The usual investment advice is to buy sound stocks and hold them. However,
this assumes a diversified portfolio... it sounds like this is the only
stock you own.
SO the answer depends on:
1) if the stock tanks, are you wiped out?
2) are you retiring in five, ten, or fifteen or twenty years...
3) do you believe that the company is fundamentally sound, with good
management, products and policies, and that the market for that product is
stable?
if the answer to 3 is yes then you might want to consider holding some of
the stock, as long as you are not planning to retire real soon. (The reason
for the caveat being that if you plan to retire in five years, the business
cycle might not have come back around by then)
In either case thugh I would get my hands on some money, by selling some
stock if necessary, and put it into something else. Municipal bonds are
usually quite safe, I think they are tax free, and they will do well in
times when stocks do not.
Caution, I am not a financial planner, although I had a securities license
in another lifetime and I think what I am telling you here is fairly sound.
Dana
PS - Oh and btw people seem to think the economy is picking up so the stock
price probably is not at the beginning of a nose-dive, unless something is
going on with that particular stock.
Hope that helps and once again I suggest research before actually doing any
of this. You will be the one to deal the the consequences o your decision
so make sure you are comfortable with it.
And congratulations btw, sounds like you work for a good company :)
Deanna Schneider writes:
> How much we talking about here, Ben? What are your goals, etc? My parents
> did some stock options once and used a one-time capital gains
> exception....not sure if that still exists....and then paid off the house, I
> believe. That could be an option.
>
> Oh, to have your dilemna....
>
> -d
>
> ----- Original Message -----
> From: <[EMAIL PROTECTED]>
> To: "CF-Community" <[EMAIL PROTECTED]>
> Sent: Thursday, November 06, 2003 3:58 PM
> Subject: Stock dilemna
>
>
> > so everybody should have such a problem:
> >
> > About a year ago, I took a chance and bought a chunk of my employer's
> stock in my personal account. Bought in at $3.19 a share.
> >
> > Today it closed at $12.40, and has been going up quite a bit lately on
> good news.
> >
> > Price before they bought our site and the market turned south was about
> $13-$14.
> >
> > So, what to do?
> > Keep it all, hoping for even more gains,
> > Sell an amount corresponding to the original investment, getting my money
> out (so anything else is profit),
> > Sell it all (take the money and run).
> >
> > And if I sell, where the heck to put the proceeds?
> >
> > <sigh>
> >
> > -Ben
> >
> >
> >
>
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