Ask Terry Questions I need some money. What do u think of cashing out my excellon stock. Mom bought it for me.

I need some money. What do u think of cashing out my excellon stock. Mom bought it for me.

By Terry Savage on December 28, 2023 | Financial Planning / Retirement

I don’t know if I should take money out and cash out my exelon stock that my mom bought for me probably over 30 years ago. I’m going to be going to Florida for 3 months and I don’t have any social security yet I don’t want to use my savings you got me thinking of cashing my stock out but now I’m thinking maybe I should put that and roll it into a Roth ira account that I have set up with vanguard. The value is about $6000. It’s been a dividend reinvestment with ComEd exelon and I haven’t touched it in all these years but I’m just turned 68 I’m not taking social security yet I hope for another year I have part-time income but I’m on leave of absence now so I could go to Florida I have $36,000 in savings and high yield account that I can pull from. And I have over a million dollars with vanguard investments so I don’t have any income right now but maybe one check left from Home Depot part-time so going into traveling to Florida starting January 1st I’ll be pulling savings money out to help me pay for essentials I don’t want to get a motel room so I’m going to be trying to camp and live out of the car stealth to save on spending is it wise to cash in this account now and can I put it into a Roth or should I be throwing a bunch of money on my savings into a Roth as a ketchup before the end of the year thank you

Terry Says

Wait! One line stands out in the middle of your long and complicated story.
Do you REALLY have a MILLION DOLLARS with Vanguard? Is it in an IRA? How is it invested?

I don’t want you to become a spendthrift, going wild with your money. But if you have $1 million, now is the time to use it instead of sleeping in your car! Sounds like you’ve earned a winter vacation.

You’re opening up an income tax issue when you sell stock that you have been accumulating all these years. The capital gains tax rate is low (maybe even no tax depending on your tax bracket), but you’ll have to file a Schedule D and document the cost of your shares. All for $6,000? Doesn’t seem worth the hassle if you have other investments you can liquidate.

It’s a good idea to wait until you turn 70 to take Social Security, but please don’t hesitate to spend some of that other retirement money to enjoy your life a bit. And if I misunderstood your situation, please write back.



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