UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev | Next
Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8883  
Subject: Re: The Sell 4% a Year in Retirement Rule Date: 4/17/2013 11:22 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
If you have to sell: Should you keep the best companies if they are overvalued? Or should you sell the problem companies at low prices?

When selling the best over-valued companies, unless they are held in IRAs, you will likely be dealing with capital gains tax.

Taxes and dividends need to be considered. If your (hypothetical) over valued company pays predictable and rising dividends that you harvest for living expenses, then it's probably prudent to think twice, and thrice, about selling. The consequence would likely be a dip in dividend income and capital gains taxes to boot. If, however, you owned, say, Berkshire Hathaway in an IRA, a company that pays no dividend, and the stock price reached the moon, it would make sense to skim a little off the top at least. In other words, it's on a case by case basis.

If "problem" companies are on unsound financial footing, with no redemption in sight, then it makes sense to sell them before thinking of taking the clippers to the flowers.

kelbon
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev | Next

Announcements

Motley Fool Income Investor
Are you a dividend-savvy investor? Check out our Income Investor newsletter.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement