Planning move and school

From: <SMabel555@aol.com>
Subject: Planning move and school
Date: Sat, 27 Jun 1998 23:36:37 EDT

Previous Article (by Subject): PC Software Advice Needed for Landlord Jacqueline.D.Richardson@Hitchcock.ORG (Jacqueline D. Richardson)
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Persfin-  I have a broad planning question for the group.

My situation:  I am currently a Mass resident but am planning on attending a
GA state school next June.  Since I'm in the military, I have the option of
immediately changing my tax address based on an 'intention' to move when I
leave the Army next year.  I currently have somewhere around $50K in
securities- some big gainers (Walmart and Idexx Labs) and a few 'speculative'
stocks that have mixed results.  Walmart and Idexx are both up over 100% since
I bought them, but I had been planning on long term holds.  I also have approx
$10 in back-load Merrill Lynch funds that have done well but I'll owe some
load fees upon withdrawl (mistake getting into these) and own about $5K each
in PBHG growth and 20th Cent Ultra.    I also have a traditional IRA that I
haven't contributed to for 98- planning to convert and begin a Roth (hoping
for the Mass tax bill, first). I also have approx $10K in a money market.

I plan to leave my $55K/year job next year for a one-year MBA program.  I will
be paying approx $10K for school  (Maybe on a cash-back credit card?) and
living off of my savings for the year.   (If I can become a GA resident in
time, school will only be aprox. $6K).  After a year I expect to be making
enough to live off of again (at least $55).

My question begins with what is the best method to decide what to sell or
where to get cash for living next year? If that question is too broad, what's
the best start point?   My current thoughts are to sell the smaller holdings-
some at losses.  This will help offset my gains for this year and give me cash
to get through most of the year.  Other people say sell Walmart since they're
at a p/e of over 30 and I've doubled my money in three years.  Finally, any
gains I take in 98 will be on top of my income.  Gains (or losses) I can wait
and take in 99 will be against a small income, since my income will end around
February.

My options:  

- - Keep my securities as-is, hoping for the traditional 10% gain and live off
of money market cash and maybe some 5% introductory credit cards.

- - Sell the smaller stocks (some at small loss) but keep the 'bluer' chips.

- -  Sell the bigger gaining blue chips and hold on to the speculation.

- -  Sell some of the Funds?  (I'll probably sell Merrill because I don't like
thier fee structure)

- -  Question:  What is GA income tax like?  I'll either be in Athens or
Norcross.  Will I also get tapped for automotive excise taxes, etc?

Finally, how are the big fund families about detailing your cost basis when
you sell?  Between dollar cost averaging and reinvested dividends, my 6 years
of investing will be darn hard to tally come April.   Will Merrill or American
Century help break them down?

- - I know this is unweildy but thanks for your thoughts.  Let me know if you
need more specific info.

Scott



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