Amarin Corp Plc (AMRN)

[ferretmoney]

Surprising calculation:

If you want to see the effect of cashing out slowly vs cashing out quickly, make a spreadsheet with the following columns:
Year......Capital........Draw.......Earn.........Add........Tax......EOY
0........$ start.........Annual.....annual.......from sell..on sell..Bal
1........=prev eoy
2
etc


You make several copies of this spreadsheet, and try different schedules of selling larger amounts quickly or selling smaller amounts over a longer period. Also try different rates of return on the passive vehicle chosen for your bulk funds.

If you plan to put your money into fairly conservative places, like dividend-paying stocks or an income fund or such, you might find, as I did, that it won't make a lot of difference. Yes, you will pay more tax from selling quickly, but the proceeds begin earning immediately, offsetting that extra cost. Selling quickly removes the risk of holding stock but it forfeits any further appreciation once it is sold. Then again, stocks go up and stocks go down.

I'm not recommending that anyone sell now, but it doesn't hurt to consider different recipes for cooking your pot of gold when you decide to start pulling out.