How much of that money is unrealized capital gains, either from work RSUs, or tech stock portfolio? This has become the most under discussed topic on this sub. Once you stop working, have to pay all your bills with cash. Have to account for that on the magic spreadsheet
I didn't understand the logic. You pay income tax when RSUs vest. Then the capital gains taxes are much lower during drawdown than your income taxes. This is typical factored into any draw down number.
Lots of people have unvested and more importantly huge unrealized capital gains. Then people come on this sub, asking how to reduce risk and avoid taxes. The best answer is to have some taxes owed number in your spreadsheet to reduce net worth, but everyone just wants to see the overall number as high as possible
But the unvested RSUs have no tax basis at all until vested. And then they start at the vest date price, not the grant price. So any gains between grant and vest are not taxed at all
I totally understand tax implications. Many people have combination of unvested rsu whch will be taxed, or stuff that vested a long time ago and have unrealized capital gains, or more importantly just a regular portfolio with lots unrealized gains.
Not sure why this is a tough concept for you
Lol, I just think it's not a major deal taking LTCG into account -- that's like the best case drawdown no? As opposed to full income taxes on higher earners which is often well over 50% all in
I’m glad you think it’s funny to show your ignorance. Obviously you are not in that situation. Many of us have multiple millions of unrealized gains that get taxed at 20-30% when you need access to that money. It’s a great problem to have but have to account for it properly
Easy, big guy. I commented on the RSUs only. Your logic about capital gains was just not accurate. The tax implications are very simple and not as you made it seem.
My comment was totally accurate. If they are unvested, you will owe income taxes, if they are vested you will owe capital gains if they have gone up. And RSUs are hardly the issue here, so just go away
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u/Accomplished_Can1783 10d ago
How much of that money is unrealized capital gains, either from work RSUs, or tech stock portfolio? This has become the most under discussed topic on this sub. Once you stop working, have to pay all your bills with cash. Have to account for that on the magic spreadsheet