Liquidate stock and pay off immediately or make monthly payments? via /r/personalfinance


Liquidate stock and pay off immediately or make monthly payments?

Short story:

I have ~4,900 due in back taxes. My current stock profolio (index fund) has a measly sum of that amount (took a hit this year). I can easily, with strict budgeting, pay 1,000 a month to pay it off from my paycheck. Should I liquidate the stock fund then rebuild it later or just buckle down and make the monthly payments?

Long story:

All my grandparents, except one grandmother, past within a year or two of each other. We ended up "inheriting" 2 house. One of the houses we currently live in. The other house is vacant and in fairly bad shape. I do home remoldeling and have no issues fixing the house by myself which is why my mother has offered to add me onto the title. The reservation I have is what is the best way to make progress on this house without hurting myself too much financially.

I really adore the house. It will cut my commute time in half and I will be blocks away from my college. It is also a large house (5 bedrooms and an apartment) so once it's fixed I can lease out some of the rooms.

I was going to rent a place close to work, but I can't take all my dogs with me (1 doberman, 1 pitbull, and a boxer) and no one will rent with my breed of dogs.

Putting my name on the title is definitely something I'm going to do since it will give me equal rights to the house, but my mom's stipulation is that I pay everything to the house other than some of the major repair jobs (she's paying to have the plumbing fixed and the floor torn up).

I have just shy of 5k in my index fund and the back taxes are just under 5k. I'd be liquidating my profolio (something I really don't want to do) or I can make monthly payment of 1k (harder to do, but I'd be able to keep my stock.

I think the answer is obvious, but I'd like to hear other opinions.

Submitted October 29, 2016 at 01:30AM by valkyriegoll
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J.R. Randall

J.R. Randall is an economist who resides in the Bay Area. He focuses his interest on range of economic topics. He has interest in deep sea fishing and art.