3 Costly Mistakes to Avoid When the ServiceTitan Lock-Up Ends (and What to Do Instead)

ServiceTitan’s 180-day lock-up period ends on Tuesday, June 10, 2025. For many employees, this is the most significant financial event they’ve faced to date.

As a financial advisor who works with tech professionals across the equity lifecycle, I’ve seen that the biggest opportunities are also the most vulnerable to poor planning. Below are three mistakes I help clients avoid—and the steps you can take now to protect and grow your equity proceeds.

Mistake 1: Holding Out for “Just a Bit More”

It’s natural to think, “Why sell now?” especially after watching your shares rise through the private years and IPO.
But the long-term data tells a different story:

• A University of Florida study shows that newly public companies underperform the market by 18% on average over their first 3–5 years
• IPOs that start strong often face slower, uneven growth once public scrutiny kicks in and insider selling begins.
• Diversified portfolios historically deliver more consistent returns with less volatility.

Action Plan:

• Establish your exit criteria—what number or outcome would make you feel confident cashing out.
• Stage exits using limit orders to take emotion out of the decision.
• Reinvest with purpose: emergency fund, debt reduction, real estate, or diversified investments.

Mistake 2: Selling Without Understanding the Tax Impact

The timing of your sale has a major effect on how much you keep.

Capital Gains Matter:

• Short-term gains (<1 year): taxed at your ordinary income rate—up to 37% federally, plus 13.3% in California.
• Long-term gains (>1 year): taxed at preferential rates of 0%, 15%, or 20% federally, plus state tax.

Selling too early or selling the wrong lots could push you into the top tax bracket and leave you with just half your proceeds after taxes.

If you have ISOs, you must meet the qualified disposition timeline to get long term capital gain tax treatment:

• Hold shares ≥ 2 years from the grant date and ≥ 1 year from the exercise date.
• Otherwise, the sale triggers ordinary income tax.

Action Plan:

• Calculate your gain before selling.
• Calculate how it impacts your AGI and tax bracket.
• Set aside enough for taxes in a separate account.

3. Selling Without a Financial Plan

One of the biggest mistakes I see after a liquidity event is selling without a plan for what to do next.

If you’re not clear on what matters most to you—financially and personally—it’s easy to let cash sit idle or, just as often, disappear into spending that doesn’t move you forward.

Start With What’s Important to You

Before you sell, take a step back and define what your priorities are. Is it stability? Home ownership? Reducing financial stress? A plan isn’t just about numbers—it’s about aligning your capital with what you value.

Build a Framework to Allocate Proceeds

Once you have clarity on your goals, use a simple tiered structure to assign every dollar a purpose:

Stability First

• Fund or top off your emergency savings (3–6 months of expenses).
• Pay off high-interest debt—this is a guaranteed return.

Fund Near-Term Goals

• Save for purchases in the next 1–3 years: down payment, car, parental leave, etc.
  Keep this money in lower-risk accounts.

Invest for Long-Term Growth

• With the rest, build a diversified portfolio for future goals—retirement, education, or financial independence.

This structure keeps you focused, reduces decision fatigue, and aligns your money with your values.

Ready to Optimize Your ServiceTitan Exit?

If you’re a ServiceTitan employee navigating the lock-up expiration, I’m offering free 15-minute Tax Clarity Calls specifically designed to help ServiceTitan employees strategize their next financial moves.

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