Unleashed Financial LLC
Jason Preti, CFP is founder and president of Unleashed Financial, LLC. The focus of Unleashed Financial, LLC is to bring fiduciary level financial planning and investment management to the next generation of families.
I am not your father's financial advisor, my job is to increase your financial well-being and understanding of how early planning impacts your long term success. I want to work with the client that needs comprehensive planning and investment direction, but doesn't currently have enough assets for a “traditional” wealth management firm. Unleashed Financial does not require a minimum investment, net worth, or income level. You need a plan for your current goals and long term wealth accumulation - I understand and help you meet your goals.
As a CERTIFIED FINANCIAL PLANNER™ professional, my emphasis is on planning and I fall under the fiduciary standard of care. That means I work in my client's best interest at all times. I don't work on commissions or receive compensation from selling any products, I only work for my client.
BSBA, Business Administration, Central Washington University
Assets Under Management:
Unleashed Financial LLC is a registered investment advisor in the State of Washington.
First, congrats, if both calls of a bull vertical spread are in the money (ITM) then you are in the max gain area. Second, I always (ok, maybe 95% of the time) treat vertical spreads as one position and open or close both strikes in a single transaction. Third, it depends on how much time is left in the option.
Assuming that there is still time remaining (i.e. it’s not the expiration date) you can close both positions at the same time for just the difference in the spread.
If, however, it’s the day after expiration and you don’t have enough capital in your account to buy 100 shares, you might get a nasty gram from your broker for not monitoring (closing) the positions before automatic exercise.
Only in rare situations would I allow an option to expire ITM. Normally I try to close verticals within the last 7-10 trading days.
While it might be possible to open and fund a child's IRA (when they have earned income) I think a better option might be for you to open college savings accounts for them instead. The basic college savings account is usually referred to as a 529 plan. Depending on which state you live in you might be eligible for a state tax deduction.
The 529 plan is a way to invest for college and, when the time comes, the withdrawals for qualified education expenses are tax-free. With children in this age group, a 529 plan will really provide a nice amount of time for the account to build value.
But, like it was already mentioned, make sure to take care of your retirement first. Kids have options for paying for college (loans, grants, scholarships) but you can't get a loan to retire...
If the funds came from a retirement account (SIMPLE IRA in this case) you need to deposit it into another retirement account to avoid taxes and penalties. Best and easiest case, Ed Jones sent you a check for 100% of the SIMPLE account and you deposit it into a traditional IRA account.
If you deposit it into a regular checking account you'll be able to make a subsequent transfer into an IRA within 60 days. !!The 60 days starts on the day the check was issued, not when you deposit the check!! Additionally, you need to know if ed jones withheld any taxes. In order to avoid any taxes or penalties, you need to make a deposit of the check plus anything they withheld.
Watered stock is stock issued at a higher value than the company. Possibly by overvaluing assets, artificially inflating the company value, or just plain fraud.
Stock split just increases the outstanding shares and decreases the value per share. The end result is that the company is still worth the same. It's like making change for a dollar: $1 = 4 quarters or 10 dimes. Nothing fundamental has changed.
The requirement is at least 2 years. "Almost 2 years" will trigger tax on the full gain.
There are some partial exclusions if you are military or moving because of special circumstances (job change/health problems)