Ronstar
Moderator Emeritus
I have been a 12% owner in the civil engineering firm where I work since 1992. At that time, the stock ownership cost me 75k. We had 4 owners from 1992 -2001, and 10 owners since. I'm going into semi-retirement now at 52 working 4 days a week, gradually reducing to 0 in four years. The 2 senior partners are selling their remaining stock and retiring by Jan 1, 2009.
My dilemma is to determine the best time to sell my stock. My stock value is roughly 440k now. My share of profits has been in the range of 100k - 120k for the last 6 years. This year is very lean and I expect my share to be around 40k. Next year could be worse due to housing crash. My net worth is approx 3.3m that includes 1.2m of debt free real estate. FIRECALC works at 100% at 2m in investments 4 years out.
My gut feeling tells me to sell at the same time as the senior partners. After they leave on 2009, I'll be the partner with the largest net worth, and I feel like this stock ownership and associated guarantees are risky for someone so close to retirement. The senior partners are telling me to hold on to the stock. Although my ROI through my stock ownership exceeds that of alternative investments, should I sell my stock? and when?
My dilemma is to determine the best time to sell my stock. My stock value is roughly 440k now. My share of profits has been in the range of 100k - 120k for the last 6 years. This year is very lean and I expect my share to be around 40k. Next year could be worse due to housing crash. My net worth is approx 3.3m that includes 1.2m of debt free real estate. FIRECALC works at 100% at 2m in investments 4 years out.
My gut feeling tells me to sell at the same time as the senior partners. After they leave on 2009, I'll be the partner with the largest net worth, and I feel like this stock ownership and associated guarantees are risky for someone so close to retirement. The senior partners are telling me to hold on to the stock. Although my ROI through my stock ownership exceeds that of alternative investments, should I sell my stock? and when?