Ask Terry Questions Shares of oil stock

Shares of oil stock

By Terry Savage on March 09, 2020 | Investments

I’m 73, my wife is 70. We own our house just have a home equity loan around 25k. In mid 90’s my mother gave me her Mobil oil stock around 70 shares. Thru reinvestment and stock splits I now have 900 shares. We have no other investments. Should I stay the coarse , or dump some or all of it.
Thank you for your time.

Terry Says

This is a tough one. The oil industry is down a lot farther than many other market segments because the economy is forecast to slow down because of the virus. Airlines are already cutting flights, travel is being limited.
You’ve gotten along so far without needing this money. So assuming that you have other income and the self-discipline to ride out this economic crisis, I’d hang on to the stock.
Remember, if you die owning the stock, then your heirs (named in your will or revocable living trust) will inherit it at a cost “basis” as the price on the date of your death. If they then sell the stock immediately, they won’t pay taxes on the proceeds!

PS I hope you can try to refinance that home equity loan because rates are bound to be much lower than they were when you took out the loan!



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