On Wed, 20 Aug 2008 16:26:27 -0500, Vic Smith
wrote:

On Wed, 20 Aug 2008 17:11:31 -0400, John H.
salmonremovebait@gmaildotcom wrote:



I'm not talking about taking money out of savings (CDs), but about selling
stocks. I believe the interest earned on CDs is taxable in the year earned,
not when the CD matures.

Yeah, but you have cap gains taxes on stock, no?
I' was talking IRA CD's, which are taxed as current year income.
Anyway, on the CD's, once you figure the tax hit and interest lost,
and figure the interest saved on the home note, there you are.
Easy.
With your situation, there's the potential of the stocks to increase
or decrease in value, and any known dividends. Future valuation
can't be determined.
One piece of advice I can give is "psychological."
If you sell the stocks, don't bother checking their performance
afterwards. It could hurt, or it could make you smile, but it doesn't
matter. Every day is a new day.

--Vic

If stocks rise more than 5 1/8% per year, then selling would be a bad idea.
(Actually, since the tax on capital gains is less than the tax on earned
interest, the % could be a little less.) The CDs I have are currently doing
better than the interest rate I'm paying, so they won't be used.

The decision is very dependant on what the future may hold for the stock
market.
--
** Good Day! **

John H