Too much stock in one area
We are currently with Edward Jones and have been advised to sell some of our stocks in CAT because they represent about 40% of our investments. If we sell 20% we will be subject to approx $12-15k in taxes. To take such a loss on a stock that has been performing great, seems like a mistake. Do you think it’s too risky to leave all the stocks alone?
I value your experience and advise. Thanks.
Terry Says
Aha, there are two schools of thought on this issue. Of course, concentration is risky. But with the AI boom, CAT has benefited and had quite a run. And could continue to do so. And what other stock would you want to buy with the money?
But there’s more at issue here. I don’t know how old you are. But if you die owning the stock, there will be NO capital gains taxes!! So if you’re in your 80s and don’t need the money that would influence your decision.
Also, there will be commissions on the sale — and on the purchase of something else. That makes a broker’s tongue hang out!
So I suggest you get your advice from someone who can review your entire financial situation, is a FIDUCIARY (putting your interests first) and is fee-only — taking NO commissions.
Click on thislink and watch the video to find that person!
