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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75534  
Subject: Re: Allocation in a Portfolio Date: 6/9/2004 9:19 PM
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We have thought about exercising some of the options and using the proceeds to exercise and buy the rest and hold them. Or, could sell the company stock in the 401k and move it to the mutual funds which would make the ratio 56%/44%.

If you exercise options outside a qualified retirement plan, you will be responsible for the taxes on the full sale price, not to mention transaction fees. My guess is that in your 401k the company stock is actually a share of a company stock fund, unless you receive proxy statements the month before the annual meeting. If so, then you can sell shares of the stock fund and buy shares in another mutual fund without any transaction fees or tax consequences, since you will not be taxed on the value of your account until retirement distribution.

Fuskie
Who aggress that too many eggs in one basket is a rotten thing...
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