Talking stocks, trading, and investing in general

[Texasmade]

Unless I was contractually required to hold a certain amount, I'd probably sell a portion of the RSU's every year provided I get a new tranche being partially vested.

 

[budapest12]

Are you getting taxed on vesting? If so all the more reason to sell to at least cover tax if not more. Lmao over hearing about the volfefe index.

 

[otc]

Depends on your level within the company. Senior Mgmt usually have target company holdings they need to adhere to. If you are a lower level employee? I'd diversify by selling as my job is already a risk. Maybe hold 5-10% of your net worth in company stock if you really want to.

On the opposite side of my argument, a lot of grad school friends joined Amazon and Google when we graduated in 2010. They got RSUs and sold off pretty early and had sellers remorse but you gotta remind them those shares could have gone to $0 so they at least locked in some gains.

Yeah, depends on the stage of the company.

Established stable firm? I'd definitely adhere to "job is already a risk, take the shares at a discount and then diversify"

Startup-ish firm (where I'd lump 2010 amazon/google even though they were established companies at that point) and the calculus changes. Your job is still a risk, but isn't explosive stock growth sort of the thing you are hoping for when you work for a company at that stage? If you have the risk appetite to work for one of those firms, you might also have the appetite to hold the shares.

 

[patrickBOOTH]

At my company if you sell they give you the net of taxes. Also if you want to keep the shares they will sell a portion to cover the tax liability.

 

[jbarwick]

Well when you come out of the GFC and your RSUs double in value pretty quickly in the case of AMZN, it seemed like a no brainer to sell at $350-$400 and it was a plus to sell some over $400. No one was thinking of a Trillion $ company when a few hundred billion was the largest company.

 

[patrickBOOTH]

I have a couple of questions for the thread that I am curious of people's thoughts on:

1. Let's say you win a lawsuit and you have a nice chunk of money landing in your lap, say $300k. Is there any way you can protect that from income taxes? Maybe set up some sort of trust or something?

2. Let's say for whatever reason a sizable chunk of money lands in your lap, not enough that you could retire off of (for many of us), but a nice chunk say $700k. How would you invest it?

 

[Piobaire]

There's lots of ways to tax shelter money but they usually come with a cost of some kind or another and that cost is often lack of returns. I mean, deferred annuity will do it, but return is for **** and there's administration fees on top.

 

[brokencycle]

I have a couple of questions for the thread that I am curious of people's thoughts on:

1. Let's say you win a lawsuit and you have a nice chunk of money landing in your lap, say $300k. Is there any way you can protect that from income taxes? Maybe set up some sort of trust or something?

2. Let's say for whatever reason a sizable chunk of money lands in your lap, not enough that you could retire off of (for many of us), but a nice chunk say $700k. How would you invest it?

1. Simple: don't report it.

2. Parlay it at the casino until you have enough to retire.

 

[patrickBOOTH]

By "chunk of money landing in your lap" I don't mean literally. You get handed a check.

 

[imatlas]

Deposit it in a Swiss bank account and lie on your taxes?

 

[brokencycle]

By "chunk of money landing in your lap" I don't mean literally. You get handed a check.

Oh, in that case:

1. Cash the check. Don't report it to the IRS.

2. Cash the check at the casino. Parlay it on your game of choice until you have enough to retire.

 

[jbarwick]

1. Personal injury awards aren't taxed. If some other award, talk to your accountant but it will likely be taxed.
2. We have thought about this. Invest at least 50% in a manner similar to our retirement so 80/20. The rest would be a mix of some home improvements, college savings, and vacations.

Home improvements could eat up $100K, same with $100K each for college savings, $50K could help with vacations as we similarly have a bucket for that. This would then free up a lot of monthly savings which we save a little in each of the above buckets already.

There were some family issues relating to inheritance in my life so if that piece of the family ever decided to give me anything, it would go to my nephews since my brother passed away.

 

[budapest12]

Most personal injury awards aren’t taxed as per the above but it’s a pretty strict/limited standard. Otherwise you can bet your *@$ the party paying you is reporting on a 1099-misc or other appropriate form so IRS will be aware.

 

[Piobaire]

I loathe people that get inheritances and stuff.

 

[Texasmade]

I'd invest in a brand new AMG GTC or maybe in sandwiches. The sandwich heavy portfolio pays off for the hungry investor.