PWZ or CDs: WWYD?

[gayl]

FWIW I don't know fixed investments but I understand I'm ignorant. Here's my question: I sold 2000sh of PWZ* @ 23.17 on 9/28/22 & bought 105k -> 3% CD. It matures 11/3/22 & I'm thinking of repurchasing 2000sh of PWZ now at 22.71. And the rest into another 1 month CD bc I don't know what to do. Am I as foolish as I feel?

*As a Californian the PWZ monthly dividends were never taxed

 

[OldShooter]

FWIW I don't know fixed investments but I understand I'm ignorant. Here's my question: I sold 2000sh of PWZ* @ 23.17 on 9/28/22 & bought 105k -> 3% CD. It matures 11/3/22 & I'm thinking of repurchasing 2000sh of PWZ now at 22.71. And the rest into another 1 month CD bc I don't know what to do. Am I as foolish as I feel? ...

Warren Buffet: "Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell." ... "Lethargy, bordering on sloth should remain the cornerstone of an investment style."
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What problem are you trying to solve?

 

[Sunset]

FWIW I don't know fixed investments but I understand I'm ignorant. Here's my question: I sold 2000sh of PWZ* @ 23.17 on 9/28/22 & bought 105k -> 3% CD. It matures 11/3/22 & I'm thinking of repurchasing 2000sh of PWZ now at 22.71. And the rest into another 1 month CD bc I don't know what to do. Am I as foolish as I feel?

*As a Californian the PWZ monthly dividends were never taxed

I'm thinking this is a taxable account. Did your sale generate a tax loss or will you pay a capital gain on the sale ?

Look on the bright side, you will probably end up paying less for the PWZ than what you sold it for. It does seem you sold in a PANIC moment at a low point. What will you do if PWZ drops another couple of dollars in the next month ?

If you do buy PWZ, I would consider buying a Treasury, (probably not taxed in CA by State) with the leftover $$. Just a 2 or 4 month Treasury so will come due when taxes are due.

You may even want to consider just buying a bunch of Treasuries instead of PWZ, once you confirm the State tax free nature of Treasuries. You could buy various lengths of time (2 mo, 4mo, 6mo, 2yr... etc).

 

[gayl]

What problem are you trying to solve?

What to do with 105k November 3rd

I'm thinking this is a taxable account. Did your sale generate a tax loss or will you pay a capital gain on the sale ?



Look on the bright side, you will probably end up paying less for the PWZ than what you sold it for. It does seem you sold in a PANIC moment at a low point. What will you do if PWZ drops another couple of dollars in the next month ?



If you do buy PWZ, I would consider buying a Treasury, (probably not taxed in CA by State) with the leftover $$. Just a 2 or 4 month Treasury so will come due when taxes are due.



You may even want to consider just buying a bunch of Treasuries instead of PWZ, once you confirm the State tax free nature of Treasuries. You could buy various lengths of time (2 mo, 4mo, 6mo, 2yr... etc).

I got enough of a tax loss to wipe out my 2022 capital gains in SCHB. But I had been taking monthly dividends in cash when I add years of those to what I got I'm even. Actually I don't usually worry about taxes other than cap gains bc I have enough withheld from my pension.

Yes it's much lower now. Will look at 'tax free treasuries'

 

[Koolau]

What to do with 105k November 3rd


I got enough of a tax loss to wipe out my 2022 capital gains in SCHB. But I had been taking monthly dividends in cash when I add years of those to what I got I'm even. Actually I don't usually worry about taxes other than cap gains bc I have enough withheld from my pension.

Yes it's much lower now. Will look at 'tax free treasuries'

First World problems are the best problems.

Are you committed to similar types of investments?

 

[gayl]

Yes I want something that's tax-free. I pay enough .... Pension / SSA / RMD in a few years

I consider that monthly dividend DGD16s mad money (she lives with me). Rather than putting bunches aside for college I learned a strange game when her brother (who also lived with me) went to college. My income didn't count for FAFSA as I was not their guardian .... and he was eligible for a boatload of grants (FAFSA, music, LGBTQ, minority) so yeah not worried until she gets to medical school then I'm strongly suggesting Air Force. I could pay off half on graduation (his was super low .... now just 7800 that Biden is writing off). Worked for my sister. Have times changed that much??

 

[OldShooter]

Yes I want something that's tax-free. I pay enough .... Pension / SSA / RMD in a few years ...

Be a little careful here. Tax-free munis pay less than taxable bonds because the holder does not pay tax on the income. But if your personal tax bracket is low, you may end up with more money in your pocket by buying taxable bonds and paying the tax on the income. IOW, buying "tax free" is not a no-brainer. You have to look at the numbers.

And, sorry, I still don't understand what you are trying to accomplish with your portfolio changes.