To all stockpickr's, I've just inherited about $60,000 worth of stock in US
Bancorp (USB). What should I do with it? I'm not hurting for money, so should I
leave it alone, reinvest elsewhere, or what??? Any suggestions???
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You have no compelling reason to keep it, since your basis was reset to the
market price when it passed through the estate, meaning you don't face much of
anything in the way of capital gains if you sell it.
What you do depends on your specific situation. If this represents your entire
portfolio, there's no way you should keep it all in one stock - ANY one stock.
In that case, I'd recommend opening an account at Vanguard and buying one or two
or three of their index funds. Or, if you want to manage it yourself, I'd
recommend selling 50k of the 60k and putting $10k into a handful of broadly
diverse stocks. Set up any dividends to pay out rather than reinvesting (easier
for taxes). And good luck.
If you plan on holding, consider writing some calls. May 32.50s are fetching 95
cents. Risk is that you miss a big up move. I do not see this as probable in
the next few months.
Best house in a bad neighborhood. So long as it's not too much of your portfolio
(stay diversified), it should be good to hold onto for the steady dividend. For
full disclosure, the stock is in the model portfolio of the Dividend Stock
Advisor newsletter that I write for TSC.
when working with this much stock i would hold. It will pay in the long
term..give it 2 years
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