Contract Negotiation Strategy and Turning Income into Equity

Utilize tax-advantaged investment vehicles offered by the company and force yourself to maximize contributions. When negotiating a compensation package, focus on increasing equity and profit participation rather than salary. Seek to enhance options package or profit sharing to feel like an owner and maximize leverage. By securing equity in a company, individuals can benefit from tax-deferred growth, potential long-term capital gains, and favorable tax treatments, provided they exercise the options and hold the equity for longer than a year. Seek advice from an accountant on setting up savings and converting current income into long-term equity with advantageous tax treatments.