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Old 11-18-2011, 02:39 PM
 
Location: New England
82 posts, read 412,524 times
Reputation: 48

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Hi Everyone,

I have 50 shares of company stock that will be vesting and available to sell in Feb 2012 and another 66 shares vesting and available to sell in March 2012. So I will have a total of 116 shares that I will be selling by the end of March. I will be using this cash towards a down-payment for a home in Spring 2013. Any advice on where I should put this money after I sell? I would like to earn some short term interest but don't want to lose any of the initial investment I put in. I was thinking either savings or a money market?
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Old 11-18-2011, 02:53 PM
 
Location: Tigard, Oregon
863 posts, read 2,984,618 times
Reputation: 679
Quote:
Originally Posted by brightyellowhaha View Post
Hi Everyone,

I have 50 shares of company stock that will be vesting and available to sell in Feb 2012 and another 66 shares vesting and available to sell in March 2012. So I will have a total of 116 shares that I will be selling by the end of March. I will be using this cash towards a down-payment for a home in Spring 2013. Any advice on where I should put this money after I sell? I would like to earn some short term interest but don't want to lose any of the initial investment I put in. I was thinking either savings or a money market?

IDK, Short term interest rates are pretty low these days.

We sold company stock years ago. Truthfully, I forgot all the details and our CPA did our taxes. But I'd highly recommend putting about 50% aside or planning to pay about half in taxes. It might not be quite that much, but you'll be glad you did.
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Old 11-18-2011, 04:00 PM
 
Location: New England
82 posts, read 412,524 times
Reputation: 48
I believe my company's plan actually takes out the taxes when I sell so I don't have that shock during tax time. Do you know what the tax rate will be? I'm head of household so my federal tax bracket is 25%. Is that what would be taken out?
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Old 11-21-2011, 08:49 AM
 
Location: Tigard, Oregon
863 posts, read 2,984,618 times
Reputation: 679
Yea, I'm sure ours did too, but that's only part of it.

No, I'm not qualified to go into detail. I suggest get some professional advice. My point is your company may hold back the Federal Tax, but there are others may come into play into this and how affects your total tax obligation, including:

1. Capital Gains taxes - Short Term vs. Long Term
2. Alternative Minimum Tax
3. State Income tax

It's free money, but it does "cost" to collect. The few times we sold, we pocketed approx. 50%. OK, It may have been a little more, but I like to be conservative. I still suggest planning for that, if it's more, great!

I'd highly suggest using CPA this year and Good luck! DH had to walk away from a LOT of stock options that were underwater. Company stock WITH value is a good thing!

Last edited by zoso1979; 11-21-2011 at 09:16 AM.. Reason: added short vs long term
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