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Originally Posted by XLexusTech
More info I average in bi monthly with purchases 24 times a year in my vanguard mutual fund accounts... The big chunk is a result of some stock based compensation via my employer I cached out roughly 50 percent of the vested and have more vesting over the next year so I cashed out to reduce risk of having that money in one stock. So now I have a lump of cash to invest if I find good candidates
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I love stock options! It's free money!
Did I ever write about my 20 million dollar Grand Banks?? LOL ---- oh long story... or the 30 million dollar house I bought for 177 grand?
Goes back to my wife being a Director level at Microsoft beginning in 1984... and me being the safe one -- I wanted to pay cash for stuff... and the stock options were free money. Better to have a paid for house and boat than to have that stuff and watch the stock go in the tank... so I sold along the way. Well -- that made me miss out on the 10,000% gains those shares had. Mind you -- we had a couple million shares... so I didn't exactly go broke with that strategy either. LOL
Remember something about OPTIONS -- they're PURE INCOME -- and when you sell -- that amount is added to your income -- and you owe taxes on that - as well as the higher tax rate on all the other income in your household. So be certain to "account" for that hit. Best course of action there is to have them withhold max bracket rate --- and get a nice check back --- rather than owe huge and have to sell another batch to pay the taxes with - which adds to your income the following year and down that path you go. Trust me on this one.