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Subject:  Re: VZ - hold or sell? Date:  10/10/2013  10:35 PM
Author:  Donna405 Number:  73486 of 101598

I had a similar problem recently, in deciding whether pay cash for a car, sell some stocks to pay for car or finance the car.

Since the interest rate to finance the car was 2.24% and my lowest paying dividend stock was 2.4%, I chose to pay 1/2 in cash (from emergency fund) and finance the other half. (I only took 1/4 of my ER fund.) Therefore, my dividend stocks are still whole and reinvesting the dividends 4 x yearly.

Although I have an ample HELOC, I would prefer not to use it, due to the fact that it is a variable interest rate (currently at 3.25%) and one never knows when the rates will increase. Plus, the interest rate charged by the bank for the car loan was quite a bit less than the HELOC interest rate.

Now, what is the yield on your mutual funds? Perhaps, you could sell some of the VZ and some of the mutual funds, but not all of either.

Donna (now rebuilding ER fund)
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