For a variety of reasons, I elected to exercise a relatively sizable portion of my vested stock options on 2/18 and looking back it seems my timing couldn't have been much better, at least in the near-term. After-tax net proceeds were about $107k, $35k of which is *not* included in NW calculations. This $35k is reserved for home renovations that we've already started and is excluded from NW to avoid a spike and fall, since I don't expect it to increase our house's value on Zillow.
The remaining $72k was originally intended to replace my truck, but after driving several different ones and frankly being a bit obsessive and indecisive, I am really hoping to keep my A/C working and to continue to drive my current one for years to come, provided nothing catastrophic happens. It's a great, reliable pickup (annoying sidenote: I had to replace a window regulator motor last night), it just doesn't have all the bells and whistles that the new ones do. As such, I've taken the funds originally slated for a new truck and started entering a position into USNQX, which has already lost a good deal of value (9.8%)... dollar cost averaging though, right!? Plan is to continue to invest the remainder in sixths over the next five months. I sincerely hope I do not regret doing this a year or two from now.
This additional income from options exercise has forced me to make a few income tax related changes for 2020 as well, namely removing our YTD Roth IRA contributions and instead adjusting post-tax 401k contributions to ensure at least the same amount is covered there. Supposedly my employer allows for ""in-service conversions"", so I am hoping to convert these contributions to Roth and use the Mega Backdoor Roth approach, provided I understand the method / process.
I pray for those affected by COVID-19 and that we as a human race can slow the spread and limit the death toll and impact of this virus. Money doesn't matter in the end (and I might have an unhealthy relationship with it given my close tracking of our NW... something I need to keep in check), frankly none of the stuff in this world does other than our salvation and relationship with Christ. |