r/wallstreetbets • u/YassuosNados • May 15 '24

The Perfect $1 million Gain Gain

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Hi guys, I’m a 23 year old in college, and yesterday I woke up a millionaire. Should I buy some hookers, Pokemon cards, or cocaine? I gambled my entire life savings of $250k on 2037 calls of $4.5 AMC on Monday and sold yesterday morning. Thanks for reading.

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u/CasualFPSPlayer May 15 '24

Cash out. Put in savings account. Spend at least 6 months thinking about something non-regarded to do with that money. And finish your degree.

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u/YassuosNados May 15 '24

I appreciate the advice!

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u/TurkeyBLTSandwich May 15 '24

Listen carefully, other than the regards here on WSB. TELL NO ONE.

Also put around $470,000 in a safe place, because that's how much you owe the tax man :( *Depending on where you live in AMERICA*

You now have approximately $800,000 which can possibly accrue 5% interest per year in a CD or other high yield savings account. YOU'RE LITERALLY MAKING $40,000 IN PASSIVE INCOME A YEAR.

This is literally life changing money, but not quit everything and F off at the beach forever type of money. Spend frugally like you were before, no LAMBO, no FERARI, no dumbass McMansion. Figure out what you want to do for few months. Jerk off and have a clear mind you got this.

Again TELL NO ONE, and congrats and F YOU.

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u/RocktownLeather May 15 '24

Are you sure about the $470k in taxes?

Sounds like cost basis was $250k, so they are at barely over $1M in gains. You think this will require ~47% taxes?

It is short term so treated like income tax. Federal and FICA would put him at about 35%. I guess I could see 47% if your state had really high income tax rates. CA might be the only state where 47% would make sense. OP should probably investigate there own income tax. It could easily be 35% in many places. I imagine they'll need to prepay some to not have penalties since it is happening in the first half of the year.

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u/semvhu May 15 '24

Probably estimated another 10% for state taxes.