Author Topic: Am I FIRE'able  (Read 9889 times)

lhamo

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Re: Am I FIRE'able
« Reply #50 on: October 15, 2017, 12:19:46 PM »
Oh as to company stock I used to work a fortune 500 company.. So famous that the founders actually STARTED silicon Valley in a garage across the street from Stamford University!

I used to hold all my $401k money in company stock and rolled in and out and made 36% in the one year I did that. (like it was up to $125k).

I decided I couldn't keep doing that and rolled into index funds...

The Stock back then was pushing $80.. Its now worth about $30.

OK not an Enron but even so, I am SOO GLAD I stopped playing that game..:)

I bought --and still hold -- a small amount of that stock in 1999-2000, before things tanked.  I think 2017 is the year I finally get to sell it and take the capital loss-- should save me a few hundred bucks in capital gains taxes....

My other big single stock investment mess up:  Worldcom.   

On the other hand, DH bought a bunch of Ebay and that + the paypal split has produced quite a nice return.

We don't do individual stocks anymore....

keyvaluepair

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Re: Am I FIRE'able
« Reply #51 on: October 15, 2017, 08:34:44 PM »
I agree with the general hubris of investing in employer stock. Most of the stock that I hold came in the form of a direct grant or in the form of 15% discounted stock that I acquired for the then stellar price of around $20 a share - the current MSFT is $77 with an estimated FMV of $83.

I absolutely plan to unroll the position. Now, here is my question: How does the mechanics of 3% drainage work? Do you take all of your non IRA money and then take 3% off the top? Something else? Sorry for asking such elementary questions.



PizzaSteve

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Re: Am I FIRE'able
« Reply #52 on: October 15, 2017, 09:53:16 PM »
I agree with the general hubris of investing in employer stock. Most of the stock that I hold came in the form of a direct grant or in the form of 15% discounted stock that I acquired for the then stellar price of around $20 a share - the current MSFT is $77 with an estimated FMV of $83.

I absolutely plan to unroll the position. Now, here is my question: How does the mechanics of 3% drainage work? Do you take all of your non IRA money and then take 3% off the top? Something else? Sorry for asking such elementary questions.
There is no one answer to this, I believe.   Some have dividends deposited into a checking instead of reinvested.  With typical index divident rates, this drains 2+%.  Some sell bits of stock or bonds, as needed, either once per year or month. 

Your taxes and capital gains status might also impact what you sell.  If supported, one could even write checks against a margin loan or a line if credit, and sell stocks later to paid off pushing gains to future tax years, but others may have more specific links to suggest.

keyvaluepair

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Re: Am I FIRE'able
« Reply #53 on: October 16, 2017, 09:16:54 AM »
This seems to be of enough generality that I might ask on the wider forum....