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2026 advise on savings buckets
(lemmy.nz)
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My thought process is that it’s a big chunk of money and it’s in 1 company. Kinda having a big amount of eggs in 1 basket, so while i am for sure up 10% (gets a %10 discount on it) i sell.
Let me know if this make sense.
But then you're paying full income tax on that 10% which drops it some pretty decent amount. If you can afford to hold on to the purchased shares until you get preferential tax treatment then you'd pay long term capital gains on them and that's much less than regular income tax rates. On top of that, you've got the movement of the underlying stock during the year that'll be taxed at cap gains rates rather than income. If you think the stock is going to trend down, maybe time to find a new job.
Devil’s advocate if there is a broader market sell off, and op is in a more volatile sector. They may prefer just taking the 10% as normal income and diversifying.
No right answer, depends on your risk tolerance.