Author Topic: Sell stocks?  (Read 2144 times)

GalTexas

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Sell stocks?
« on: September 23, 2015, 01:43:44 PM »
My husband has about $3k in stocks he received from an old employer.  It is currently in an e-trade account. 

We have about $100k in student loan debt.  Do you think we should cash out the stocks to pay off some of the student loans OR do we keep the stock? 


MDM

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Re: Sell stocks?
« Reply #1 on: September 23, 2015, 02:01:03 PM »
Do you think the stock's growth rate will be higher (in which case, keep) or lower (in which case, sell) than the interest rate on the loan?

GalTexas

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Re: Sell stocks?
« Reply #2 on: September 23, 2015, 02:05:41 PM »
Good question - my guess is the stock rate is higher.  It's Apple stock.


DaveR

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Re: Sell stocks?
« Reply #3 on: September 23, 2015, 02:19:03 PM »
Is this the only stock you own? Sitting there by itself, lonely in an e-trade account? Simplify your life and close out the account.

Stock returns aren't guaranteed, but interest payments on debt isn't going to change. I say sell it and pay down the debt. A single stock (no diversification) is high risk.

darkelfx

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Re: Sell stocks?
« Reply #4 on: September 23, 2015, 03:01:36 PM »
My husband has about $3k in stocks he received from an old employer.  It is currently in an e-trade account. 

We have about $100k in student loan debt.  Do you think we should cash out the stocks to pay off some of the student loans OR do we keep the stock?

Yeah, I thought about keeping investments that were earning interest > loan interest, but to be honest, it's not worth it.

Close the account and use the money to pay down the debt. The comfort you receive knowing you're paying less interest every year and that your $3k less in debt is worth way more than the measly returns/interest you're getting from investments.

Kaspian

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Re: Sell stocks?
« Reply #5 on: September 24, 2015, 09:25:07 AM »
If you check the account, I bet E-Trade is slapping you with occasional $75 fees for "low activity".  ...Which means you aren't trading actively so they're taking some money for free.  Yes, ditch it ASAP!

Gone Fishing

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Re: Sell stocks?
« Reply #6 on: September 24, 2015, 09:27:44 AM »
It's not in a IRA or other retirement account, correct?