I might as well be 4 years old when it comes to investing. I literally know nothing. OK, so with that...CLECO will be sold and I will be paid for the shares I have. I always though this DRIP would be my son's education fund. I was told the company will be privately held and no shares issued. So, what now? Is a 529 plan something I should look into? Just go to a broker and hand over the money? Start dumping into my IRAs?

I realize you guys might have questions.

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

36919 posts

Posted on 10/22/14 at 11:15 am to AlxTgr

First off, if you are being paid cash for all of your sales, you will have a capital gain or loss if these are not held in some kind of deferred account (IRA, 529, etc).

I would look into the LA START plan, there are some contribution limits.

529 plans tend to not have great investment options, and the fees can be a bit stiff. But you said you had a DRIP, which means you were paying taxes on the dividends anyways... so if you are comfortable with that, do you just want to go buy and hold something else?

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Posted by AlxTgr

Kyre Banorg

Member since Oct 2003

81559 posts

Posted on 10/22/14 at 11:25 am to LSUFanHouston

quote:
First off, if you are being paid cash for all of your sales, you will have a capital gain or loss if these are not held in some kind of deferred account (IRA, 529, etc).

Right.

quote:
I would look into the LA START plan, there are some contribution limits.

Will do, thanks.

quote:
. But you said you had a DRIP, which means you were paying taxes on the dividends anyways... so if you are comfortable with that, do you just want to go buy and hold something else?

I may. Like another DRIP? How would I find a good one?

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Posted by eng08

Member since Jan 2013

5997 posts

Posted on 10/22/14 at 2:34 pm to AlxTgr

Pick a good company for example: ExxonMobile and then set it up as a drip acct.