Okay all you financial gurus and stock traders, I’m looking for some input. Several years ago, my wife decided she wanted to try her hand at buying some inexpensive stock. She took $3,000 and setup a Scottrade account, did a little research and bought some stock. She played around with this account for a year or so and then I think the novelty started to wear off. Since the statements came to her and I really had nothing to do with it, I pretty much forgot about it. Well, a couple of days ago, while trying to “streamline” our lives, I came across some Scottrade papers and asked my wife about the account. She sheepishly replied, “I haven’t really looked at it in a while”. I wasn’t really mad as it was her money but I chided her a bit until, we looked up the account. It seems she was saavy enough to buy 200 shares of a stock called Skyworks Solutions at $4.95 per share. It is now trading at $98.62 per share.
I realize this is not a ton of money but, it is significantly more than she invested and since I never really thought she would do anything but piss away $3,000, I’m not really sure what to do with this. Just looking for some constructive input. Thanks
No Peapod, I will not buy you a pony.
“Apathy is the Glove into Which Evil Slips It’s Hand”.
Yet another fisherman who married up
Peapod
Bonzo
23Sail
…me
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I think D’s in pretty good company there…
D, seriously man, that is incredible…and I don’t know what your idea of a “ton of money” is, but you did use your abacus to confirm that is over $18,000 right??? try taking out all bu the initial investment and let her continue to play with it!
Larry I will gladly buy you and the lovely Ms. Cracker a sushi dinner anytime you come to Columbia. And, as much I would love a new boat, I don’t think she’ll go for that.
Rob, while I am proud of her investment achievement, I don’t know that she is qualified to advise anyone else but, send your wife. Sorry, no kids, I have my own.
Dave, yes, I definitely married up, like so many of us here.
Carl, no silver spoon kid here so it is a lot of money to ME. Just figured some would not think so as there are some big money investors here I know.
Easy, we’ll gladly buy you some wine the next time you come south. Not sure about the puppy. They pee a lot.
Thanks for the input, may sell some and hang on to some. Did a little reading and it seems this company may not be through going up.
The truth is, a good bit of our money goes to the Charleston economy…College of Charleston that is.
“Apathy is the Glove into Which Evil Slips It’s Hand”.
Don’t forget when you sell the stock you create a taxable event. Most brokerages do not take taxes out for you, so it’s best that you get a clear understanding of what the tax liability is going to be and hang onto that money so that you can pay it when the tax bill comes in!
I know that Wando Grill doesn’t like me giving out “investment advice”, but I would still get an understanding of your tax situation if I were you!
If you’ve held it for over a year, your gain will be taxed with the long-term rate—probably 15% but could be 20% and also subject to 3.8% medicare surtax if your income is above a certain threshold. If you’ve held it for less than a year, you’ll be taxed at your marginal income tax rate.
Before you decide what to do, you need to evaluate that stock. You can’t predict the future, but you can at least get a general idea of what shape the company is in and where the stock might be headed. Based on that, you might want to sell it all. Regardless, you can’t go wrong by selling some and locking in a gain. Taking a profit is never bad. What to do with the proceeds of a stock sale is up to you, but paying down debt (starting with shortest term, highest interest rate) is never a bad idea.
