Last week, Shane received 18 shares of his company’s stock as a bonus compensation for his extremely hard work on a project last year.
This is the first time we’ve owned stock in this form. It’s just a piece of paper with the details of the stock on it. So we’re like…!?!? What in the world do we do with this?
The stock is at an all-time high and pays quarterly dividends. Right now, it’s about $40/year in dividends.
We could sell it right now by taking it to a brokerage (our bank could probably help us with this).
I think we’re going to hold it, though. There’s nothing we want to buy right now. It probably will continue to grow somewhat, so that when we are ready to spend it, hopefully it will be more.
But it’s an amount that if it does go down, it wouldn’t be a devastating blow. It’ll probably just make me cranky for a day.
So for now, we’ll leave it alone and watch and see what it does. Maybe we can maximize his bonus this way.
Many financial advisors say that owning individual stock isn’t the best idea — there’s just too much risk involved and you’ll probably do better owning mutual funds where things are more balanced.
We’ll pay taxes on it this year, and taxes on the dividends and taxes on the (hopeful!) gains when we do cash it out.
What would you do in this situation? Do you own individual stock?