Sold stock Think I did OK...

[WCB]

My company (Rockwell Collins) match on our 401K is in company stock. We are in the process of being bought out by United Technology Corporation for $30B. Stock will payout $140 a share with $93 and change in cash and the remainder in UTC stock. Today our stock was $137 and change so I sold it all. Making bet that after the buyout UTC will drop from where it’s at ($108 and change).
Also I didn’t realize that RC stock was 55% (we’ve been doing great for quite a while) of my 401K!! Max on one stock probably shouldn’t be over 10% of total so selling some was needed anyway.
I think I did good in selling at $137+ per. Time will tell for sure...

[BrandonA]

I agree

[AntlerCollector]

Sounds like the right thing to do.

[Walker]

Tax liability???

[boy wonder]

Tax liability???

Shouldn't be any, until you start withdrawing. That was a good lick, now let it simmer.......but I'm no financial guy!

[Burnadell]

Tax liability???

He said (implied ) that it is inside his 401(k).

[Drycreek3189]

Good news ! Now, I was just about to start a gofundme because Chuck Schumer hurt my feelings this morning (I was forced to look at him on tv). Would you care to contribute.........

[WCB]

Good news ! Now, I was just about to start a gofundme because Chuck Schumer hurt my feelings this morning (I was forced to look at him on tv). Would you care to contribute.........

I started a gofundme just cause I wanted to see if there are idiots out there. None so far...

And keeping the monies in my 401 keeps me from incurring a tax liability.

[jerp]

Sounds like a good opportunity to diversify. Sometimes it works out OK but being over concentrated in your company’s stock can be very dangerous - especially when you are approaching retirement age.

[Shane]

An old client of mine who has done very well over the years always says, "It's hard to go broke by taking a profit."

In other words, don't worry about it if the stock you sold goes up further after you sell. If you sold at a good time, especially if you needed to diversify more, you did good.

[PYBUCK]

You did great. I didn't do that when our company sold and took a beating. Lesson learned. Unless it is an all cash deal, where the buyout price is set, then sell. A cash and stock trade deal is no bueno for investors.