Too Much Apple [AAPL] Stock

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spreadsheetguy
Posts: 16
Joined: Wed May 02, 2018 12:19 pm

Re: Too Much Apple [AAPL] Stock

Post by spreadsheetguy » Tue Oct 23, 2018 1:00 am

bluquark wrote:
Mon Oct 22, 2018 6:32 pm
If you plan to donate some of your savings to charity over your lifetime, the most tax-efficient way to do so is by donating appreciated stock. Assuming you bought the stock more than a year ago, you can donate that AAPL to a DAF and take the entire amount as a deduction against this year's income while avoiding capital gains tax. Then you can reallocate the amount to an index fund inside the DAF until you decide which charities to donate it to.
This is really interesting. I'm going to do more research on DAF to see if it makes sense for our situation, as I'm currently sitting on a very large amount of unrealized taxable, capital gains (admittedly a nice problem to have).

bluquark
Posts: 15
Joined: Mon Oct 22, 2018 2:30 pm

Re: Too Much Apple [AAPL] Stock

Post by bluquark » Tue Oct 23, 2018 2:01 am

Great! I think DAFs are a fantastic tool and I’ve been really happy with mine since I opened it last year. I think anyone who donates more than trivial amounts should have one for the convenience factor alone, and if you have enough capital gains, it becomes one of the key tax-efficiency tricks (can be on the same scale as megabackdoor or even much better, depending on the amount).

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CyclingDuo
Posts: 1781
Joined: Fri Jan 06, 2017 9:07 am

Re: Too Much APPL Stock

Post by CyclingDuo » Tue Oct 23, 2018 6:27 am

madbrain wrote:
Mon Oct 22, 2018 11:39 pm
CyclingDuo wrote:
Mon Oct 22, 2018 12:56 am
Don't forget the 3/4's of a billion in a new bond offering Apple did at the time,
I don't recall this one. When was this ?
Amelio takes over as CEO and immediately goes to work to make cuts, shore up the balance sheet and initiate the turnaround in 1996.
$661M Bond Offering in 1996 through Goldman Sachs.
Q3 1996 ends with a profit.
Apple announces cash/stock deal on 12/20/96 to purchase NeXT.
Amelio ousted in 1997, Jobs acts as the interim CEO.
Steve Jobs immediately cuts 3000 more jobs at Apple, and 70% of the products Apple offered - changes focus to 4 grids only: iMac, iBook, PowerMac, Powerbook.
Jobs cleans house with the Board of Directors and assembles a new team in 1997.
Jobs kills all of the clone vendors in 1997 with the release of Mac OS 8 - the clones previously had been able to license the Mac OS, but no longer.
August 1997 Microsoft buys $150M of Apple non-voting stock and agrees to a 5 year deal of developing Microsoft Office and Explorer for Mac - and in return Apple agrees to make Explorer the default browser on Macs for 5 years.
iMac G3 was introduced in August 1998.
madbrain wrote:
Mon Oct 22, 2018 11:39 pm
and the purchase of NeXT for $400M which brought Steve Jobs back to the helm which helped get things on track.
That happened the year before - 1996 . It actually drained Apple's finances significantly and didn't immedaitely result in any Apple product containing Next technology until 5 years later - the first release of OS X. It was a big gamble that paid off.

But I think without the 1997 investment from Microsoft, Apple still would have been toast even with Jobs.
The NeXT deal brought back Jobs as CEO, and it included key executives from NeXT taking top positions at Apple as part of the deal which was instrumental in having an executive team at Apple that would not question what Jobs was doing. macOS, iOS, watchOS, tvOS all stem from the merging of NeXT software.

Jobs, who had been away from the PC war with Microsoft since 1985, realized that game/war had long since already been won by Microsoft. Partnering with Bill Gates on Office/Explorer was indeed a key move - at least on the PC side of Apple's business. The move outside of the PC business was the more important business decision for Apple (iPods, iTunes, iPads, iPhones).

No doubt the company was on the brink as most of the entire PC industry was in a bit of a slump in the 1996/97 years, and Apple itself had way too many products that were not profitable, too large of a team, and needed to be trimmed down, focused, and guided. Both Amelio and Jobs realized that and quickly righted the ship.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

Duffydog1
Posts: 62
Joined: Sat Dec 03, 2016 1:42 pm

Re: Too Much Apple [AAPL] Stock

Post by Duffydog1 » Sat Oct 27, 2018 6:54 am

spreadsheetguy wrote:
Tue Oct 23, 2018 1:00 am
bluquark wrote:
Mon Oct 22, 2018 6:32 pm
If you plan to donate some of your savings to charity over your lifetime, the most tax-efficient way to do so is by donating appreciated stock. Assuming you bought the stock more than a year ago, you can donate that AAPL to a DAF and take the entire amount as a deduction against this year's income while avoiding capital gains tax. Then you can reallocate the amount to an index fund inside the DAF until you decide which charities to donate it to.
This is really interesting. I'm going to do more research on DAF to see if it makes sense for our situation, as I'm currently sitting on a very large amount of unrealized taxable, capital gains (admittedly a nice problem to have).
Sorry for my ignorance but can you explain a DAF?

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Starchild
Posts: 84
Joined: Fri Feb 09, 2018 9:01 am

Re: Too Much Apple [AAPL] Stock

Post by Starchild » Sat Oct 27, 2018 8:37 am

I had a similar problem with Apple stock. I still have it, but have added to other parts of the portfolio to reduce it's weight.

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CyclingDuo
Posts: 1781
Joined: Fri Jan 06, 2017 9:07 am

Re: Too Much Apple [AAPL] Stock

Post by CyclingDuo » Sat Oct 27, 2018 9:24 am

Duffydog1 wrote:
Sat Oct 27, 2018 6:54 am
spreadsheetguy wrote:
Tue Oct 23, 2018 1:00 am
bluquark wrote:
Mon Oct 22, 2018 6:32 pm
If you plan to donate some of your savings to charity over your lifetime, the most tax-efficient way to do so is by donating appreciated stock. Assuming you bought the stock more than a year ago, you can donate that AAPL to a DAF and take the entire amount as a deduction against this year's income while avoiding capital gains tax. Then you can reallocate the amount to an index fund inside the DAF until you decide which charities to donate it to.
This is really interesting. I'm going to do more research on DAF to see if it makes sense for our situation, as I'm currently sitting on a very large amount of unrealized taxable, capital gains (admittedly a nice problem to have).
Sorry for my ignorance but can you explain a DAF?
https://www.fidelitycharitable.org/phil ... fund.shtml

https://www.nptrust.org/what-is-a-donor-advised-fund

https://www.schwabcharitable.org/public ... ised_funds

https://www.irs.gov/charities-non-profi ... ised-funds
"Everywhere is within walking distance if you have the time." ~ Steven Wright

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