My wife owns Fedex stock.....

[maybelooking]

So the wife has been given some Fedex stock over time. She has 300 shares of one type (basically when the stock was issues it was 208.00 a share and she will only earn whatever the selling price is above that amt.)

and 75 shares of another type (she will earn the full price on those shares)

She will be fully vested in the 300 shares in December and the other 75 shares in two years from now.

I have no idea how to decide what price we should try to sell at?? Its been as high as 314.00 at one point and now in the 250s. we would like to use this stock to pay on our mortgage. So we obviously want the best return we can get.

Any suggestions on how we can try to determine the best time to sell? Or is it just a crap shoot?

Thanks.

 

[Votto]

Well let's see, at least 4 more years of Joe Bidung massive inflation and spending.

I say sell everything and invest in repo, funeral homes, and guns.

 

[Cellblock2429]

So the wife has been given some Fedex stock over time. She has 300 shares of one type (basically when the stock was issues it was 208.00 a share and she will only earn whatever the selling price is above that amt.)

and 75 shares of another type (she will earn the full price on those shares)

She will be fully vested in the 300 shares in December and the other 75 shares in two years from now.

I have no idea how to decide what price we should try to sell at?? Its been as high as 314.00 at one point and now in the 250s. we would like to use this stock to pay on our mortgage. So we obviously want the best return we can get.

Any suggestions on how we can try to determine the best time to sell? Or is it just a crap shoot?

Thanks.

Geeeze, you ask for help but hold back too much information.

I don't know your age or income, but first of all, you should have the annual $1.50 per share dividend reinvested into buying more shares. It's called Dividend Reinvestment Program (DRIP) Your brokerage firm can set it up. That way you grow the number of shares you own and get even more shares moving forward.

Secondly, you didn't say how much your mortgage is, the interest rate, or what the interest payment is. How can anyone make a recommendation?

You need to ask your accountant what your capital gains tax wil be if you sell.

Without sellng anything you can write covered calls weekly for about $400 before Cap Gains tax and use that money to pay down your mortgae and still retain your stock.

So, based on the limited information, I can't recommend you do anything before talking to your accountant.

Info on covered calls: Covered Call Definition

What Is a Covered Call?​

The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this, an investor who holds a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the cover because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.1

 

[marvin martian]

So the wife has been given some Fedex stock over time. She has 300 shares of one type (basically when the stock was issues it was 208.00 a share and she will only earn whatever the selling price is above that amt.)

and 75 shares of another type (she will earn the full price on those shares)

She will be fully vested in the 300 shares in December and the other 75 shares in two years from now.

I have no idea how to decide what price we should try to sell at?? Its been as high as 314.00 at one point and now in the 250s. we would like to use this stock to pay on our mortgage. So we obviously want the best return we can get.

Any suggestions on how we can try to determine the best time to sell? Or is it just a crap shoot?

Thanks.

Make sure you understand the tax implications of both the stock options and the stock grants before you sell anything.

 

[JohnDB]

So the wife has been given some Fedex stock over time. She has 300 shares of one type (basically when the stock was issues it was 208.00 a share and she will only earn whatever the selling price is above that amt.)

and 75 shares of another type (she will earn the full price on those shares)

She will be fully vested in the 300 shares in December and the other 75 shares in two years from now.

I have no idea how to decide what price we should try to sell at?? Its been as high as 314.00 at one point and now in the 250s. we would like to use this stock to pay on our mortgage. So we obviously want the best return we can get.

Any suggestions on how we can try to determine the best time to sell? Or is it just a crap shoot?

Thanks.

Dow Jones Transports is the index it trades from and the price is usually tied to the whole index.

There's only a few factors that matter...

Your mortgage is likely at 3-4% interest rate...
Your home is appreciating(going up in value) at roughly 20% on average each year.

The stocks you mentioned being vested only partially in...I'm assuming that they are part of a retirement portfolio...
Which means that every $1,000 dollars that you remove from her retirement portfolio looks suspiciously like $600 after taxes and penalties issued to you by your least favorite uncle.

Transport stocks (like Fed Ex) are slated to do rather well. With the shipping crisis many have gone to air cargo which Fed Ex does well at. Meaning that even with increased fuel costs they are humming right along without as severe labor issues that many other industries are having. (They are having some)

So I would recommend leaving everything alone unless there is some sort of cash crisis in your home. Just keep paying the mortgage. You are making more money by doing nothing than doing anything else.

 

[JohnDB]

Geeeze, you ask for help but hold back too much information.

I don't know your age or income, but first of all, you should have the annual $1.50 per share dividend reinvested into buying more shares. It's called Dividend Reinvestment Program (DRIP) Your brokerage firm can set it up. That way you grow the number of shares you own and get even more shares moving forward.

Secondly, you didn't say how much your mortgage is, the interest rate, or what the interest payment is. How can anyone make a recommendation?

You need to ask your accountant what your capital gains tax wil be if you sell.

Without sellng anything you can write covered calls weekly for about $400 before Cap Gains tax and use that money to pay down your mortgae and still retain your stock.

So, based on the limited information, I can't recommend you do anything before talking to your accountant.

Info on covered calls: Covered Call Definition

What Is a Covered Call?​

The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this, an investor who holds a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the cover because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.1

For someone who understands very little about the market selling options is NOT the way for him to dive in... especially if they are part of a retirement portfolio. The exposure of risk is way too high for him and any profits he might stumble into are going to incur the same taxes and penalties as if she cashed out stocks.

 

[Mr Natural]

You could roll it into your IRA and leave it there and let it grow tax free for your old age.

 

[JohnDB]

You could roll it into your IRA and leave it there for your old age.

Those terms he used about being partially vested make me think they are already in a retirement portfolio.

 

[maybelooking]

These stock were given as a bonus if that makes a difference. They are not part of our retirement though I suppose they could be.

Correction. She actually MUST exercise them at some point (I can't remember the date)

 

[JohnDB]

These stock were given as a bonus if that makes a difference. They are not part of our retirement though I suppose they could be.

Correction. She actually MUST exercise them at some point (I can't remember the date)

Are these as part of a profit sharing program for longevity of employment?

Then what you can do is to have them transferred to a brokerage account if possible.

FedEx stock is one I would actually recommend for people to hold long term. FedEx purchased them in a funky fashion using options. (But that isn't relevant to you)
You can set up a brokerage account at Schwab or Ameritrade as easily as setting up a bank account.

But if you are insistent on cashing them in...

What you want to do is cash them BEFORE an earnings report that comes up quarterly.
Like a week before. That is unless the earnings report is expected to be bad...then wait until the day after an earnings release.

Earnings releases are the most volatile time for a stock. Usually causing them to go down. (Even though it is likely to be good news) there's forecasted earnings...look up the stock on Google

Your next Earnings release is scheduled for Dec 16th...and personally I'd wait and hold the fully vested shares until the 8th-11th and cash them out at that time (see what I did there?)

FedEx is in a channel of uptrend... meaning hold out for as long as possible. You are going to make money every week you hold them.

 

[MarathonMike]

maybelooking If I understand correctly, your effective profit on the 300 shares is currently 300 * (253-208) = 13500 before capital gains tax. 10800 after paying 20% tax. The other shares don't mature for 2 years so I assume you are leaving those alone. If your mortgage interest is high relative to the current mortage interest, you might entertain refinancing with part of the 10800. Not sure about pay down of your existing loan without the details. Good luck, free shares are always good!

 

[DudleySmith]

Getting out of debt is always the best option, period. If you feel lucky then you can gamble what you save in mortgage payments in the big casino. You will also have the option to reduce your home insurance policy as well, giving more flexibility to your finances, as well as more equity to borrow against if you really need to.

 

[Cellblock2429]

Getting out of debt is always the best option, period. If you feel lucky then you can gamble what you save in mortgage payments in the big casino. You will also have the option to reduce your home insurance policy as well, giving more flexibility to your finances, as well as more equity to borrow against if you really need to.

/----/ No one suggests for one second that the OP should sell his stock and take it to a casino and gamble. What a stupid suggestion. As far as getting out of debt is a good thing, sure, but if you are paying 5% interest on your mortgage, and can get a 10% return or better in the market, then that is a better option. Then you get out of debt AND retain your stock portfolio.

 

[DudleySmith]

/----/ No one suggests for one second that the OP should sell his stock and take it to a casino and gamble. What a stupid suggestion. As far as getting out of debt is a good thing, sure, but if you are paying 5% interest on your mortgage, and can get a 10% return or better in the market, then that is a better option. Then you get out of debt AND retain your stock portfolio.

Rubbish. The big casino is the stock market, but for dumbasses if you throw in a lot of jargon and imaginary numbers and a lot of bullshit about 'free markets', well then they can delude themselves into believing they know what they're doing, just like every other dumbass who went bankrupt, including Nobel Prize winners.

 

[Cellblock2429]

Rubbish. The big casino is the stock market, but for dumbasses if you throw in a lot of jargon and imaginary numbers and a lot of bullshit about 'free markets', well then they can delude themselves into believing they know what they're doing, just like every other dumbass who went bankrupt, including Nobel Prize winners.

/----/ You have no idea what you are talking about. But I've learned over the years talking to someone with a closed mind is pointless. So keep your money in bank CDs paying less than the inflation rate. That's not a gamble, because you are guaranteed to lose money. I'll keep my money working hard for me. BTW, I have safeguards in place to protect me in market selloffs.

 

[maybelooking]

/----/ No one suggests for one second that the OP should sell his stock and take it to a casino and gamble. What a stupid suggestion. As far as getting out of debt is a good thing, sure, but if you are paying 5% interest on your mortgage, and can get a 10% return or better in the market, then that is a better option. Then you get out of debt AND retain your stock portfolio.

I agree.....and im not trying to be difficult......and im obviously no whiz at investing....

/----/ You have no idea what you are talking about. But I've learned over the years talking to someone with a closed mind is pointless. So keep your money in bank CDs paying less than the inflation rate. That's not a gamble, because you are guaranteed to lose money. I'll keep my money working hard for me. BTW, I have safeguards in place to protect me in market selloffs.
View attachment 565826

This shit should be taught in high school!!!

Im oblivious.

I would LOVE to have the knowledge to make these stocks work well enough for us to pay off our mortgage......but with a single stock I know its just selling at the right time. And im not smart enough to know when that time is!!!!

 

[Cellblock2429]

I agree.....and im not trying to be difficult......and im obviously no whiz at investing....

This shit should be taught in high school!!!

Im oblivious.

I would LOVE to have the knowledge to make these stocks work well enough for us to pay off our mortgage......but with a single stock I know its just selling at the right time. And im not smart enough to know when that time is!!!!

/---/ I don't have an answer for you. After 40 years of investing, I've learned you can't time the market. I'm advising you not to sell the stock, hold on to it.
I don't know how you and your wife spend your free time, but you need to set aside a 1/2 hour a night and watch videos on Youtube. Search for investing in the stock market for beginners like this one Take notes and tune in or record CNBC in the morning and just listen to them discuss stocks and investing.
Get this book from the library, read it and take notes. Or, better yet buy a copy and invest in your future. Amazon product
Hopefully, I talked you back from the cliff before you sold your life savings.

 

[DudleySmith]

/----/ You have no idea what you are talking about. But I've learned over the years talking to someone with a closed mind is pointless. So keep your money in bank CDs paying less than the inflation rate. That's not a gamble, because you are guaranteed to lose money. I'll keep my money working hard for me. BTW, I have safeguards in place to protect me in market selloffs.
View attachment 565826

lol and you have no clue what those numbers even mean.

 

[DudleySmith]

Im oblivious.

I would LOVE to have the knowledge to make these stocks work well enough for us to pay off our mortgage......but with a single stock I know its just selling at the right time. And im not smart enough to know when that time is!!!!

Unless you're an insider there is no way to know 'when the time is right', same as not knowing what the next card is or the next dice roll, and that is why you need to get debt free FIRST, and not listen to some gambler on the innernetz who has spent 40 years not knowing squat and basically getting lucky once in a while trying to get something for nothing and now believes he's some shrewd savvy 'investor' or something just because he reads tout sheets.

 

[Cellblock2429]

Unless you're an insider there is no way to know 'when the time is right', same as not knowing what the next card is or the next dice roll, and that is why you need to get debt free FIRST, and not listen to some gambler on the innernetz who has spent 40 years not knowing squat and basically getting lucky once in a while trying to get something for nothing and now believes he's some shrewd savvy 'investor' or something just because he reads tout sheets.

/——: Sez the guy who drives across town to save 3 cents on a gallon of gas while sipping a $6 coffee.