Who Should You Call First After a Liquidity Event? (Hint: It’s Not Your Realtor)

So it finally happened. Your startup got acquired. Or maybe you just got through your IPO lockup period. Either way, you’re looking at your bank account and having to count the zeros twice because that can’t be right.

Then your phone starts blowing up.

A college friend suddenly wants coffee. Your inbox fills with luxury car ads. Real estate agents you have never met are unbelievably excited about your next chapter.

You have been living on hope for years. The urge to upgrade everything is real. But before you open Zillow or start composing that “I quit” email, let’s talk about the calls that actually matter right now.

The Emotional Rollercoaster Is Real

First, take a breath. A liquidity event is exhilarating, terrifying, and weirdly anticlimactic all at once. You’ve been working toward this moment for years, and now that it’s here, you might feel … confused? Anxious? Like you should be doing something, but you’re not sure what?

That’s normal. You’ve experienced a compressed decade of wealth accumulation in a single transaction. Your brain needs a minute.

So Who Gets the First Call?

Your Financial Advisor

(Yes, I am biased, but hear me out.)

Before you make any major decisions, consider working with a financial professional who understands the unique challenges of liquidity events in startups. And no, your buddy who’s “really into crypto” doesn’t count.

Tax planning is incredibly time-sensitive after a liquidity event. Depending on your equity type, exercise timing, and holding periods, your tax bill could vary by hundreds of thousands of dollars.

ISOs, NSOs, RSUs, and founder stock all have different tax treatments. The difference between a qualified small business stock exemption and ordinary income rates? That’s real money. Your financial advisor can coordinate with your CPA to develop a tax-efficient strategy before you trigger any unnecessary tax events.

Here’s the thing about suddenly having wealth: It’s different from gradually building it. Should you pay off your mortgage? Max out retirement accounts? Set up trusts? Diversify immediately or maintain some company stock? These decisions are interconnected, and making them in the wrong order can cost you. A good advisor acts as a firewall between you and every terrible idea that sounds amazing at 2 a.m.

Your CPA or Tax Attorney

If you don’t already have a tax professional experienced with equity compensation and liquidity events, find one. Yesterday. Your tax situation just got complicated.

You might be dealing with AMT implications, net investment income tax, state tax considerations (hello, California), estimated tax payments to avoid penalties, potential QSBS exclusions, and charitable giving strategies.

The IRS is very interested in your newfound wealth, and they’re not known for their sense of humor about missed deadlines.

Your Estate Planning Attorney

This one feels less urgent, which is exactly why it gets overlooked. If your net worth just jumped, your old estate plan is probably not built for your new life. You may need updated documents, new beneficiary reviews, asset protection strategies, and a plan for what happens to your equity if something happens to you. It is uncomfortable to think about, but an outdated estate plan can create serious problems for the people you care about most.

Who Should You Not Call First?

The Real Estate Agent

You have earned the right to imagine more space, a yard, or a place where the bathroom is not also the laundry room. But a home purchase locks up liquidity, and your financial picture may shift once taxes settle.

Give yourself a few months. Once you know your real after-tax number and your long-term plan, you can revisit the idea with clarity.

The Luxury Car Dealership

The Tesla, Porsche, or vintage Bronco will still be available in six months. A great car can absolutely fit into your life, but you want to make that decision as part of a strategy, not as an emotional reaction to a surprising bank balance.

Friends With “Amazing” Investment Opportunities

After a liquidity event becomes public, everyone suddenly has a deal for you. Crypto projects, real estate flips, food truck empires.

Some opportunities may be legitimate, but right now, you are not in the best position to objectively evaluate them. Get grounded first, and then invest with intention.

Your Boss

(With a resignation letter.)

A few million dollars is life-changing, but it is not always “never work again” money once taxes and real-world costs enter the picture.

You might still have unvested equity, employer benefits, and career clarity to consider. Give yourself time to understand what this liquidity actually means before you make career decisions.

The 72-Hour Rule

Here’s a framework: Give yourself 72 hours to do nothing financially significant except make the calls to your financial team. Don’t buy anything you can’t return, don’t quit your job, don’t lend money to friends or family, don’t invest in anything illiquid, and definitely don’t post about it on social media.

Use those 72 hours to let the reality sink in, schedule meetings with your financial team, and tell your spouse or partner (ideally before the 72 hours are up). And yes, go celebrate with a good meal. My personal favorite is Travail Kitchen.

The Bottom Line

A liquidity event is a once-in-a-lifetime opportunity. It is also a moment when rushed decisions can create long-term regret. The real estate agent, the dealership, and the vacation home will still be there later. The window to optimize taxes, protect your assets, and build a plan is much shorter.

Make the smart calls first. Build your foundation. Then you can enjoy the upgrade you have earned, knowing it fits your life and your goals.

If you want help navigating your liquidity event and building a plan to help protect and amplify your wealth, I am ready when you are. Schedule an introductory call here.