps I should head to the 'mines' for a bit...
Important to note that $300k isn't really a typical number for a midlevel developer in the Bay Area even if it is a typical number for Google and similarly competitive companies. It's like looking at investment banking comp and deciding that it's a typical number for a midlevel employee in finance.
That said, it's a perfectly achievable number a few years out of college.
You’d be stupid not to. You’ve already been taxed on it. The smaller gain in tax savings that you’d get from the delta against your new basis, over LTG holding period, is small and not worth the risk. Lastly, once you own the stock you don’t hold it just because it was given to you. Cash out and diversify.