Monday, December 17, 2012

Keeping My Parents' Fund and Stock Investments

Recently, my sister and I inherited some stocks and mutual funds from our parents.   For now, I plan to keep the exact investments that my parents had for a several reasons.

The first reason is diversification.  My dad's investment strategy was primarily focused on energy stocks, biotech and international funds, in which I previously had relatively little exposure.    Second, some of these stock and all the mutual funds pay dividends, which contribute to the goal of creating a stream of regular dividend payments.  In addition, the mutual funds distribute capital gain payments which can be offset by the carryover stock losses and therefore, no income tax is paid.   Third, the specific investments are a reminder to me of the many conversations my dad and I used to have about stock investments.

Finally, my parent's investments have provide a positive return over the past six years.    Therefore, most the specific stocks and funds have been good choices, and I expect them to continue to do well in the near term future.

For more on Strategies and Plans Ideas, check back every Monday for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2012 Achievement Catalyst, LLC


K. W. Callahan said...

Nice work!

Shawn @ Stock trading said...

I am a stock investor and my investment also includes diversification. Using stocks of different companies helps to avoid continue loss. Having a diversification in investment portfolio is another good idea that includes forex trading, Gold and commodity trading etc.