mathematics
Well-Known Member
you're keeping it until reirement, but it's not part of your long-term portfolio?
1
you're keeping it until reirement, but it's not part of your long-term portfolio?
1Actually i THINK there is a way to pull your money out before the 2 year limit so if I REALLY needed it i could get to it...Yes there would be a penalty of some sort or maybe you dont get the 10% discount but how is that any different than put your money in a 2 year CD? If you pull it out early you pay penalties.
Two years is'nt THAT long a time really, put the money away forget about it, and then years later you have it... I guess it's not a NORMAL way of doing the stock market, but if you treat it as a IRA account or even a 5yr CD....
It's a chance i guess... maybe i'll be on here in 2 years telling you i should have listened. The world is suppose to end on Dec 21, 2012 also so if that's the case it wont matter where you put your money
Two years is'nt THAT long a time really, put the money away forget about it, and then years later you have it... I guess it's not a NORMAL way of doing the stock market, but if you treat it as a IRA account or even a 5yr CD....
It's a chance i guess... maybe i'll be on here in 2 years telling you i should have listened. The world is suppose to end on Dec 21, 2012 also so if that's the case it wont matter where you put your money
upsgrunt
Well-Known Member
Actually i THINK there is a way to pull your money out before the 2 year limit so if I REALLY needed it i could get to it...Yes there would be a penalty of some sort or maybe you dont get the 10% discount but how is that any different than put your money in a 2 year CD? If you pull it out early you pay penalties.
Two years is'nt THAT long a time really, put the money away forget about it, and then years later you have it... I guess it's not a NORMAL way of doing the stock market, but if you treat it as a IRA account or even a 5yr CD....
It's a chance i guess... maybe i'll be on here in 2 years telling you i should have listened. The world is suppose to end on Dec 21, 2012 also so if that's the case it wont matter where you put your money
Hey Leddy,
Where's your source for that end of the world date? Just interesting to me, that's all.
BigBrownSanta
Well-Known Member
My check stub also said DESPP Regular, but it wasn't pre-tax. You may want to check on that to be sure.
mathematics
Well-Known Member
i just listed all the pre-tax deductions, my medical, 401(k), united way, and despp
BigBrownSanta
Well-Known Member
I think you are misinterpreting Deductions.
I don't believe it means pre-tax deductions.
It's more likely a list of all deductions from your paycheck.
The pre-tax deductions will only show on your W-2 at the end of the year.
I hope you're not banking on that tax refund.
I don't believe it means pre-tax deductions.
It's more likely a list of all deductions from your paycheck.
The pre-tax deductions will only show on your W-2 at the end of the year.
I hope you're not banking on that tax refund.
mathematics
Well-Known Member
i took my total earned and subtracted the "deductions" and came up with an amount. then i subtracted the taxes and came up with the same net pay. this shows that despp is pre-tax.
1989
Well-Known Member
This is on page 8 sec.18 of the DESPP prospectus. You are only taxed on your gains. First 10% as ordinary income anything over as long term capital gain. Because you already paid tax on your purchases.
If you hold your shares for two years from the beginning of the purchase period (the ""statutory
holding period'') or longer and then sell your shares, then:
‚ any gain up to 10 percent of the fair market value of the shares at the beginning of the
purchase period is taxable as ordinary income, and any further gain is taxable as long-term
capital gain; and
‚ any loss is treated as long-term capital loss.
If you hold your shares for two years from the beginning of the purchase period (the ""statutory
holding period'') or longer and then sell your shares, then:
‚ any gain up to 10 percent of the fair market value of the shares at the beginning of the
purchase period is taxable as ordinary income, and any further gain is taxable as long-term
capital gain; and
‚ any loss is treated as long-term capital loss.
BigBrownSanta
Well-Known Member
You said earlier that you had a B.S. degree in Applied Math, so I hope you understand what I am about to say...
I deducted my union dues (BTW, union dues are not pre-tax) from my gross pay, and came up with an amount. I then subtracted my total taxes. I too came up with my net pay amount. It proves nothing.
Just out of curiosity, are you an OMS? This discussion reminds me of many of the messages I receive...
I deducted my union dues (BTW, union dues are not pre-tax) from my gross pay, and came up with an amount. I then subtracted my total taxes. I too came up with my net pay amount. It proves nothing.
Just out of curiosity, are you an OMS? This discussion reminds me of many of the messages I receive...
satellitedriver
Senior Member
Yep, 4yrs from now,I am going to retire.you're keeping it until reirement, but it's not part of your long-term portfolio?
I will have about 30k in that piggybank ,to spend like a drunken sailor.
It is just an account I created for the express purpose to be able to spend money on a whim. Just like the way I empty the coins from my pocket at days end and put them in a jar on the dresser.
The rest of my net worth has always been directed in a long term growth and income producing investments.
Dollar for dollar, I could invest it in other avenues and make a far better return.
But, I do not for the simple fact, I want to have some money earned through UPS that I can just piss off, instead of thinking only of my duties and responsibilities.
Sounds trite and selfish, but every dollar I spend of that money I will not feel guilty about.
The rest of my portfolio will take care of my obligations in the future.
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satellitedriver
Senior Member
Max out your ROTH IRA first. Max out your 401k second. Thirdly, if there is any extra cash left over, pay off as much debt as you can.
Debt is the worst poverty.
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moreluck
golden ticket member
S&P REITERATES BUY OPINION ON SHARES OF UNITED PARCEL SERVICE
UPS; $76.54
Chairman and CEO Mike Eskew is stepping down at the end of 2007, to be replaced by CFO Scott Davis. We would categorize the news as a mild surprise, but think there will be a smooth transition, and think Davis is a good choice. Under Eskew, UPS showed strong growth in revenues and earnings while overcoming missteps related to a shortfall in volumes during the 2005 holiday season and a salesforce reorganization in 2006. We liked Mr. Eskew's candor and communication style and expect this to continue under Mr. Davis's leadership. We maintain our 12-month target price at $89. /J. Corridore
UPS; $76.54
Chairman and CEO Mike Eskew is stepping down at the end of 2007, to be replaced by CFO Scott Davis. We would categorize the news as a mild surprise, but think there will be a smooth transition, and think Davis is a good choice. Under Eskew, UPS showed strong growth in revenues and earnings while overcoming missteps related to a shortfall in volumes during the 2005 holiday season and a salesforce reorganization in 2006. We liked Mr. Eskew's candor and communication style and expect this to continue under Mr. Davis's leadership. We maintain our 12-month target price at $89. /J. Corridore
raceanoncr
Well-Known Member
OK. I just showed all your posts to my 9-yr old granddaughter. Why? You've already called me ignorant, (well, you said to quit spreading my ignorance around), so I thought I'd ask somebody smarter.
She figured it all up and concluded that your stock deductions are NOT pre-tax. She said that this would make horrible sense. Why? When you sell some (now or in 30 yrs as you want to) you would be then taxed on entire purchase, I.E. your 10% deducted purchase price, your dividends, your gains, your entire stock selling price at the time. WOW! Sounds good!
She also took a look at my portfolio, zeroing in on UPS. I've been in since before the IPO. When it was in the 80's, near 85, I bought at middle 70's. Where is it now? Middle 70's. IF I were to sell these certificates now, would I make anything? Not a dime! Did your wizards at school teach you about cost-averaging?
Dividends at $.42 a share, with no growth? Not good!
Yeah, I'm dumb, but I think I'll listen to this 9-yr old.
raceanoncr
Well-Known Member
Nope. Entirely different.
mathematics
Well-Known Member
not if you have UPS stock in your 401(k)...directly, or indirectly
mathematics
Well-Known Member
I was wrong about it being pre-tax. Also, nobody put a gun to your head and made you buy company stock. if you don't like it, then sit it out and wait, or sell. the company has very good growth opportunities over the next 30 years, so i'm staying committed because, well, I'm only 25.
The wizards at school helped me learn how to make 36% YTD on my portfolio. But, hey, maybe your 9-year old daughter has a stronger intellect than me and can help you do better than that.
Anyway, I digress. My cost basis for my UPS shares is approx. $65. With the shares at 76, that's an approx. gain of 16 - 17%.
mathematics
Well-Known Member
actually, at $75.85 per share, my gain is 14.33% since 6/30/2006. would you like me to give you projections that include dividend increases?
satellitedriver
Senior Member
At the age of 25, any stock you purchase, that has solid fundamentals, will serve you well over a long time frame.
I can only hope that you do not fall into the trap of quick profit and trying to time the market. 20% win that game, but 80% lose.
You are already ahead of the game, just do your research and play the long term.
Glad to see that you are working for your future.
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