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Warpy

(113,165 posts)
14. Questions to ask
Mon Aug 28, 2023, 10:05 PM
Aug 2023

First, how long your dad held the stock, that has tax implications.

Second, how much income the portfolio is producing (the net worth doesn't tell the whole story).

Third, what's the risk allocation? Some stocks have wild swings, meaning the potential for fast money or big losses and others tend to sit there and not budge much no matter what the market is doing. You might want to change the ratio based on your age and your financial needs. Interest rates are up and most likely won''t crater again (it didn't work as advertised), so stocks aren't the only game in town, some funds in bonds, CDs and t-bills can reduce your risk if that's your goal, or you can increase your risk in the hope of increasing growth of the portfolio, if that's your goal.

Don't worry too much about the jargon right now. These questions will get you started.

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