Ask Terry Questions Stock I have owned over 20 years should I sell?

Stock I have owned over 20 years should I sell?

By Terry Savage on August 15, 2019 | Investments

I initially purchased 100 shares of DTE for 500.00. It is now worth a lot of money to me.
I went to see someone at Financial Engines. He wasn’t what I expected, and I never went back.
I showed him my statement from DTE, and he said, ” something like that all you should do is leave it to your children or a charity when you pass”
Maybe because I have always reinvested the dividends it may be challenging to figure out the gains.
In any case, I would instead use the money towards my nest egg or for when I need it and not leave it to a charity or my children. I have approximately 500 shares.
What do you suggest? Thank you.

Terry Says

Well, actually the advice you received was very good.  Please read my most recent column –– especially the part that includes the tax consequences of selling stocks that have huge gains.  When you sell you’ll pay capital gains taxes.  If you don’t need the cash, you could leave these shares to your heirs — who will not pay ANY taxes (presuming your estate is under $11.2 million!)  Try to use other money first — unless you absolutely know you will need the cash and want to sell now while stock prices may be near their highs and tax rates near their lows!

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