Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Personal Finance
Do employees pay less taxes by exercising stock options pre-IPO?
Techcrunch | Frederik Mijnhardt | Jan 20, 2022
Last year set a new record for public exits, with more than 844 U.S. companies going public via an initial public offering (IPO), a direct listing, or through a special purpose acquisition company (SPAC). That’s 105% higher than 2020, which saw 410 similar companies go public, according to PitchBook.
The 20 largest U.S. IPOs generated an estimated $41 billion in pre-tax value for employees who held stock options in those companies.
Record public exit activity is good news for founders and investors, but what about the employees who were granted stock options in those companies?
We dove into our proprietary data as well as publicly available data filed with the U.S. Securities and Exchange Commission to uncover defining trends for employees from late-stage unicorns in 2021.
See: Derrick Hunter: Entrepreneurs are critical to economic growth and Politicians should recognize it
Here’s an overview of what we found:
Employees could have paid less in taxes by exercising their stock options before their company went public.
- In 2021, startup employees paid an estimated $11 billion in avoidable taxes by exercising their stock options post-exit, rather than pre-exit.
- On average, Secfi clients paid $543,254 in 2021 to exercise their pre-exit stock options (roughly double their annual household income), with taxes accounting for 73% of the cost.
- Employees at companies that went public in 2021 saved nearly $415,000, on average, by exercising before an IPO.
- Pre-exit stock option exercise rates vary widely from company to company, from as little as 2.4% on the low end to more than 77% on the high end, which could represent an indication of employee confidence in their company.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Financial Health Network: Employer FinHealth Toolkit
Financial Health Network | Jan 20, 2022
Why Invest in Employee Financial Health?
Now more than ever, employees at all income levels are struggling with their finances, especially those with low to moderate incomes. When people worry about their finances, they struggle to stay focused and productive at work. What’s more, employees have come to expect that their employers will provide wages and benefits that support their financial health.
See: Financial Health Network Report: Financial Data – The Consumer Perspective
Investing in the financial health of your workforce can create a win-win for your employees and your business. But beyond being a smart thing to do, many companies recognize that investing in employee wellbeing is the right thing to do. Caring for the financial health of your workforce shows that you value your employees and the contributions they make to your company’s success.
Diagnose Needs
Employee needs are diverse. One-size-fits-all financial health solutions can result in low uptake and limited impact, because they don’t address the needs of the employees who could benefit most. Before designing solutions, take the time to understand your employees’ needs and prioritize the most acute challenges.
Identify Solutions
To find the right solutions for your employees’ most pressing financial needs, begin by looking for gaps that could be addressed with enhancements to existing programs or new solutions.
See: How Employers and Leaders Can Help With Our Mental Health Crisis
Design for Engagement
For many employers, encouraging employees to use their benefits optimally is an age-old challenge. Use these strategies to promote engagement with your financial health programs.
Measure Impact
You’ve begun diagnosing your employees’ needs, rolling out solutions to meet those needs, and designing your program to maximize engagement. Now how do you know if it’s working? A robust approach to measuring impact of your programs is a critical component of an effective employee financial health strategy.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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UK Research: How consumers use savings apps
OBIE UK | Jan 6, 2022
As part of new research conducted for the Open Banking Implementation Entity (OBIE) by independent research agency Marketing Means, we interviewed a small number of UK consumers, from a wide range of age groups and income brackets, who shared their experience of the market-leading savings apps.
How can apps help the saving habit?
Open banking savings apps offer a handy, ‘low impact’ way of helping individuals to save.
This works in two ways: providing an additional means of saving for more established savers, or in some cases, provide a way of saving to individuals who have otherwise struggled to do so.
Q. What are the positive aspects of using your savings app?
A. “I really like the saving round-up feature. I’d say overall they’ve met my expectations and exceeded them. And using it, I’ve matured as a saver.”
See: Fiserv Research: Fintech Adoption Update on Consumer Expectations and Experiences
A. “It’s all very easy. How much goes in varies, as it runs itself in the background, but I really like the way I can slow down or speed up the savings rate through the app. It really gives me confidence that if I’m having a heavy week, I can adjust it.”
A. “I save through two apps. One has a fairly standard account but there are some issues with getting money out of that one. I’ve had some delays on withdrawals, so I tend just to leave the money in there. On the other app, I’m more engaged as I’ve got money going into two funds. One is a standard one but the other one has a higher risk rating. I enjoy doing that one. It’s satisfying seeing what happens with it, and fun as well.”
A. “The advantage was, I didn’t want to replace my bank account, so I didn’t want to go down a Monzo route. I wanted an additional savings facility that would link to different accounts I have.”
Q. Was the app easy to use and did it help you understand your finances better?
A.”I really like how the app slows me down. Because it’s a restricted access, I can’t just dip into it as I have done in the past with others. But also, that makes me reflect and means I can think about my money more. It’s changed the way I am with money, for the better.”
See: Financial Consumer Agency of Canada publishes BNPL pilot study
A. “I like the flexibility. You can dial the savings rate up and down. You can boost a payday. I can use it flexibly to save when I’ve had a bonus. And I like the way they describe the investment plans – ‘standard’, ‘balanced’ – I think that’s a useful way to explain them, easy to understand. The app has a really good dashboard, it almost feels as if you’re getting a bespoke savings service that’s easy to use.”
A. ” I was attracted by the way it saves in the background, so you hardly notice it’s happening. When I started, I thought I’d build up a substantial fund really quickly. I’ve got a more realistic view now, but I’m still really happy with it.”
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Download a 68 page PDF UK fintech customer survey report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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New Mastercard Study: Majority of Canadian Consumers Embrace Open Banking
Mastercard | Dec 15, 2021
Report finds more than 77 per cent of consumers in Canada – and 86 per cent of Gen Z – are already connecting their bank accounts to technology apps
TORONTO, Dec. 15, 2021 /CNW/ - Mastercard released a new report, The Rise of Open Banking, demonstrating the mainstream adoption of technology to power smarter, more meaningful digital experiences. Open banking puts consumers at the centre of where and how their data is used to more effectively provide the services they want and need. Fintech companies and banks use this consumer-permissioned data to provide easier and more inclusive access to credit, personal financial management, digital wallets and payments services.
See: Tink Survey Report 2021: Open banking spending, investments and use cases
Open banking is already embedded in several areas of our daily lives, including personal financial management tools, linking of financial accounts and account opening. According to the report, over nine in 10 consumers (95 per cent) in Canada use online and mobile financial applications to manage money, with paying bills (85 per cent) and banking (84 per cent) as the most popular use cases.
Willingness to Connect Financial Accounts
Critical to driving many, if not all, of these transactions is the ability for consumers to securely link their bank or payment accounts and authorize their financial data to be used in online financial applications. The report found that:
- 65 per cent of consumers in Canada have, or would, consider connecting their bank accounts to financial apps and services to automate financial tasks
- 69 per cent of consumers in Canadian have, or would, consider connecting their bank accounts to financial apps and services to easily send money to someone
See: Privacy Implications of an Open Banking System in Canada
Trust in Fintech
Consumers are already connecting their data via multiple platforms to manage finances, and thus make their data work harder for them. Of those surveyed:
- 55 per cent of consumers in Canada feel very confident using technology to manage money
- Convenience is a top driver for using financial technology, with 62 per cent of consumers in Canada saying fintech saves them time and is less work
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank of Canada holds on rates, warns of elevated inflation
BNN Bloomberg | | De 8, 2021
The Bank of Canada kept borrowing costs unchanged, but highlighted strength in the labor market and worries about the persistence of inflation that will likely keep expectations of imminent interest rate hikes intact.
See: Interested in a High Interest Bitcoin Saving’s Account? Interview with Ledn CEO, Adam Reeds
In a statement-only decision Wednesday, policy makers led by Governor Tiff Macklem left the benchmark overnight rate unchanged at 0.25 per cent and reiterated the economy continues to require considerable monetary policy support.
Still, officials dropped a reference to inflationary pressures being temporary, and noted recent job gains have been broad-based with the employment rate returning to pre-pandemic levels.
While the language changes from the previous decision were incremental, there’s nothing in the statement that’s likely to derail investor expectations that the Bank of Canada is about to embark on an aggressive campaign of rate hikes.
“Inflation is elevated and the impact of global supply constraints is feeding through to a broader range of goods prices,” according to the statement, which added that “recent economic indicators suggest the economy had considerable momentum into the fourth quarter.”
The Bank of Canada is at the forefront among Group of Seven central banks in slowing its stimulus efforts.
See: Is Staking Crypto The Same As Interest?
In October, it ended its bond-buying stimulus program and accelerated the potential timing of future rate increases amid worries that supply disruptions are driving up inflation. Markets are pricing in rate hikes in Canada next year at a faster pace than the Federal Reserve, which has yet to end its quantitative easing program.
“Slightly hawkish, but non-committal,” Simon Harvey, senior FX market analyst at Monex Europe Ltd., said by email.
“We continue to expect a go-slow approach as the pandemic fades, subject to inflation developments. Our baseline remains liftoff in April and a total of three hikes next year, each of 25 basis points.” -- Andrew Husby, economist
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How do you finance a home that needs repairs
Guest Post | Dec 7, 2021
Image: Unsplash
Having a comfortable home is one of the things we take for granted until all of a sudden it needs a repair. Repairs often happen at unfortunate times namely a broken furnace in the middle of winter. Reports show that 12% of Americans aren't prepared for an immediate cost of 400$ and every homeowner has to spend an average of almost $5000 on home repairs every year.
So how can you pay for such costs? If you have a pile of savings, that's okay. But on the condition that you don't have and you don't want to take a hit on your monthly budget; here are some ways you can finance a home repair.
Personal Loan
If you want to settle the issue with low risk then a personal loan can be your best option. Your credit determines if you are qualified for a personal loan and the interest rate you will pay. Better credit history and score may help you get a loan with a lower interest rate. A personal loan is often unsecured as sometimes it may not be backed by any collateral. Depending on the lender, you can borrow $1000 up to $100,000 from Banks, Credit Unions, or Online lenders. The main advantage of personal loans is that they are issued quickly, normally within a few days.
Home Equity Loans
Home equity loans are best suited for using your home value. You can borrow up to 85% of your home value through this excluding mortgages. In a normal sense, if your house is worth $400,000 and you have a remaining mortgage of $300,000; thus you can get up to an $85,000 loan. You will get a lump sum with a fixed interest rate to pay within 5 to 15 years.
You may consider taking this loan if you want to make a big change to your house like changing your roof. Otherwise, it's risky as you are using your house as collateral. If your loan gets defaults, you will lose your house in no time.
Home Equity Line of Credit (HELOC)
Home equity line of credit and home equity loan are similar as they both use the home as your collateral. But in HELOC instead of getting a lump sum, you use your home equity on your need basis. HELOC loan works in two stages. You can borrow as per your need during the loan period, paying interest on the amount you borrow. But you will have to pay the entire loan after hitting the maximum amount of loan you can borrow or your loan period ends. In a nutshell, HELOC works like a credit card.
FHA 203(k) Loan
FHA 203(k) loan can be used to buy and repair a fixer-upper(a home that needs repair) or to renovate your existing house. Its interest rate is higher than the general FHA mortgage.
You will need credit scores of at least 580 to get a 203k loan although a score of 620-640 is for some lenders. Besides, FHA demands a 3.5% down payment for a loan of up to 110% of your equity value after renovation.
The main benefit of a 203k loan is it offers lower interest rates than personal loans or credit cards. But if you need quick cash then 203k mightn't be your best option as it requires some time to do the paperwork.
FHA Title 1 Loan
FHA Title 1 loan is also backed by the federal housing administration. If you need a small renovation or quick repair, a title 1 loan can help you borrow up to $7500. It is an unsecured loan. You will require a debt-to-income ratio 0f 45% or less to be eligible for an FHA Title 1 loan and you must live in it for at least 3 months if the property is a residence. The advantage of it is that no minimum credit score is required and the interest rate is usually low.
Alternatives to Home Repair Loans
Cash-out Refinancing
Cash-out refinancing allows you to take advantage of your home equity by replacing your home loan with a bigger mortgage. It can be a clever move if you can lower the interest on your primary mortgage and make the best use of the funds.
Reverse Mortgage
A reverse mortgage allows homeowners ages 62 and older to take a lump sum or a line of credit against their home equity. But unlike mortgages in which the lenders take payments from the homeowner; in a reverse mortgage, the homeowner takes the payment from the lender.
Credit Cards
You may get a loan from a credit card with a 0% introductory interest if you have good credit. It can be beneficial to be the use of minor repairs. If you can clear the loan within 12 to 18 months then there won't be any interest charged. For bigger repair, you shouldn't consider taking a loan with credit cards as if you fail to clear the loan within introductory periods, you may end up paying 15% APR which is an average of every credit card available.
If you are a homeowner then home repairs are inevitable. The best way to avoid taking any kind of home repair loan is to be prepared. House consultants advise saving 1% of your house equity for unexpected repairs.
If you want good consultancy and more information about financing home repair, visit reliabledp.com
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Crypto-tax primer in Canada
Investment Executive | Gail J. Cohen | Nov 25, 2021
Whether earnings from crypto are considered business income or a capital gain depends on the holder’s behaviour
Investing in cryptocurrencies is becoming more mainstream, particularly in Canada with its supportive regulatory environment for new and innovative financial products.
The Canada Revenue Agency generally treats cryptocurrencies as commodities, not currency (the same goes for the U.S. Internal Revenue Service). Therefore, “any income from transactions involving cryptocurrency is generally treated as business income or as a capital gain, depending on the circumstances,” the CRA states.
And when crypto is used to “pay” for goods and services, the CRA considers someone to be bartering, and “not reporting income from such transactions is illegal.”
See: Foreign property tax implications associated with owning cryptocurrencies
But the tax treatment of cryptocurrency is “an evolving situation,” said Mehran Sedigh, a CPA and managing partner at Triple M Professional Corp. in Richmond Hill, Ont. In his experience, crypto “was getting treated as a commodity, but now it is being treated as a liquid asset of some sorts,” he said.
Whether earnings from crypto are considered business income or a capital gain depends a lot on the holder’s behaviour, said Sedigh. For a long-term holder, crypto is more likely to be treated as a capital asset (and earnings as a capital gain). But if the holder actively trades crypto, then crypto is more likely to be considered active business inventory, with any earnings considered business income, Sedigh said.
Which events are taxable?
Owning cryptocurrency itself is not taxable. But, according to the CRA, there could be tax consequences for doing any of the following:
- selling or gifting cryptocurrency;
- trading or exchanging cryptocurrency, including disposing of one cryptocurrency to get another cryptocurrency;
- converting cryptocurrency to government-issued currency, such as Canadian dollars;
- using cryptocurrency to buy goods or services.
See: Liberals’ new bank surcharge tax on profits over $1 billion could be implemented by start of 2022
For example, say your client owes their accountant $50,000 and pays the accountant in Bitcoin. The client bought one coin when it was worth $30,000 and it’s now worth the full $50,000 of that accountant’s bill. “That $20,000 increase in value, from the time you purchased it to the time that you paid the bill with it, would be considered a gain,” Sedigh said.
The big question is whether that $20,000 gain is income or a capital gain.
The CRA would consider the gain to be business income if the activities the client engaged in “involve some regularity or a repetitive process over time.” Those activities could include cryptocurrency mining and trading, as well as creating and selling non-fungible tokens, Sedigh said.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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