When I was a young E-3 I decided to make some choice investments that has now resulted in 200k in NVDA with a +5,359% gain. Ive just been sitting on it forever and I don’t really know what to do with it. Selling it would be a huge tax and I’m not confident with any choice. Any advice?
Got real lucky with investment and I don’t know what to do with it.
byu/PussyDoodles inMilitaryFinance
Posted by PussyDoodles
5 Comments
Either ride it or sell it and pay taxes and move to something else… if you’re not confident sell and move to sp500 fund. Either way, look up your tax bracket and see how much you can make in long term capital gains per year without paying too much taxes (10 or 12%) and sell for that much profit so you pay minimal taxes on it. Early in career you don’t make much base pay anyways.
Hold on for dear life until your ready to retire lol
Have you held the shares for longer than a year? If so, you only need to worry about long term capital gains tax.
Your taxable income as an E-3 almost is non-existent. Is it over $47,025? If not, you’re probably in the 0% bracket. https://www.bankrate.com/investing/long-term-capital-gains-tax/
Even if you are above that, it’s a 15% tax. Assuming the whole $200k was capital gains, that means you still get to keep $170k.
Set aside 15% of the sale into a HYSA. Pay the tax bill when you file in April. You won the lottery. Sell the shares, move the money into VTI. Pay the tax. Stop gambling, start investing for the long run.
What is your rank and taxable income now?
If you’re an E3 your long term cap rate should be 0% which is based off income. I’d recognize the cap gains that doesn’t push you out of the 0% cap gains bracket assuming it’s a long term hold. Do the same in 2025. Max out your Roth tsp and do a roth ira max . Don’t piss the money away.
E3 assuming you’re young. Keep that money working for you in a diversified low cost index fund in a tax advantaged account. Time is your best friend when mixed with tax efficacy
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