Holy Moly - AMD is over 550 a share! Never thought I’d ever see the day. My habit of not following it closely has paid off (on paper) again. Yes, the entire marked it juiced right now over the “not-war with Iran” on the verge of being over and close to the signing of a “peace deal” of some sort, but still…
3 Likes
You could always translate a little of that paper gain into actual gain, if you were so inclined… I might if I were you. A bird in the hand is a bird in the hand.
1 Like
But then you might have to pay taxes. Better to let heirs inherit at stepped up basis.
mmm… good point. I was just watching something about this.
Do you have any ability to borrow against the stock? Still trying to understand how that works 
Borrow against the stock? Yeah, I don’t know what that means, but it seems risky.
And in my case, 99% of my AMD is outside of any IRA or 401K, so whatever I sell would incur a 20% long term capital gain tax. That said, if I sold all my AMD now, even after that tax, I could live off the 3% interest on the resulting cash profit very well indeed.
1 Like
I looked into this a while back when we were hearing about how billionaires don’t have income to pay taxes on. It seems that there are some banks that will accept a giant stock portfolio as the collateral. The stocks are not sold, they stay in the billionaire’s account.
They seem to use the dividends from portfolio to pay some of the monthlies, but also all or some is paid from the giant loan they take out.
Then at the end of the loan period, the plan is that the value of the portfolio has grown enough that now they take out a bigger loan. Part to pay of the previous loan and then enough to “live” on.
Rinse and recycle. It truly is a completely different dimension they manage to live in.
1 Like