
I’m on the crosstown bus the other day. The M79. Vampire Weekend wrote an entire song about it.
So I’m seated near the front of this double-long bus and the only two people remaining on board, besides myself and the driver, are two elderly ladies. I’d place them in their seventies. They’re seated in front of me. Closer to the driver.
First lady: “Let me ask you a question. How much do they tax you when you sell your stock.”
Second lady: “You mean like capital gains.”
First lady: “Like capital gains.”
Second lady: “I’m not sure but I think it’s more if you sell it quickly. Like in a year.”
First lady: “Because I have some Apple stock. And I don’t know if I want to sell it. I bought it at $100, then it went to $700, then it split by seven, now it’s $300. I don’t know what to do.”
At this point my nostrils flared. This lady bought Apple at least 10 years ago. It’s gone up 22 times since she bought it. If she’s not rich, she’s at least way better off than she was. And yet she sounds so, well, agonized. Like she’s trying to figure out a way to reap the profits of her stock without having to pay any taxes on it.
Of course she’s held it long enough that she won’t pay the 37% rate you pay when you unload a stock in less than a year. But, I mean, she’s held it more than a decade. She’s going to pay the least amount of taxes possible. I said nothing.
First lady: “I think I’ll just hold on to it.”
She’d rather hold the stock and reap no financial reward than have to share any of it with Uncle Sam. At least her grandkids will be happy.