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Started By
Message
Inheriting Exxonmobil stock
Posted on 8/2/16 at 8:54 am
Posted on 8/2/16 at 8:54 am
In the next 30-45 days I will be inheriting about 680 shares of XOM. My cost basis is around $82 a share. Also going to be getting about 50K in cash. I am going to use the cash to pay off some debt and add to my emergency fund. My question is should I hold onto the XOM stock or sell and put into my Vanguard non taxable VTSMX account?.
I have maxed out my and my wifes Roth for the year. I am maxing out my Simple IRA at work. The wife has a 401k that isn't matched at work and she is doing about 6% contribution there. I have 529 for the kids and in pretty good shape there.
I have maxed out my and my wifes Roth for the year. I am maxing out my Simple IRA at work. The wife has a 401k that isn't matched at work and she is doing about 6% contribution there. I have 529 for the kids and in pretty good shape there.
This post was edited on 8/2/16 at 8:56 am
12
Posted on 8/2/16 at 9:15 am to lsufan1971
Any investment should have a thesis. What is your thesis for investing in XOM? What is your time horizon? What is your target exit point?
If you don't have these, just take the money and run
If you don't have these, just take the money and run
Posted on 8/2/16 at 9:21 am to lsufan1971
Everything else seems to be in order. Unless you need the cash or are money for a large purchase, why not just hold onto it for when you do need it 
Posted on 8/2/16 at 9:26 am to lsufan1971
Hold on to it, collect the dividend check and never touch the stock. Let your family inherit the 680 shares one day.
Take the dividend proceeds and plow them into your vanguard fund of choice.
Take the dividend proceeds and plow them into your vanguard fund of choice.
Posted on 8/2/16 at 9:28 am to lsufan1971
680 shares. Their annual dividend rate is $3.00. Holding onto those shares net you over $2k a year. I'd hold for now. XOM isn't going anywhere.
Posted on 8/2/16 at 9:50 am to tigerbaittrick
I consider XOM a legacy stock that really should never be sold unless something drastically changes.
Posted on 8/2/16 at 9:54 am to Janky
I definitely wouldn't sell any O&G stock right now.
eta: Unless you think they will file ch. 11. Which obviously isn't XOM
eta: Unless you think they will file ch. 11. Which obviously isn't XOM
This post was edited on 8/2/16 at 9:55 am
Posted on 8/2/16 at 10:01 am to barry
thanks for the advice. One other question. These shares are so old (Early 80's) they are paper certificates. Anyway to transfer them into my Vanguard taxable account? I know I have to get them in my name first. This post was edited on 8/2/16 at 10:02 am
Posted on 8/2/16 at 7:16 pm to lsufan1971
quote:
thanks for the advice. One other question. These shares are so old (Early 80's) they are paper certificates. Anyway to transfer them into my Vanguard taxable account? I know I have to get them in my name first.
call vanguard. i did it with schwab, it was a pain in the arse but doable.
eta: I like the idea of holding XOM, at least now, oil stocks are in the shitter. But what other holdings do you have? And for how much?
btw: my wife's family became very rich off XOM. It financed her grandmother's retirement, and will finance her parents and her uncle. hopefully mine too!
This post was edited on 8/2/16 at 7:18 pm
Posted on 8/2/16 at 8:09 pm to lsufan1971
XOM is my largest holding. My projected holding period for it is "forever."
Exxon has paid a dividend every year for more than 100 years and has increased its dividend every year for the last 34 consecutive years.
Exxon has paid a dividend every year for more than 100 years and has increased its dividend every year for the last 34 consecutive years.
Posted on 8/2/16 at 8:49 pm to LSURussian
I inherited 600 shares in 1992. My aunts husband was an attorney for ESSO back in the day and had stock options. Had a couple of million when she died (he died before her in 1976). Anyway, that stock split twice since I've had it. I did sell some when I got to 2400 shares only because we wanted to diversify but I swore I'd never go below the 600 that were "original".
I take the dividends -- I know I should reinvest BUT it's my "mad money" for things that I "want" but wouldn't consider spending our paychecks on as I don't "need" them.
I take the dividends -- I know I should reinvest BUT it's my "mad money" for things that I "want" but wouldn't consider spending our paychecks on as I don't "need" them.
Posted on 8/3/16 at 12:06 am to lsufan1971
What would be the reason for selling now given where the industry is? If you aren't even using all the separate $50k in cash to pay off debt, then it doesn't sound like you really "need" the money you'd get from selling those shares. Do you have a big purchase you're eyeing?
Posted on 8/3/16 at 8:54 am to AlexLSU
I'm currently trying to decide on putting money into XOM or CVX. Anyone care to tell me what is the better plan?
CVX seems better with the annual dividend above $4, but as someone said XOM has increased for 34 years straight.
CVX seems better with the annual dividend above $4, but as someone said XOM has increased for 34 years straight.
Posted on 8/3/16 at 10:36 am to lsufan1971
I inherited 20K worth of Texaco stock when my parents died (now Chevron). I started a DRIP. No broker needed. No dividends. It just keeps buying more stock with the dividends. I haven't touched it. No added purchases or sales. Today, my Chevron stock is worth $90K.
My advice... keep the stock. As someone said "Exxon ain't going nowhere."
My advice... keep the stock. As someone said "Exxon ain't going nowhere."
Posted on 8/3/16 at 11:02 am to tigerbaittrick
Both overvalued IMO, but if XOM gets below $80 I will add to my position. I think XOM dividend is more sustainable than CVX, but you likely can't go wrong either way as long as you buy it "right".
Posted on 8/3/16 at 11:03 am to Zach
quote:
my Chevron stock is worth $90K.
Nice return. Curious - how long ago did you inherit it?
Posted on 8/3/16 at 3:50 pm to AlexLSU
quote:
Do you have a big purchase you're eyeing?
Nope. I am going to keep it and roll over into my Vanguard taxable account.
Posted on 8/3/16 at 4:14 pm to Grits N Shrimp
quote:
my Chevron stock is worth $90K. Nice return. Curious - how long ago did you inherit it?
My dad died 24 years ago. He was a tool pusher and roustabout and took stock instead of pension. He would have had more but there was a lawsuit against Texaco re: Pennzoil.
My mom freaked out and made him sell 80 percent of his stock because she was convinced that Texaco would cease to exist.
He relented to her bitching. Two years after the Pennzoil suit the stock regained everything. It cost them a lot.
Lesson: Don't take financial advice from women.
This post was edited on 8/3/16 at 4:16 pm
Posted on 8/3/16 at 4:47 pm to Porker Face
quote:
Any investment should have a thesis. What is your thesis for investing in XOM? What is your time horizon? What is your target exit point?
Whoever down voted this should show themself and explain
Posted on 8/3/16 at 5:29 pm to lsufan1971
quote:
In the next 30-45 days I will be inheriting about 680 shares of XOM. My cost basis is around $82 a share. Also going to be getting about 50K in cash. I am going to use the cash to pay off some debt and add to my emergency fund. My question is should I hold onto the XOM stock or sell and put into my Vanguard non taxable VTSMX account?.
I have maxed out my and my wifes Roth for the year. I am maxing out my Simple IRA at work. The wife has a 401k that isn't matched at work and she is doing about 6% contribution there. I have 529 for the kids and in pretty good shape there.
I'm in the camp where you should keep it. However, If you want to diversify away for XOM or oil, just take your dividends and instead of reinvesting them find a new stock you like to reinvest them into each quarter or payout.
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