Apple Stock Story

If I purchased $100,000 worth of Apple Stock in 2009 for $6.50 per share, how many shares of Apple Stock would I own today and what tune would I be playing on my iPhone?

If you had purchased $100,000 worth of Apple (AAPL) stock in 2009 for $6.50 per share, you would have been able to buy approximately 15,384 shares at that time.

As of April 11, 2023, AAPL is trading at around $172.30 per share. With 15,384 shares of AAPL at a current price of $172.30 per share, your investment would be worth approximately $2,651,075.20 today.

Oh but wait, What About THE SPLITS

What about the stock splits that happened with Apple stock since 2009? If you take the stock splits into account, If I purchased $100,000 worth of Apple Stock in 2009 for $6.50 per share, how many shares of Apple Stock would I own today when you take into account all of the stock splits.

Apple (AAPL) has had four stock splits since 2009, with a split factor of 2-for-1 in 2013, 2014, and 2020, and a split factor of 4-for-1 in 2020.

Taking into account these stock splits, your original investment of $100,000 for $6.50 per share in 2009 would have resulted in the purchase of 15,384 shares.

After the 2-for-1 stock split in 2013, your 15,384 shares would have doubled to 30,768 shares.

After the 7-for-1 stock split in 2014, your 30,768 shares would have multiplied by 7, resulting in a total of 215,376 shares.

After the 4-for-1 stock split in 2020, your 215,376 shares would have multiplied by 4, resulting in a total of 861,504 shares.

As of April 11, 2023, AAPL is trading at around $172.30 per share. With 861,504 shares of AAPL at a current price of $172.30 per share, your investment would be worth approximately $148,387,891.20 today.

Please note that this calculation does not take into account any dividends that AAPL may have paid during this period.

Taxable account vs. Roth IRA

Now make the same calculations based on two different scenarios: 1. This investment of $100,000 was made in a taxable account. 2. This investment of $100,000 was made in a Roth IRA account.

How much Realized Capital Gain?

1. Investment in a taxable account: If you had invested $100,000 in AAPL in 2009 and held it in a taxable account, you would have had to pay capital gains tax on any profits when you sold the shares. Assuming you sold all your shares on April 11, 2023, you would have realized a capital gain of approximately $148,287,891.20 (based on the previous calculation), and you would owe taxes on that gain.

The amount of tax you owe would depend on your tax bracket and how long you held the shares. If you held the shares for more than a year before selling them, you would be eligible for long-term capital gains tax rates, which are generally lower than short-term capital gains tax rates. You may also be eligible for deductions or credits that could reduce your tax liability.

2. Investment in a Roth IRA account: If you had invested $100,000 in AAPL in 2009 and held it in a Roth IRA account, you would not owe any taxes on the capital gains when you sold the shares, as long as you follow the rules for Roth IRA withdrawals. This is because Roth IRA contributions are made with after-tax dollars, and the earnings grow tax-free.

Assuming you sold all your shares on April 11, 2023 you could buy a new iPad Pro today because the entire amount of your investment, including any capital gains, would be available for withdrawal tax-free, as long as you are over the age of 59 1/2 and have had the account for at least five years.

Please note that the above calculations are for illustrative purposes only and do not take into account individual circumstances or any changes in tax laws or regulations. You should consult with a financial advisor or tax professional for personalized advice on your specific situation.

How Much TAX would I own the IRS?

That big blue plastic bucket I call the Taxable account has a bit of a Tax Issue…. You would still be able to buy a nice Apple Watch though, but yeah – your tax bill is something to think about.

• For individuals in the 15% tax bracket, the estimated federal capital gains tax liability would be approximately $22,293,578.68.

• For individuals in the 20% tax bracket, the estimated federal capital gains tax liability would be approximately $29,657,704.90.

Again, these are rough estimates, and your actual tax liability would depend on a number of factors, including your income, tax deductions, and any other taxable income you may have during the year. Additionally, state and local taxes may also apply. It is recommended to consult with a financial advisor or tax professional for personalized advice on your specific situation.

Here are some links where you can find the historical stock price data for Apple (AAPL) in 2009:

1. Yahoo Finance: https://finance.yahoo.com/quote/AAPL/history?p=AAPL](https://finance.yahoo.com/quote/AAPL/history?p=AAPL)

2. Google Finance: https://www.google.com/finance/quote/AAPL:NASDAQ](https://www.google.com/finance/quote/AAPL:NASDAQ)

3. Nasdaq: https://www.nasdaq.com/market-activity/stocks/aapl/historical](https://www.nasdaq.com/market-activity/stocks/aapl/historical)

4. Investing.com: https://www.investing.com/equities/apple-computer-inc-historical-data](https://www.investing.com/equities/apple-computer-inc-historical-data)

All of these websites offer historical stock price data for AAPL going back to 2009, and you can use them to find the value of Apple stock on any given day during that time period.