Inherited 25k-ish in stocks...

[mamadelbosque]

and now I'm trying to decide what to do with them. My dad & grandpa's advice (they were my grandmother's), is to simply hang on to them... but, they're in like altria, bristol meyers squib, phizer, huntington bank etc. And, to be perfectly honest, I'm not thrilled with owning parts of these companies, yk? We don't currently *NEED* the money, so if I sold them, I'd want to re-invest in something else. I just have no idea really *WHAT*... any advice? Any BTDT experience??

[littleplum]

If you had the cash, would you invest in these companies? If not, you should sell them and put the money into investments that you are happy with.

[philomom]

Sell those and buy green power or medical robotics.

[AndtheStars]

Here's my take...the money that was originally invested wasn't yours, but your grandmothers. The money that is yours now are the dividends being paid out. Unless you have the dividends reinvesting to buy more of the stock, you aren't actually investing any of your money with these companies. If I were you, I would keep the stock for now until you have a chance to find some companies that you are excited about and use the dividend money as a source of extra income or to buy stocks that you are comfortable with. I would also research the stocks current value compared to historical values to see if they are high/low right now. Because of the market, selling now might not get you as much money and hanging on for a year or so might improve the value. Or, conversely, maybe they are high and selling now would be a great move. Either way, I wouldn't jump to get rid of them just because your grandmother invested her money with companies you don't support. Just my

[velochic]

Originally Posted by dicksonley

Here's my take...the money that was originally invested wasn't yours, but your grandmothers. The money that is yours now are the dividends being paid out. Unless you have the dividends reinvesting to buy more of the stock, you aren't actually investing any of your money with these companies. If I were you, I would keep the stock for now until you have a chance to find some companies that you are excited about and use the dividend money as a source of extra income or to buy stocks that you are comfortable with. I would also research the stocks current value compared to historical values to see if they are high/low right now. Because of the market, selling now might not get you as much money and hanging on for a year or so might improve the value. Or, conversely, maybe they are high and selling now would be a great move. Either way, I wouldn't jump to get rid of them just because your grandmother invested her money with companies you don't support. Just my

I agree. This is good advice, IMO.

[Rosehip]

I would also consider the tax ramifications of your various options.

[sunnysandiegan]

Originally Posted by dicksonley

Here's my take...the money that was originally invested wasn't yours, but your grandmothers. The money that is yours now are the dividends being paid out. Unless you have the dividends reinvesting to buy more of the stock, you aren't actually investing any of your money with these companies. If I were you, I would keep the stock for now until you have a chance to find some companies that you are excited about and use the dividend money as a source of extra income or to buy stocks that you are comfortable with. I would also research the stocks current value compared to historical values to see if they are high/low right now. Because of the market, selling now might not get you as much money and hanging on for a year or so might improve the value. Or, conversely, maybe they are high and selling now would be a great move. Either way, I wouldn't jump to get rid of them just because your grandmother invested her money with companies you don't support. Just my

Excellent advice.

You can change the way the dividends are treated. If they are set up to reinvest right now, you can change that so you are not buying more stock which you feel is inappropriate.

Checking into the tax implications is a good idea, too.

[SuzyLee]

I used to be on a board for a non-profit and we invested some money in some type of humane/eco-friendly/etc mutual fund. All the stocks in the mutual fund had to meet certain requirements to be allowed in. It had nearly as good of returns (like 10% compared to 10.5%) as the "regular" funds.

Not sure if mutual funds are the direction you want to go. But if you don't want to actively manage your stock portfolio, they are probably a better choice, IMO.

[ASusan]

Agreed with Dicksonley. Try to be sure that the dividends for each are being reinvested. A check for $.25 every quarter is worthless, but when it builds up over time, it can be large.

Also, because you are a stock owner, you have a say in what happens in the company. For years, I voted to end animal testing in companies like Colgate Palmolive, Proctor and Gamble...eventually, share holders do get their ideas through. I vote every year for boards of directors (researched when I have the time - I like to see what else they do).

[MeepyCat]

If the list you've given is complete, that stock portfolio is seriously overweighted in health care. Whatever your opinion is about those companies, it would be sensible to diversify - exposure to a broader range of industries will help insulate you from industry-specific risk.

Talk to a CPA about the ramifications of selling, but my understanding is that your cost basis would be the price of the stocks on either the date of your grandmother's death or the distribution date (if that was elected by the executor of the estate). Usually, I would say that you probably don't have a ton of gains, but this past month has been a little nuts on the stock market. You need professional advice.

[JudiAU]

I would continue to keep your money in those stocks, reinvesting dividends until you are knowledgable about stocks and have good counsel. Many stocks have tricky tax issues + the market is generally depressed although there are swings. For instance, you might make future contributions to non-health care stocks as a way to diversify rather than sell the ones you own. Just don't be hasty.