Compound

For two years, a handful of mega-cap tech companies have been pulling the market higher. May started to look different. Q1 earnings grew nearly 30% YoY — but the more interesting story is who’s driving them. Because it’s no longer just the Mag 7. As our CIO Stephen Dean, CFA puts it: "Earnings leadership is beginning to broaden beyond the original 'Magnificent Seven' companies and into the broader technology ecosystem." In his June market update, he’s keeping a close eye on: → The SpaceX IPO: the company is expected to float only 3–4% of shares, meaning most index investors won't have the exposure they think they do — at least not right away → Private credit: default rates are gradually rising, and manager selection is becoming more consequential → The Fed: inflation is still above target, employment is still resilient, and the two sides of the mandate are pointing in different directions Steve has been keeping a close eye on these factors, and the SpaceX IPO, as he analyzes what’s next for the IPO market: https://lnkd.in/gib27f3A 𝘐𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘪𝘯 𝘪𝘯𝘪𝘵𝘪𝘢𝘭 𝘱𝘶𝘣𝘭𝘪𝘤 𝘰𝘧𝘧𝘦𝘳𝘪𝘯𝘨𝘴 (𝘐𝘗𝘖𝘴) 𝘢𝘯𝘥 𝘱𝘳𝘪𝘷𝘢𝘵𝘦, 𝘷𝘦𝘯𝘵𝘶𝘳𝘦-𝘣𝘢𝘤𝘬𝘦𝘥 𝘤𝘰𝘮𝘱𝘢𝘯𝘪𝘦𝘴 𝘤𝘢𝘳𝘳𝘺 𝘴𝘪𝘨𝘯𝘪𝘧𝘪𝘤𝘢𝘯𝘵 𝘳𝘪𝘴𝘬𝘴, 𝘪𝘯𝘤𝘭𝘶𝘥𝘪𝘯𝘨 𝘦𝘹𝘵𝘳𝘦𝘮𝘦 𝘱𝘳𝘪𝘤𝘦 𝘷𝘰𝘭𝘢𝘵𝘪𝘭𝘪𝘵𝘺, 𝘭𝘢𝘤𝘬 𝘰𝘧 𝘭𝘪𝘲𝘶𝘪𝘥𝘪𝘵𝘺, 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭 𝘧𝘰𝘳 𝘵𝘰𝘵𝘢𝘭 𝘭𝘰𝘴𝘴 𝘰𝘧 𝘤𝘢𝘱𝘪𝘵𝘢𝘭. 𝘚𝘱𝘦𝘤𝘶𝘭𝘢𝘵𝘪𝘷𝘦 𝘱𝘢𝘳𝘢𝘮𝘦𝘵𝘦𝘳𝘴 𝘳𝘦𝘨𝘢𝘳𝘥𝘪𝘯𝘨 𝘢𝘯𝘵𝘪𝘤𝘪𝘱𝘢𝘵𝘦𝘥 𝘐𝘗𝘖𝘴 𝘢𝘳𝘦 𝘴𝘶𝘣𝘫𝘦𝘤𝘵 𝘵𝘰 𝘤𝘩𝘢𝘯𝘨𝘦 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 𝘯𝘰𝘵𝘪𝘤𝘦.

You tell yourself you'll figure out your equity situation eventually. But by the time it is real, you could have already missed your best planning opportunities and tax strategies. If you've been sitting on decisions, our next Compound Conversation covers how to manage your equity in that middle ground — past early stage, but not quite at the IPO. You might have multiple equity grants, tender offers could already be happening, and the company's valuation may be nearing unicorn status (if it isn't already). On June 11 at 11am PT / 2pm ET, Jonny Jonson, CFP®, CPA, Timothy Couture, CFP® , and Marcel Pfister will cover: → How concentration risk builds quietly over time → When to hold vs. diversify, and what to do with proceeds if you do get liquidity → How tender offers work and whether participating makes sense for your situation → How your equity fits into your broader financial picture 👉 Join live or register for the recording: https://lnkd.in/gWjgQRGY

We've been having these conversations with clients for years. Now we're sharing them with you. Come join us on The Concentrated Position. 🎙️ Tim Hamilton, CFP®, CIMA® and Dimitry Farberov, CFA®, CFP® have spent nearly two decades sitting across from people with complicated financial lives, helping them through big decisions and real trade-offs. Now you get a seat at the table. Each episode covers what's moving markets and the personal situations that keep our clients up at night: concentrated stock, liquidity events, private investments, and everything in between. And we're kicking things off with a good one. Tim and Dimitry dig into the wealth immunity trap. Why do people who've responsibly saved and planned still feel like they don't have enough? They also get into why markets are at all-time highs when nothing in the news feels like it should allow that. Subscribe now so you don't miss future episodes. 🎧 Apple Podcasts: https://lnkd.in/gQ94gKUw 🎧 Spotify: https://lnkd.in/ghQeqFFb

You've run the numbers on the big change. You know you can afford it. But you still can't pull the trigger. Most of the time the hangup isn't financial. It's the fear that once you make the move, there's no coming back — that you can't return to the career, the income, the life you had before. Usually there is a path back. You just need to see what it looks like before you decide. Our advisors help clients find it so a major life change feels like a calculated risk, not a cliff jump. They walk through: → Figuring out whether your decision is actually permanent or just feels that way → Designing a trial period so you can test the change before committing → Building a financial cushion so money stress doesn't cloud the decision → Mapping out what a path back could look like, so you know it exists before you go Jonny Jonson, CFP®, CPA Jonson laid out the framework here: 👉 https://lnkd.in/gqvfW4fe

Imagine you get hit with a $100,000 tax bill. You'd probably start to panic. So, what can you do? Unfortunately, there’s likely not much you can do retroactively. But you can use the opportunity to diagnose the issue and make sure you're not surprised next year. By incorporating tax planning throughout the year, you’ll know why your bill was so high, what to expect, and how you can minimize the gut punch. The most common causes are predictable once you know what to look for. Maybe: → Your W-4 hasn't been updated since you started a new job, or your marital status or overall income changed → Your had RSUs that your company withheld at 22% but your marginal rate is 37% → Your exercised ISOs and didn't account for AMT your company doesn't withhold → A bonus or commission came through that you under withheld None of these are unusual situations, but they all can be mitigated with an advisor’s help. Jonny Jonson, CFP®, CPA walks through exactly how high earners build a strategy before the bill arrives — not after: https://lnkd.in/g7x2khHK

Your stock options aren’t just compensation. They’re the right to invest in your company, and the decisions you make early can shape the outcome. On May 28, Jonny Jonson, CFP®, CPA and Marcel Pfister are walking through what those decisions actually are, and how to think about them, including: → The difference between ISOs and NSOs and why it matters before there's any liquidity → The 83(b) election: what it is, when to file, and what you lose if you miss the window → Why exercising ISOs can trigger the alternative minimum tax, even before you sell any → How to think about exercising when a liquidity event is still years away → Who qualifies for QSBS and what founders and early employees often get wrong Even if you can’t join live, register to receive the recording. You can also submit any questions when you sign up. This is the first in a three-part series on equity compensation at every stage of a company's lifecycle. Visit our site to sign up for any, or all, that align with the equity decisions you’re facing. 👉 Register here: https://lnkd.in/gbDjsi6E

We're excited to announce that our CEO Alex Farman-Farmaian is speaking at Wealth Management EDGE in Boca Raton next month! He'll be sharing what he's learned building Compound to $5B in AUM — and how RIAs can expand into family office services without losing the high-touch experience that makes the model worth it. Don't miss his session on June 9 at 1pm, alongside Jeremiah Barlow, MBA, JD of Mercer Advisors and moderated by Matt Zampariolo of Cerulli Associates. If you're heading to EDGE, stop by his session or send us a message to find time to connect. 🌴 👉 See more info on the session here: https://lnkd.in/gKjqg_5P

SpaceX has accelerated it's IPO timeline. If you hold equity, now is the time to get your questions answered. Nicholas Garcia and Jonny Jonson, CFP®, CPA are hosting a live session tomorrow walking through tax strategies, liquidity options, and how to think about your equity before the IPO. 👉 Join us live or sign up to get the recording: https://lnkd.in/gxem2_DN

Your tax strategy shouldn’t exist in a vacuum. Your full financial picture — including your life goals and risk tolerance — and even future economic factors should all factor into play.  Our Principal Wealth Advisor Tara Shulman just published a piece in Forbes that helps reframe that “best tax mitigation” thinking for high earners approaching liquidity. She helps clients think about what matters:  → Do I need liquidity now?  → What are my specific near- and long-term goals?  → What risk am I comfortable carrying given the macro environment, potential for loss, and other factors? → What could happen six months, or years from now, that could impact my potential take home? Their answers help determine the strategies they put into practice. Tara has guided clients through liquidity events at Figma, Coinbase, and many other companies. Here's the approach she stands by 👉 https://lnkd.in/gi_qiWq7

Analysts expected 13% earnings growth in Q1. With most results in, they got 27%. Markets responded by hitting all-time highs last month, even with oil above $100 and the conflict in Iran. Here are a few numbers worth paying attention to: → Mag 7 earnings growth expectations revised from mid-teens to over 60% in a single month → Broader S&P 500 earnings expectations revised into the low 20s → Both revenue growth and margin expansion driving the results Our CIO Stephen Dean, CFA is now watching whether that holds: → Whether energy-driven inflation stays contained or feeds into broader prices  → How new Fed Chair Kevin Warsh navigates rate cuts given his historically cautious stance on inflation → Whether consumers hold up as gas prices eat into income 👉 Steve's full April markets breakdown here: https://lnkd.in/g-Q27g8S