Thomas discussed on Clark Howard


Thomas is with us on the car carriage hi Thomas I think that's pretty much all absolutely Thomas how can I be of service to you sure so I'm about seven thousand dollars in stock from a big box store and wonder if I should liquidated move into one of my discount brokerage fund well the question would be based on first the big box store the you have the stock and how much of your total assets does that seven thousand represent is that a lot of little but only thirty five percent from the like in that about so including anything you have this is a third of the action yeah that that's not an like an IRA or four oh one K. yeah no throw those into if you were to throw those into what percent of what you got would it be I mean maybe fifteen twenty percent that's still too much yeah I having that much in one stock makes me nervous but if you were to sell it so this is not in a retirement account is just a regular investment account you're gonna generate capital gains tax if the stock is done well yeah so you have to absorb that so then there's a question I would ask you if you were looking at buying an individual stock today is that a stock he would want to buy yeah I mean the company overall done well the past couple decades no I don't I don't see that changing see you believe in the company you believe in the stock you're just nervous about having like I am you having that much a percent of your investments in that stock exactly so can I ask how old you are Thomas I'm twenty seven or eight twenty seven if it's a stocky believe in is one that you would buy again today I would say don't buy anymore of it don't sell it and trigger the capital gains tax and instead as you move forward you want to do diversified investing like you are with whatever discount a year where where you're in index funds or whatever so I would say that over time you'll steadily reduced the percent that this individual stock represents rather than trigger tax you're gonna have to pay the capital gains to diversify away from it you're already eighty five percent diversified away from it is that what you said it represents are up so I I think if it's a stocky believe in if you were buying one today you'd still buy that one don't sell it just don't buy more of it but instead only with your retirement accounts and whatever investing you do the share of what you have it'll steadily shrink yeah exactly you comfortable with that yeah definitely yes that's really how I would approach it if you were calling me asking me should you buy it and have it be fifteen percent of your money I would say hopefully not but you're already on there and a nurse here with all your other stuff particularly retirement investing will steadily pull.

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