Private Companies, Stock Splits and Taxes

From 2001 to 2009, I worked at a private company in various roles, from marketing manager to director. Over my eight years there, I gained stock options from my hire date in January of 2001, to my last option grant in the fall of 2008. In addition, I purchased stock as an individual in 2005 and 2006. While we filed to go public in 2007, we eventually had to withdraw this plan, and the company never did see those options become public.

Last fall, after I joined Google, the company was finally acquired, for cash. I was given some payout from my time there, and separate investing, but due to many different rounds, up and down, numerous stock splits, and the CFO position being a revolving door, getting critical details, such as how many options came from which purchases, and the dates of the acquisitions have been almost impossible to figure out.

As you can imagine, this is big problem when it comes to filing taxes. TurboTax, or any reasonable tax professional, will need to know the details of when stock sold was acquired and for how much. But the third party company that managed working with stockholders doesn't have any records of acquisition dates or prices - only the number of shares per person and value of those shares. The CFO and financial team at the company (since acquired) doesn't have access to it either. My own records, mental or otherwise, aren't a perfect match, as the stock I acquired subsequently was reverse split and diluted, so the shares I purchased don't match those I was paid out on.

So this is a fun detective game of sorts, walking through my bank records (ever try to find a check for a certain amount from 6 years ago on Wells Fargo or eTrade?), and even emailing the law firm (Wilson Sonsini) which might have this data somewhere. All in the name of trying to be as truthful as possible so I can have the benefit of paying the IRS a good chunk of money which they are owed.

Had the company been a startup acquired in its first two or three years of life, like some you often read about, you wouldn't have the complexity of multiple rounds of stock, reverse stock splits, and the changes in financial team leadership. Had it been a public company, stock purchases would be easier to find, as would the stock prices. But the meandering road of a company that fought hard for a decade, before getting purchased, makes for messy records.

I am hoping I don't have to end up filing an extension (having never done so), but the deadline to file is fast approaching, and I still have gaps. It sounds like I should have made solid marble copies of those checks I made out to the company when buying my shares and locked them away in stone. If only everything was as easily searchable in the cloud as it should be.

/via my Google+ Profile

Mint Adds Goals to Help Plan Your Financial Future

Mint.com is quickly turning into a single stop venue to not only capture your current financial picture, and graph how you are doing in terms of spending and savings from your financial history, but it is also helping you set marks for the future - with the launch of Goals, a new tab now available for all users, who can leverage the site's relationships with various financial institutions and intelligent calculators to see how much money they should be saving to achieve one's life targets. And even if you opt not to sign up with new banking institutions immediately, the site's basics help you stomach the tough realities and importance of socking money away even when it seems you can't afford it.

While Mint.com previewed the new Goals feature at the end of April, the tab just went live for all users, between budgets and trends. As you can expect, the site encourages you to choose from a list of preset goals, select an end date or affordable amount, and then, once saved, you can track Mint.com to see how close you are at achieving this goal.

Mint.com Has Many Preset Goals

For example, when looking to buy a home, Mint.com asks your annual income, and prefills with average mortgage rates, 20% downpayment, insurance and property tax data. The more you earn, the more you can afford. It even provides "Aggressive" and "Conservative" options should you be more fiscally responsible or prefer to live dangerously.

You Can Set Criteria In Mint.com To Gauge Home Purchase Planning

Speaking of dangerous, as a parent of twins, simply calculating college costs can be scary indeed. One can set estimated costs per year, the number of years the student plans to attend college, and their current age to start the calculators in motion. In fact, Mint.com says we should be saving more than a thousand dollars per month, every month, per child, to be prepared for a good school, so that is quite daunting. Luckily, they do offer a way to get a 529 plan started to help with that process.

It Could Cost $200k to Save for One Kid's College. Gulp.

Mint Says to Save $1,035 Per Child Per Month for a $25k/year Education

Where I think the Goals function falls a little short is that it first, doesn't tap into your existing data on the site, as it could help you understand how much you make on average, and it also relies on you to choose how much things will cost in the future. Why not suggest prices for specific colleges, cars or geographies for instance, when buying a home? In these simple models, you say whether your child will attend a $10,000 a year university or a $30,000 one, and you decide whether you think you earn $30,000 a year, or $300,000.

Mint.com, now part of Intuit, can make quite a bit of its own revenue through referrals of its customers to financial institutions that offer the very plans that make sense to achieve these goals, so in some recursive way, these goals push Mint.com's goals further forward. I do plan on investigating if it makes sense to get serious about my kids' college plans, and yes, we may even need to plan on getting one of those super cool minivans everyone is talking about once baby #3 shows up, so I'll tap Mint.com for suggestions on saving there as well. It's a goal, right?

If you are a Mint.com user, check out Goals here: https://wwws.mint.com/goal.event

Intuit's Mint and TurboTax Have Your Finances Summed Up

It may only be the beginning of March, but our home's taxes are already done. It's a yearly tradition of sorts to head online, capture all relevant data, and trick Uncle Sam into giving us a refund in time to blow it all on the Final Four (not really). That's due to my leveraging TurboTax online, which gets easier every year, considering how it comes pre-linked to the prior year's data. Now, with Intuit also owning the personal finance site (and awesome iPhone app) Mint.com, the same company keeps my data organized all year round - and with tax time being a good opportunity to look backwards, I thought I would highlight some of Mint's more interesting options.

While much of Mint.com's focus has been on trying to find ways for you to save money, for example, by switching from one credit card to another, or finding a new brokerage firm, I have been watching my Mint activity to help see whether we have been breaking even this month, if our family is within budget, or through getting alerts on high expenditures and deposits. Mint has become one of my most frequently-used iPhone applications and Web sites, especially as I've managed starting the new consultancy in the middle of last year, transitioning from my full-time role with a more stable income.

Mint.com Shows Half My Spend Was from 10 Merchants in 2009

As you know, doing one's taxes helps to bring clarity into the last twelve months. It gives you a sum total of what you earned, what you took home, what you were able to deduct, and how much you gave to the government. But it doesn't show you details on your spending. Mint does.

If you are a Mint user, you can walk through your spending history, and if organized well, you can see where your money is going - to your house, to your groceries, utilities, car, or entertainment, to name a few categories. After logging into Mint, click Trends, and choose Spending By Merchant.

Clicking Mint's "Other" Category Shows Me Merchants 11-20

I selected the 2009 period, and found, unsurprisingly, that 5% of our home's expenditures went to Safeway. What was a surprise is that we had more than 100 transactions at Safeway, which meant either my wife or I was going to the grocery store every 3 or 4 days (some days had multiple charges). The most we ever spent at Safeway was $208.32, and the least was a mere $5.49. In contrast, expenditures at Apple just exceeded 1% of all spending last year, less than 2 percent overall. Meanwhile, no doubt the result of having twin toddlers, and their being invited to other baby showers and friends' birthdays, there were more than 20 expenditures at Toys R Us, good enough to have gotten me a brand new MacBook Pro with all the fixings.

Just like you no doubt do when you look backward at your previous year's investments, there are purchases on my Mint.com history that make me cringe - as I look at air travel to events that proved less than useful, or wonder about whether I should have given so much money to Adobe, or raise my eyebrows at the more than $1,100 spent at Chevron in 32 separate transactions. But the more I look at the data, the smarter a consumer I become, as I use the information to change my behavior, and constantly look at Mint to see if I am on track.

Everything I have heard from my occasional talks with people at Intuit is that Mint.com's being set to replace Quicken Online is that Quicken was seen as a tool for the last generation - the one who balanced their checkbooks to the penny. Mint.com isn't yet integrated with TurboTax, but I would assume having the two properties under the same roof offers plenty of potential. The question is, can you take advantage?