i'm not trying to minimize the impact of taxes, but i also don't look at things as black and white. I understand he doesn't want to sell all, but could he trim his position back over time?To your point, he would not go out and buy Exxon Mobil today. However, since so much of the position is capital gain, I think it seems very painful to him at this point to sell it and take the capital gains hit.
While the XOM does represent a significant chunk of his assets, he doesn't expect to need to tap into it during his lifetime. So, I think his exit strategy is really to hope that XOM does fairly well, or at least does not collapse, over the rest of his life (he is in his mid 70s). Then, it would get stepped up in basis for his heirs.
While there is definitely risk to holding a single stock, I do think it would take a lot of convincing for him to want to sell the XOM at this point because of the capital gains.
But think about what you wrote that he doesn't want to sell to generate cap gains taxes.
when he was working, would he have forgone a raise because he would have paid more taxes?
we seem to want more income (and don't fret the extra tax) when we're working but loathe it when we're retired (because of the additional tax we'll owe).
Sounds like he has an exit strategy (upon death) now, but I was asking if he had an exit strategy when he bought the stock?
Statistics: Posted by arcticpineapplecorp. — Sat Apr 06, 2024 1:47 pm — Replies 15 — Views 1198