Love these example videos. Still hoping for one about having nearly all of your portfolio in pre-tax. Recently watched a video about the subject from the Jazz Wealth Managers channel and would be interested to see your take on this scenario. Thanks Ari.
Thanks Ari for another very informative video! Divesting some of my stock of a prior company stock is one of the things that I feel that I should do. But I have to think about when the best time to do it is since I will need to buy health insurance the first year of retirement and would like to keep my income low enough to get the insurance through the Market Place.
One other thing about those of you holding company stock in your 401k (Ari has talked about this before IIRC) when you convert your 401k to an IRA, make sure you understand what Net Unrealized Appreciation (NUA) and the tax consequences, that can save you a significant amount in tax exposure.
This is really useful information. The stock market has done well. And if your equity heavy things are looking pretty good. But even owning the same amount in an S&P 500 index fund has risks in the down years. I would be curious to see how this works if you own shares across the Magnificent 5 or 6 with a concentration in one, say 50% in MSFT
Jeremy is a weird dude. He's at the end of his career somehow only making $250k at Microsoft. He has no taxable account but $4M in MSFT stock? Has he been dumping all of his money into that stock? But the most interesting thing is that he only wants to spend $5k a month in retirement on day-to-day expenses. Weird, weird dude.
@@patienceisalphait's not much crazier than most big IT, 10% discount and capped at IRS limit... Sure you can get a lot of stock that way, but having zero taxable investment at the same time?.. I don't know.
@@alk672 MSFT is peculiar in the sense that you get the ESPP deposited in shares (as expected) but also your RSU grant (there is no ways to get the cash directly, unlike from my time at AMZN where you could elect to sell directly). Effectively your fidelity account gets shares deposited every quarter between RSU vest and ESPP and other grants. I saw many oldtimers never sell any shares when I worked for MSFT. litterally not selling for a decade+ and just living on base + bonus
@@FaronFLKN that and the RSU vesting in MSFT stock always (no sell to cash option). unlike AMZN where you can choose to autosell for cash. Hence many old timers with large ESPP/RSU positions
Love these example videos. Still hoping for one about having nearly all of your portfolio in pre-tax. Recently watched a video about the subject from the Jazz Wealth Managers channel and would be interested to see your take on this scenario. Thanks Ari.
Ari would love to hear analysis on Accenture stock!
Worst case you forgot 13.3% CA state marginal tax as CA does not have capital gains tax. So it is 23.8 + 13.3 = 37.1%
Thanks Ari for another very informative video! Divesting some of my stock of a prior company stock is one of the things that I feel that I should do. But I have to think about when the best time to do it is since I will need to buy health insurance the first year of retirement and would like to keep my income low enough to get the insurance through the Market Place.
Holistic planning FTW!
One other thing about those of you holding company stock in your 401k (Ari has talked about this before IIRC) when you convert your 401k to an IRA, make sure you understand what Net Unrealized Appreciation (NUA) and the tax consequences, that can save you a significant amount in tax exposure.
Faron’s speaking my language now! Love it.
This is really useful information. The stock market has done well. And if your equity heavy things are looking pretty good. But even owning the same amount in an S&P 500 index fund has risks in the down years.
I would be curious to see how this works if you own shares across the Magnificent 5 or 6 with a concentration in one, say 50% in MSFT
Glad it helped. Will make a new video on that!
Jeremy needs to think about quite a few things. IRMAA, NUA, Roth and taxes galore especially since he's single.
Lots of planning opportunities:)
Why no one talks about AMT in these examples?
I’ll do a separate video on it!
@@earlyretirementariThank you so much. Love the channel!
Love the content Ari but.... don't you own clothes other than just that same shirt and cardigan? 😂
I’ll go on a spending stree as long as it’s within my withdrawal strategy..
Jeremy is a weird dude. He's at the end of his career somehow only making $250k at Microsoft. He has no taxable account but $4M in MSFT stock? Has he been dumping all of his money into that stock? But the most interesting thing is that he only wants to spend $5k a month in retirement on day-to-day expenses. Weird, weird dude.
MSFT has a crazy ESPP program. Many employees kept their stocks over years
@@patienceisalphait's not much crazier than most big IT, 10% discount and capped at IRS limit... Sure you can get a lot of stock that way, but having zero taxable investment at the same time?.. I don't know.
@@alk672 MSFT is peculiar in the sense that you get the ESPP deposited in shares (as expected) but also your RSU grant (there is no ways to get the cash directly, unlike from my time at AMZN where you could elect to sell directly).
Effectively your fidelity account gets shares deposited every quarter between RSU vest and ESPP and other grants.
I saw many oldtimers never sell any shares when I worked for MSFT. litterally not selling for a decade+ and just living on base + bonus
@@patienceisalpha they can put up to 10% in ESPP, and for a long time we (i'm former MSFT too) could own MSFT in the 401k as well.
@@FaronFLKN that and the RSU vesting in MSFT stock always (no sell to cash option). unlike AMZN where you can choose to autosell for cash. Hence many old timers with large ESPP/RSU positions