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The author specifies living alone > $5,500 a month at market rate, which is affordable to a mid-level programmer at a large tech firm living alone I understan

The author specifies living alone > $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.

nostrademons 8y ago
Oh, right. He also specifies mid-level developer (eg. Senior SWE or higher). I assume he means someone who's been working at a FAANG or late-stage startup for a couple years at least; by then, your stock options have started to vest and you can cash them out. Including stock mid-level compensation is usually well in the $300Ks for Bay Area large tech companies. 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.
- null0pointer 8y ago
  Is 'mid-level' really senior or higher? You are probably right about the authors assumptions. 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...
  - vostok 8y ago
    > I didn't realise exactly how high compensation was in the Bay Area. 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.
    - ryandrake 8y ago
      Yes, this is true. There are always people here on HN whose brother’s roommate’s best friend makes $300k at Facebook, and conclude that everyone in tech in the Bay Area makes that much. We are talking about outlier salaries at outlier companies.
      - vostok 8y ago
        I'm saying that they are normal total comp figures at outlier companies not outlier total comp figures at outlier companies. Of course they are outliers compared to the rest of the world.
- jiveturkey 8y ago
  > You actually can pay for rent or food with stock at a public tech company; just sell it immediately upon vesting. 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.

nostrademons 8y ago

Oh, right. He also specifies mid-level developer (eg. Senior SWE or higher). I assume he means someone who's been working at a FAANG or late-stage startup for a couple years at least; by then, your stock options have started to vest and you can cash them out. Including stock mid-level compensation is usually well in the $300Ks for Bay Area large tech companies. 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.

null0pointer 8y ago
Is 'mid-level' really senior or higher? You are probably right about the authors assumptions. 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...
- vostok 8y ago
  > I didn't realise exactly how high compensation was in the Bay Area. 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.
  - ryandrake 8y ago
    Yes, this is true. There are always people here on HN whose brother’s roommate’s best friend makes $300k at Facebook, and conclude that everyone in tech in the Bay Area makes that much. We are talking about outlier salaries at outlier companies.
    - vostok 8y ago
      I'm saying that they are normal total comp figures at outlier companies not outlier total comp figures at outlier companies. Of course they are outliers compared to the rest of the world.
jiveturkey 8y ago
> You actually can pay for rent or food with stock at a public tech company; just sell it immediately upon vesting. 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.