My mom's new FA is recommending that she sell her IBM stock. He told her it "wasn't doing anything for her". Apparently he said nothing about the >4% dividend because she didn't know anything about that. While it's true that IBM isn't doing too well these days, I'm naturally suspicious about this FA's advice, especially since he didn't mention the dividend.
I know the decision to sell may depend on other factors regarding her portfolio. I asked her how much IBM she had, how long she'd had it, and what the FA proposed she replace it with, and unfortunately she didn't know. Dad passed a few years ago, and she doesn't know much about her investments. She is 88 and in fair shape financially, with $4k/month coming in for another nine years from the sale of their business, and I think around $800K in investments, plus SS. She's not sure what her monthly expenses are, but I'd guess around $2100 or so, with rent and such.
IBM is off of recent highs right now, and opinions vary as to how their situation could change. I'm wondering if my mom should hang on for the dividend. Any thoughts on that?
I know the decision to sell may depend on other factors regarding her portfolio. I asked her how much IBM she had, how long she'd had it, and what the FA proposed she replace it with, and unfortunately she didn't know. Dad passed a few years ago, and she doesn't know much about her investments. She is 88 and in fair shape financially, with $4k/month coming in for another nine years from the sale of their business, and I think around $800K in investments, plus SS. She's not sure what her monthly expenses are, but I'd guess around $2100 or so, with rent and such.
IBM is off of recent highs right now, and opinions vary as to how their situation could change. I'm wondering if my mom should hang on for the dividend. Any thoughts on that?