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Old 02-04-2015, 10:47 AM   #1
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raise cash

I need to raise some cash for a project. Not sure where to get it and have a mental block for some reason. Need 6k. Where do I get it? Well, I can either sell some stock from my taxable account which will bring me back to my 50/50 balance or I can break a 5 yr. Pen Fed CD. The taxable gain from selling stock will be around 4k, of which will only be state taxed and cost me around 200 dollars. The Pen Fed CD which is yielding 3.04% will cost me a years worth of interest, which is 360 dollars. The CD principle is 12,000 dollars and I only need 6k. So I lose 3% opportunity on the other 6k. Selling stock I lose the dividend and growth opportunity of 6k. Of course I would be selling at or near an all time current market top. Suggestions from any of our brilliant sages out there? THANKS.
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Old 02-04-2015, 10:56 AM   #2
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Sell the stock.
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Old 02-04-2015, 11:14 AM   #3
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Try one of those crowd funding websites and get a bunch of well meaning strangers from around the world to pay for it.
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Old 02-04-2015, 12:12 PM   #4
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Sell the stock.
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Old 02-04-2015, 12:17 PM   #5
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Whenever I need cash, I just get a credit card access check. Right now I have one that charged me 2% upfront and 0 percent for 18 months. This works for me on cash flow issues as I do not ever spend my investments.


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Old 02-04-2015, 12:22 PM   #6
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Originally Posted by ripper1 View Post
I need to raise some cash for a project. Not sure where to get it and have a mental block for some reason. Need 6k. Where do I get it? Well, I can either sell some stock from my taxable account which will bring me back to my 50/50 balance or I can break a 5 yr. Pen Fed CD. The taxable gain from selling stock will be around 4k, of which will only be state taxed and cost me around 200 dollars. The Pen Fed CD which is yielding 3.04% will cost me a years worth of interest, which is 360 dollars. The CD principle is 12,000 dollars and I only need 6k. So I lose 3% opportunity on the other 6k. Selling stock I lose the dividend and growth opportunity of 6k. Of course I would be selling at or near an all time current market top. Suggestions from any of our brilliant sages out there? THANKS.
PenFed offers a CD (certificate) loan instead of breaking your CD, but I haven't looked into the details. I don't find info online, but I'm pretty sure I saw it mentioned in the docs they sent me during my recent CD purchase.
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Old 02-04-2015, 12:53 PM   #7
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Use your home equity line of credit until you can harvest a tax loss, or until the CD matures.
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Old 02-04-2015, 02:56 PM   #8
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Whatever keeps your AA in balance.
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Old 02-04-2015, 03:21 PM   #9
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If those are your only two alternatives then sell the stock. 3% 5-year CDs are impossible to find so it would be foolish to give one up. Does your state exclude a certain amount of gains from tax?

If you happen to have a cash value life insurance policy you could take out a policy loan. Or perhaps a personal loan from your local credit union.
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Old 02-04-2015, 03:44 PM   #10
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Sell the stock. But why a mental block at all about that? Can you explore that in this thread? Is it some old stock given to you by a deceased parent or something? Sentimental things like that do not belong in investing.
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