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Network with other Minority Mindset thinkers.

Tagged With "gains"

Tagged With "gains"

  • Topic Reply
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    It feels like the headline I see everyday is that the stock market rose on investors hope for the next stimulus bill or something similar. Obviously a lot of how the market is valued is based on how people feel but it seems like too much value has been placed on that recently and not enough on how companies are actually performing. Makes me think it can't continue like this forever but at the same time I don't know if that necessarily means a big drop in the market.
  • Taxes
    I am facing a tax issue, but let me preface it by saying this is a good problem to have. I have been blessed to see some massive gains in one particular stock I hold in my portfolio. My plan is to use these gains to completely pay off my mortgage (I told you they were massive) which will be liberating on a level that I cannot explain. The small issue (good problem) is that this will lead to a huge tax liability and possibly push me into another tax bracket. I have held the positions longer...
  • Topic Reply
    I wouldn't let the chance of temporarily moving into a higher tax bracket dissuade you from your goal of paying off your mortgage. As time goes by your high performing stock could fall back down in value and spoil your plans. However, if you are really keen on not being bumped into a higher tax bracket and you feel pretty sure the stock will maintain its value, you could always sell a certain percentage of the stock this year that still keeps you in your current tax bracket. You could then...
  • Topic Reply
    I'm going to assume there is no penalty for early prepayment because that's a bit unusual. If it is, it would completely change the calculation. For longterm capital gains, you get the first $10,000 for free, then it's 15% up to $500k, then it's 20%. Your mortgage probably is lower than 5% interest, so it doesn't seem worth it to pay more than 15%. The numbers completely define the answer. Here is an example If you owe $200k on a mortgage, then you can just pay the 15% on $190k which is...
  • Topic Reply
    Thanks for the thorough evaluation with some numbers to support it. You offered a lot of info which I appreciate. I think the interest over the next 30 years compared to the tax liability for this one year makes it clear. I have decided to sell off shares each month to pay off the mortgage by year's end. I am also setting aside a portion of the proceeds for taxes due next year. This will be a huge milestone for me and increase my monthly cash flow in order to start new investments. Thanks...
  • Topic Reply
    Thanks for the reply. You make several great points. I definitely don't want a fall in the stock price to spoil my plans. I have already seen some correction. I have decided to sell off shares each month for the next several months and retire the mortgage by year's end. I am offsetting my tax liability by increasing contributions to my traditional 401k and 457b plans. I really appreciate the sound advice. I will post back here to let you know how it turns out.
  • Topic Reply
    If you are going to pay the taxes, you might as well take the profit right away, and put the money to reducing the interest. No sense in waiting for the money to accrue more interest.
  • Topic Reply
    For every type of tax strategies, I will suggest you to do consult with Coast One Tax Group . They will guide you better about tax strategies.
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