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re: Need some investing advice

Posted on 12/28/14 at 10:50 am to
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80762 posts
Posted on 12/28/14 at 10:50 am to
If you would have re-invested dividends for the past 30 years, that $38,000 would probably be closer to $100,000

Since that is in the past, I'd suggest taking that $10k and invest elsewhere. No point in throwing all your eggs in one basket. The best plan would be to find $1000 somewhere else and continue to re-invest XOM dividends until you are ready to retire. That would be a nice check to receive if you re-invest for the next 20-25 years. Not a retirement plan, but a good supplement.
Posted by studentsect
Member since Jan 2004
2258 posts
Posted on 12/28/14 at 1:02 pm to
There is no reason for you to feel tied to Exxon with your new $10k just because you already have shares; however, your existing shares are a different situation due to the capital gains tax you will owe. There just aren't any stocks out there that are sure things to outperform Exxon + offset the cap gains.

You should completely ignore the current Exxon holdings when deciding what to do with the $10k, except to the extent that you want to diversify.
You are basically asking two questions:
Should I sell my Exxon holdings (that have a very low tax basis) and reinvest in a different stock?
No.
What should I do with $10K I have to invest?
That depends on what your goals are.
Posted by Thib-a-doe Tiger
Member since Nov 2012
35346 posts
Posted on 12/29/14 at 9:10 am to
Xom has a decent dividend. The reason it's not growing like you would like is because you aren't reinvesting. The same will happen with Altria
Posted by lsujro
north of the wall
Member since Jul 2007
3919 posts
Posted on 12/29/14 at 10:15 am to
if I got $10k as a gift, I would max out one roth and fund another for my wife (if applicable). I'd buy a few index funds and let it sit. Then you would have something almost resembling a retirement plan. Having a bunch of exxon stock is an investment, but not a retirement plan imo. and i would stop using those dividends to pay property tax. bite the bullet and pay them in cash, then reinvest dividends into the roth accounts.
Posted by mandevilletiger34
Member since Dec 2010
863 posts
Posted on 12/29/14 at 10:31 am to
quote:

I would max out one roth and fund another for my wife (if applicable). I'd buy a few index funds and let it sit. Then you would have something almost resembling a retirement plan.


Would this be something to go through an advisor for or I see a lot of talk re: vanguard on here. I may try and go buy some books this week and start learning!
Posted by lsujro
north of the wall
Member since Jul 2007
3919 posts
Posted on 12/29/14 at 10:40 am to
quote:

Would this be something to go through an advisor for or I see a lot of talk re: vanguard on here. I may try and go buy some books this week and start learning!


you could certainly do this through an advisor if you are not comfortable doing it yourself. however, it is pretty simple to do yourself.

vanguard is a great company with solid, low fee etf's. you can set up an account with them and pick some of the funds mentioned in here (check the stickied thread - i think it references the favorite funds of many on here). you can also use any other online broker (schwab, td ameritrade, etc.) which have vanguard and many other etf's. Each of these has a bunch of funds they will let you buy without paying a trade commission. I'd pick the one with the most funds you like that trade for free (i went with td ameritrade, which has about 100 commission free etf's). I don't know about the rest of the brokers, but td ameritrade lets you manage multiple accounts under one, so you could also set up a roth for your wife and manage it with your own login info. (roth ira is an individual account - you have to keep the money separate).
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 12/29/14 at 10:43 am to
If you know you want to do something simple, like open Roth IRAs for you and your wife and allocate everything to an index fund, you can do this yourself through Vanguard. Can be done online and simply. no need to pay more by using an advisor.

Separately, you need to think about longer term financial planning. What other assets do you have, how are they working for you, and how much should you be saving for retirement? A planner can help you figure out all the moving bits. But don't hire one because you went to high school with him, or because he plays golf with your brother in law. Find one who works for a fee and isn't making a commission off of what he sells to you.
Posted by studentsect
Member since Jan 2004
2258 posts
Posted on 12/29/14 at 10:47 am to
quote:

Would this be something to go through an advisor for or I see a lot of talk re: vanguard on here. I may try and go buy some books this week and start learning!



You can do a Roth through an adviser or set one up with pretty much any online brokerage. I set mine up with etrade and it was very easy, and there are numerous commission free funds you can invest in (I know the same is true with Schwab and I assume thats the case with the others as well). Vanguard also seems pretty easy:

LINK

You have until Tax Day in April to contribute for 2014.
Posted by mandevilletiger34
Member since Dec 2010
863 posts
Posted on 12/29/14 at 2:23 pm to
what about taking the money and applying it to a rental property around lsu?

I have 4 sons that will be going there starting in 8 years with 10-12 years of school all between them.

Something inexpensive like below as an example?

LINK
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 12/29/14 at 2:25 pm to
Just FYI, there are several properties in that unit that are for rent/sale. Idk if that means that they don't rent well or what, but if you're going to pay $5-800/month for your kids anyway, might as well have something to show for it when you're done.
Posted by studentsect
Member since Jan 2004
2258 posts
Posted on 12/29/14 at 2:40 pm to
quote:

what about taking the money and applying it to a rental property around lsu?

I have 4 sons that will be going there starting in 8 years with 10-12 years of school all between them.

Something inexpensive like below as an example?

LINK


I don't have any investment properties so take this with a grain of salt, but the "good" places to live around LSU seem to change pretty frequently so I would be hesitant to buy something a decade out unless I were very comfortable about it remaining a safe and desirable place to live. I would also be concerned about the effect of low oil prices on south Louisiana property values.
Posted by mandevilletiger34
Member since Dec 2010
863 posts
Posted on 12/30/14 at 1:06 pm to
Seems like a college area would be a good place to have a rental.
As a former residential contractor I would be able to handle most of the pain in the arse distress calls and make most of the repairs myself.

I would think if I could double my note in rent, then I would be able to make some money with it???
Posted by CidCock
Member since Sep 2007
Member since Feb 2011
8630 posts
Posted on 12/30/14 at 2:33 pm to
Kids already know where they are going to school?
Posted by mandevilletiger34
Member since Dec 2010
863 posts
Posted on 12/30/14 at 3:38 pm to
quote:

Kids already know where they are going to school?


If they know what is best for them!
Posted by mallardhank
Atlanta
Member since Feb 2006
1275 posts
Posted on 12/31/14 at 3:49 am to
Friend of mine did that at Georgia. Then new apartment complexes opened with pools, he took a severe beating. Couldn't rent or sell.
Posted by lsujro
north of the wall
Member since Jul 2007
3919 posts
Posted on 12/31/14 at 11:07 am to
quote:

Friend of mine did that at Georgia. Then new apartment complexes opened with pools, he took a severe beating. Couldn't rent or sell.


we used to just go to the pool without renting in the complex never had an issue - the complexes liked being known as the cool place to hang out.
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