Monetizing Stock Gains with "Tax-Engineered Products"
You can protect your stock gains and get cash from your stock by using strategies employed by top investment bankers. The techniques can generate six- and seven-figure gains while deferring or eliminating the taxes you'd have to pay if you just sold the stock outright. Deciding whether to lock-in substantial gains is always a problem for investors.Tax-engineered products convert your stocks into cash without selling them and save you up to $150 on each $1,000 that you avoid in capital gains.
• You can use stock derivatives to borrow up to 90% of your stock's value after the stock experiences substantial gains.
• Collars are similar to insurance for your stock -- you can buy put and call options to hedge your position so that you can borrow more money. The put option lets you sell the stock if it falls below a predetermined price. At the same time, you buy an out-of-the-money call option that requires you to sell your stock if it rises in value above a certain targeted price. …show more content…
• When your stock is safely collared on both sides with call and put options, you can borrow up to 90% of its value.
• Selling the call generates just enough income to buy the put option.
• You retain all your voting rights but might not receive dividends, depending on the stock's value when the collar expires.
• Collaring a stock's price too tightly could result in the IRS considering the transaction a sale, and the Joint Committee on Taxation explains that a 15% spread between put and call price is
You can protect your stock gains and get cash from your stock by using strategies employed by top investment bankers. The techniques can generate six- and seven-figure gains while deferring or eliminating the taxes you'd have to pay if you just sold the stock outright. Deciding whether to lock-in substantial gains is always a problem for investors.Tax-engineered products convert your stocks into cash without selling them and save you up to $150 on each $1,000 that you avoid in capital gains.
• You can use stock derivatives to borrow up to 90% of your stock's value after the stock experiences substantial gains.
• Collars are similar to insurance for your stock -- you can buy put and call options to hedge your position so that you can borrow more money. The put option lets you sell the stock if it falls below a predetermined price. At the same time, you buy an out-of-the-money call option that requires you to sell your stock if it rises in value above a certain targeted price. …show more content…
• When your stock is safely collared on both sides with call and put options, you can borrow up to 90% of its value.
• Selling the call generates just enough income to buy the put option.
• You retain all your voting rights but might not receive dividends, depending on the stock's value when the collar expires.
• Collaring a stock's price too tightly could result in the IRS considering the transaction a sale, and the Joint Committee on Taxation explains that a 15% spread between put and call price is