I would like to know your opionions on if I should keep or sell my stock.
I have 460 shares with Sempra Energy (almsost 30K) Sounds like there are 2 or so shares added every month and the shares are worth around $54 they have jumped up in the last few years.
My spouse wants me to sell and put it in mutual funds because he thinks it is safer there.
I want to keep it where its been all this time and let it grow.
what do you think? Mutual funds or keep it where its been?
2006-11-13 02:38:43 · 11 answers · asked by jade r 1 in Business & Finance ➔ Investing
This is not going to be a popular answer, but I believe that this is the best recommendation... sell and put into a diversified mutual fund.
You said that the $30,000 is a "small fortune" to you - meaning that this is a relatively large amount of money to you. This means that you are relatively undiversified in your large "bet" in Sempra.
Will Sempra continue to go up? Good question. Nobody knows. Sempra is a natural gas conglomerate that has done quite well, rising steadily and resisted the drop that other natural gas companies have due to the collapse in the price in natural gas this autumn. It is fairly defensive given its heavy utility dependence, but has some riskier elements to it.
Ask yourself... Are you willing to take this large, undiversified company-specific risk? Are you counting on this money? What would you do if the stock went down 30%? Do you have needs for the cash flows in the near future? Would this mess up your retirement plans? Do you need to take on extra risk to boost you to your retirement goals because you're a bit behind? Are you so convinced of Sempra that you are willing accept the company specific risk, forego the benefits of diversification?
Only you and your spouse can answer that, but I think your spouse is right.
2006-11-13 03:02:36 · answer #1 · answered by csanda 6 · 0⤊ 0⤋
I would keep it for a little while longer and see if you can get the stocks up even higher because it sounds like a growing company. Mutual funds are somehwat safer but the safest thing would be to let the stock grow and increse in size and value and then when it's at a good price for you, sell it and put the money in a CD with a good interest rate. Then you'll have a nice little bit of money saved up.
2006-11-13 02:48:01 · answer #2 · answered by snowbaby 5 · 0⤊ 0⤋
Mutual Funds are not that much safer than where it is now. If she wants safety (which she is correct about) Mutual Funds are not the answer. I'd advise you to take a portion of the stock (remember you may have capital gains.) and put it in a Tax Deferred Fixed Annuity. You'll get good interest, and they are as safe as it gets. Keep the rest there and watch it closely. Hopefully it will do well, if not you still have your safe money
2006-11-13 04:11:52 · answer #3 · answered by Susan C 3 · 0⤊ 0⤋
Before you consider doing anything at all check out Sempra Energy. Investing in a mutual fund does not mean you'll make money. (Mutual funds can loose money !!!) The idea of a mutual fund or a "balanced portfolio" to spread you risk. Sempra Energy from what you have said sounds like a good company!!!!! As a general investing principle of conservative investing strategy is to buy and hold good companies.
2006-11-13 02:59:44 · answer #4 · answered by David M 5 · 0⤊ 0⤋
You seriously need to talk to a Certified Financial Planner or a Certified Financial Advisor. They will sit you down, look at your overall current financial picture, ask you some questions about your future and then begin advising in multiple options. If you need money now or in the near future, that would open one option, money to increase your retirement, money to fund kids' futures, etc etc etc. There are a lot more options than just mutual funds. It really 100% depends on your current goals, future goals, and life situation.
2006-11-13 03:03:33 · answer #5 · answered by dougzinboston 4 · 0⤊ 0⤋
Should diversify. The word "safer" scares me as that is not the issue. Diversifying your assets does lower risk but raising return still the key. Should still be in stock mutual funds with perhaps some gold (IAU) & Reits (SRO). If no IRA - get 1.
2006-11-13 04:12:37 · answer #6 · answered by vegas_iwish 5 · 0⤊ 0⤋
Sell some, keep some, spread your investments, spend some cash on yourself and go for mutuals and platinum investments( good now)also look at fine wine investments.
2006-11-13 02:57:29 · answer #7 · answered by Latin Techie 7 · 0⤊ 0⤋
Sell it. You can keep 100 shares if you want. But definitely sell at least half of it. This is my sincere advice.
2006-11-13 02:53:40 · answer #8 · answered by spot 5 · 0⤊ 0⤋
To avoid owing a large % in taxes, I would talk to a Financial Adviser.
2006-11-13 02:55:52 · answer #9 · answered by Look on the bright side. 5 · 0⤊ 0⤋
Consult a financial adviser
2006-11-13 02:46:02 · answer #10 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋