UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: DownwardSpiral One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75776  
Subject: Re: all in one stock Date: 12/4/1998 6:40 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<Pixy replying to Jeffbuck about a major portion of assets in company stock (&options).>>

I agree with you 100%, Pixy, about the "sleep factor" of having so many eggs in one basket. But, depending on a lot of factors, at least SOME of the tax bullet could be dodged...

--in a 401(k), I beleive that the capital gains can be postponed in some cases when the company stock is moved out of the 401(k)

--if you are charitable, donating appreciated stock gives you the full deduction & you avoid the capital gains

--if some of this is left over for the estate, the heirs get the stepped-up basis of value at death.

Even with these possibilities, it is pretty scary to hope that the company's stock price would never crash in the 50 years until it is part of the estate. I would probably diversify as much as practical, or maybe a portion each year.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.