L
lr1937
Guest
Forget my last post as it appears that you have talked with management.
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You should upgrade or use an alternative browser.
U
upsadvisor
Guest
FYI to all:
UPS will report 1st quarter earnings Thursday April 18th at 8:00 AM
At 10:00 AM Scott Davis will host a listen only investor conf call / Web cast.
To listen to the call :
1. Go to www.UPS.com
2. Select A Web Page
3. Click on Investor Relations
4. Click on Earnings Webcast
This info was reported over the business news wire.
John
UPS will report 1st quarter earnings Thursday April 18th at 8:00 AM
At 10:00 AM Scott Davis will host a listen only investor conf call / Web cast.
To listen to the call :
1. Go to www.UPS.com
2. Select A Web Page
3. Click on Investor Relations
4. Click on Earnings Webcast
This info was reported over the business news wire.
John
L
lr1937
Guest
I am sure the teamsters will probably counter this with their own counter press release and scare off a few more customers.
U
upsadvisor
Guest
If you have Non Qualified Stock Options that you are considering exercising here are some things to keep in mind.
There are several ways to go about doing the exercise.
The easiest and most expensive way would be to sell some of your UPS shares to cover the exercise.
The problem with this is in addition to the taxes due on the exercise you would create a Capital gain on the sale of your UPS.
In effect creating two tax hits needlessly.
Another option would be to exercise and sell enough shares ( from the option grant ) to cover the taxes and the cost of the exercise.
Ex. Grant 2000 shares at $15.00
Cost of exercising = 24,000
Taxes = $20,000
Sell 800 shares proceeds $44,000
( these numbers are fictional )
Since you would be taxed at your ordinary income rate upon exercise any way the additional sale does not incur any additional tax.
The result would be a partial sale and you would be left with 1100 shares from the original 2000.
Now if you would like to hold all of the shares from the option grant you still have an option that will avoid the need to sell UPS and generate a Capital gain, you could borrow against your UPS holdings to pay for the exercise.
You would then have 2000 additional shares but your cost basis would be much higher and one year and one day form the date of yur exercise you could sell the shares needed to pay off the loan and pay long term capital gains of 20%.
Either way you are looking to avoid generating a large capital gain and holding all of the stock if that is what you would prefer.
You dont have to pay of the loan until you decide to.
Net, Net No capital gains tax, hold all UPS pay only ordinary income tax.
You can sell when you want if at all.
Some things to remember.
The exercise is taxed at your ordinary income tax rate. ( there is no way to avoid this )
Any stock sold on the same day to from the grant incurs no added tax.
Stock held 1yr and 1 day subject to cap gains tax of 20% ( only obviously if the stock goes higher than the price you exercised at )
If any one has any question, please post em here.
By the way this only applies to Non Qualified Options not Incentive Optons the tax treatment differs for ISO.
John
There are several ways to go about doing the exercise.
The easiest and most expensive way would be to sell some of your UPS shares to cover the exercise.
The problem with this is in addition to the taxes due on the exercise you would create a Capital gain on the sale of your UPS.
In effect creating two tax hits needlessly.
Another option would be to exercise and sell enough shares ( from the option grant ) to cover the taxes and the cost of the exercise.
Ex. Grant 2000 shares at $15.00
Cost of exercising = 24,000
Taxes = $20,000
Sell 800 shares proceeds $44,000
( these numbers are fictional )
Since you would be taxed at your ordinary income rate upon exercise any way the additional sale does not incur any additional tax.
The result would be a partial sale and you would be left with 1100 shares from the original 2000.
Now if you would like to hold all of the shares from the option grant you still have an option that will avoid the need to sell UPS and generate a Capital gain, you could borrow against your UPS holdings to pay for the exercise.
You would then have 2000 additional shares but your cost basis would be much higher and one year and one day form the date of yur exercise you could sell the shares needed to pay off the loan and pay long term capital gains of 20%.
Either way you are looking to avoid generating a large capital gain and holding all of the stock if that is what you would prefer.
You dont have to pay of the loan until you decide to.
Net, Net No capital gains tax, hold all UPS pay only ordinary income tax.
You can sell when you want if at all.
Some things to remember.
The exercise is taxed at your ordinary income tax rate. ( there is no way to avoid this )
Any stock sold on the same day to from the grant incurs no added tax.
Stock held 1yr and 1 day subject to cap gains tax of 20% ( only obviously if the stock goes higher than the price you exercised at )
If any one has any question, please post em here.
By the way this only applies to Non Qualified Options not Incentive Optons the tax treatment differs for ISO.
John
P
proups
Guest
spycmom: This isn't just a "praise UPS" site. If you were available to work Saturday, and management did not call you (were you at a phone where they could reach you?), then they owe you the money. This grievance isn't unusual, and should be able to be settled at the local level, with the Business Agent only getting involved if necessary. Good luck!
L
longups
Guest
upsadvisor, I have just retired and should convert the 1998 and 1999 ISO options. What is the best way to do that? I don't need the money now so I could wait 12 months and take a capital gain if applicable.
Any suggestions would help.
Any suggestions would help.
U
upsadvisor
Guest
longups,
The best way to exercise your ISO grants would be to exercise and hold the shares.
To avoid paying a short term capital gain you would need to :
1. Hold the stock for a period of 1 year from the date of the exercise.
2. Have held the stock for a period of two years from the date the options were granted.
If you were granted options in 1998 and 1999 you have met the first criteria of holding the stock for 2 years. If you were granted options in say 2001 and you exercised today you would need to hold the stock until 2003 to meet the two year holding period and the one year capital gain period.
This does not apply to you just wanted to show the difference.
You will need to hold your ISO options if you exercise today untill April 18 of 2003 ( 1yr and 1 day ) to get the long term capital gain treatment.
The bad news is in order to pay forthe exercise you need to either come up with the cash or borrow the funds.
You can margin the stock in the exercise but margin rates are rather high so I dont recommend that.
The other option is to borrow against the stock you already have using a HYPO based on LIBOR
the rate difference is 3 1/2 for LIBOR of 7% Margin.
You could hypo shares you have pay for the ISO exercise then after the new shares have been converted HYPO those shares and pay of the original HYPO to keep the older shares clean.
Not really necessary that you do that but if you like to keep things seperate.
In one year and a day you sell enough shares to pay off the HYPO and keep the remaining shares and pay Long Term Cap Gain.
The other option would be to sell some shares but you would be creating a long term cap gain now as well as a potential gain down the line.
The shares you currently own probably have a cost basis of $6 or so ( never sell these )Unlce Sam would love you to sell these shares.
I hope this is helpful, if it is not clear let me know and I will try to be more to the point.
John
The best way to exercise your ISO grants would be to exercise and hold the shares.
To avoid paying a short term capital gain you would need to :
1. Hold the stock for a period of 1 year from the date of the exercise.
2. Have held the stock for a period of two years from the date the options were granted.
If you were granted options in 1998 and 1999 you have met the first criteria of holding the stock for 2 years. If you were granted options in say 2001 and you exercised today you would need to hold the stock until 2003 to meet the two year holding period and the one year capital gain period.
This does not apply to you just wanted to show the difference.
You will need to hold your ISO options if you exercise today untill April 18 of 2003 ( 1yr and 1 day ) to get the long term capital gain treatment.
The bad news is in order to pay forthe exercise you need to either come up with the cash or borrow the funds.
You can margin the stock in the exercise but margin rates are rather high so I dont recommend that.
The other option is to borrow against the stock you already have using a HYPO based on LIBOR
the rate difference is 3 1/2 for LIBOR of 7% Margin.
You could hypo shares you have pay for the ISO exercise then after the new shares have been converted HYPO those shares and pay of the original HYPO to keep the older shares clean.
Not really necessary that you do that but if you like to keep things seperate.
In one year and a day you sell enough shares to pay off the HYPO and keep the remaining shares and pay Long Term Cap Gain.
The other option would be to sell some shares but you would be creating a long term cap gain now as well as a potential gain down the line.
The shares you currently own probably have a cost basis of $6 or so ( never sell these )Unlce Sam would love you to sell these shares.
I hope this is helpful, if it is not clear let me know and I will try to be more to the point.
John
B
brown35
Guest
Does anyone have the telephone number to dial in and listen to the conf. call at 10am ????
U
upsadvisor
Guest
Brown35
I listed the phone number and the contact person under the post titled "UPS 1st Quarter Earnings "
As far as I know this is a web cast.
John
I listed the phone number and the contact person under the post titled "UPS 1st Quarter Earnings "
As far as I know this is a web cast.
John
U
upsadvisor
Guest
The conf call is today at 10AM
John
John
L
longups
Guest
Thanks John, That's what I needed.
U
upsadvisor
Guest
longups,
Glad to help.
John
Glad to help.
John
F
feederdude
Guest
Since we changed banks, does anyone have the web address to gain access to the stock holdings that first union was handling?
Thanks,
Feederdude
Thanks,
Feederdude
R
rshoe4056
Guest
You will need to log on as before, but do not put the last two zeros on your SS number.
F
feederdude
Guest
rshoe4056, Thanks for the info.
feederdude
feederdude
A
anonymous
Guest
live life to the fullest, take a chance, explore every opportunity, you'll
never know when your life will be forever changed//// my wife passed away 1
month ago//she was 39 years old//I've been on leave for the past 5 weeks//12
and 9 year old daughters//any suggestions/
never know when your life will be forever changed//// my wife passed away 1
month ago//she was 39 years old//I've been on leave for the past 5 weeks//12
and 9 year old daughters//any suggestions/
M
moreluck
Guest
My heart goes out to you, Anonymous. Your daughter really needs you now. Just love each other and think of the happy times and memories of mom.
You are definitely right about living life to the fullest. None of us knows how long we have here.
Again, my deepest condolences to you and your daughter.
You are definitely right about living life to the fullest. None of us knows how long we have here.
Again, my deepest condolences to you and your daughter.
L
longups
Guest
That is terrible news to hear for anyone at anytime! Please look forward to the future and the good times you will have with your daughters.
I retired 4 months ago and within 3 weeks of that, before my last check came in, my wife was diagnosed with stage II breast cancer. Life is not fair!
Try the United Way for suggestions, they may not be able to offer direct assistance but will direct you. Also, try to take your daughters on a short trip this summer.
I retired 4 months ago and within 3 weeks of that, before my last check came in, my wife was diagnosed with stage II breast cancer. Life is not fair!
Try the United Way for suggestions, they may not be able to offer direct assistance but will direct you. Also, try to take your daughters on a short trip this summer.
U
upsadvisor
Guest
I am so sorry to hear about your loss.
life can be very unfair. I hope you can take some comfort in the knowledge that your wife is in a better place and whatever purpose God had for her in life I am sure she fulfilled to the highest level and it was time for her to go home to be with him.
My prayers are with you and your daughters.
I think the first thing you need to do is find someone to talk to and heal, then you will be able to make some of the tough descisions you will need to make to help plan your families future.
I would be honored to help in any way possible and I am sure the other members here feel the same. If you have any questions you want to post or email please let us know.
This is a community and we will pull together to help any and all who need it.
John
life can be very unfair. I hope you can take some comfort in the knowledge that your wife is in a better place and whatever purpose God had for her in life I am sure she fulfilled to the highest level and it was time for her to go home to be with him.
My prayers are with you and your daughters.
I think the first thing you need to do is find someone to talk to and heal, then you will be able to make some of the tough descisions you will need to make to help plan your families future.
I would be honored to help in any way possible and I am sure the other members here feel the same. If you have any questions you want to post or email please let us know.
This is a community and we will pull together to help any and all who need it.
John
L
lil_wildcat
Guest
I am so sorry to hear about your loss. I know it must be a very hard and trying time right now for you but please know that our heart and prayers are pouring out to you and your kids. If there is anything that we can do....just let us know
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