Invest in Apple

[skives]

I would like to invest in the stock market anywhere from $5k to $10k with extra money we have. No debt but mortgage. Fully funded EF and 15% to our 401Ks.

Is there any reason why I shouldn’t invest some money in Apple in my taxable account for a 5 to 10 year hold or longer?

[bjl584]

I have a small position in Apple inside my ROTH.
Currently it's worth about $7000.
$5000 of that are gains, so it's done very well for me.

It is however, just a small piece of my overall Roth portfolio.

If you believe that Apple will continue to be a good company with a good stock, and the rest of your finances are in order (which they seem to be), then I don't see any reason to not invest in it

[disneysteve]

I agree with the above. If all of your bases are covered and you want to invest beyond that, go right ahead. I certainly do.

[riverwed070707]

Agree with the others, but why in a taxable account? You say you're putting 15% to your 401k - is that maxed? Do you qualify for a Roth? I have Apple in my Roth IRA with Vanguard. Would definitely recommend exhausting all tax advantaged options before putting in a taxable account.

[Drake3287]

Like you, but many years ago, I decided to invest a little extra cash I had in various stocks I liked, sort of a hobby type investment account on my part. This was besides my normal 457 plan and savings which I religiously contributed to. Over the course of the years I would buy stock's that I had a personal interest in and that I enjoyed. Companies like Apple, Disney, Starbucks and the like. For the most part it's worked well and I've made a ton money off them.

The problem now is that it's all taxable if I want to sell any of it. I know it's a nice problem to have but once these stocks are included in your everyday life earnings, it comes at a steep price to cash out. At least with the 457 plan it came with the tax advantages which they offer. I also made a nice sum off CD's over the years when rates were much higher, at least with these I paid the taxes as I earned it.

Long story short, it'll be a good experience and education to invest a little money in stocks you have a good feel for.

[disneysteve]

The problem now is that it's all taxable if I want to sell any of it.

Truly a first world problem. You can moderate the impact of those capital gains in retirement when income is lower. This is also where generosity comes in handy. You can donate appreciated assets to charity and completely avoid tax on the gain.

Let's say you buy $5,000 of Apple. That would be about 38 shares at $130. Fast forward a couple of years and the stock is now $170. You decide to make a nice $1,000 donation to your alma mater. Rather than writing a check, you instead give them 6 shares of AAPL and bypass the capital gains tax on the $240 profit.

[Drake3287]

Truly a first world problem.

Totally agree. It's funny how when you're young, retirement seems like a life time away so these future taxes issues aren't a concern. 30 year's later and it's the complete opposite!