Ryan is with us in Texas
hey Ryan welcome to the Dave Ramsey show
hey Dave how are you doing thanks for
taking my call
sure man what's up okay well I have a
couple of restricted stock units they're
vesting in the middle of May and I just
curious what to do with them especially
I know you said if you're investing to
keep everything there and not withdraw
but since I'm getting the the shares I
would usually sell them but because it's
really bad I'm saying don't take
anything out I'm talking about your
mutual funds I'm talking about stock
investments that you wish you didn't own
or that I mean they're nice they're free
it's it's a good thing but if it's a
restricted stock unit it's probably an
initial public offering of some kind a
very young company and somewhat volatile
am I wrong this is more of a an
incentive a long-term incentive
oh okay we do okay all right so the they
just the only restriction was just to
get you to vesting not because they were
worried about the stock price of stock
hitting the market okay all right so
what's this worth when you cash it out
um the initial distribution I think
right now is twelve thousand okay and
where are you on your baby steps we're
on baby steps six okay
so it's extra money then yeah and we
have we have a baby due in May as well
so no that changes a lot Boca is the
stock down is it volatile describe its
patterns since the year that I was it's
been a year since I received the the
best shares and it's gone down $20 so it
was 25 ish and now it's about $6 whoa
yeah
well the market has not gone down that
much so the company's not doing well
yeah it's a toy and gas in Texas
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okay well here's the thing you're not
desperate for the money if you got zero
it doesn't change your life correct
okay it's worth $12,000 now but it was
worth five times that or say $60,000 a
year ago yeah
okay now so what we would have to do is
we'd have to think through is there a
reason to sit on it for 90 or 120 or six
months it's not something I want to sit
on the rest of my life but this could be
one of the worst possible times in your
industry in the last couple of decades
okay
some of that was brought on by the fact
that no one drove cars for the last
thirty days to mount anything so demand
for gasoline oil consumption has gone
dramatically it's off ninety percent or
something and for that reason that we've
got tankers sitting off the coast all
around the u.s. storing oil sitting
there and the oil companies are paying
them to store the oil just sitting in a
tanker they don't even want to offload
it they don't have a place to put it
because they're storage units are
completely full that's why that's house
Boyle went to negative per barrel you
following me you probably know all this
right yeah I've been watching it ok so I
think it's not a far stretch to say once
the economy starts moving again oil
starts being consumed your company is
going to be worth more if it doesn't
bankrupt in the meantime yeah and in
other words this time six months from
today I it wouldn't be a far stretch for
this to be worth double what it's worth
today yeah because it's just in a very
unusual economic situation right now and
you're in a very sensitive industry in
this particular time
so all that to say a you don't need the
money if it goes to zero we didn't lose
anything B I wouldn't buy it if I was
just walking up to buy stocks right now
but you own it I'm probably gonna ride
this until the fall and then whatever it
does buy whatever give yourself a date
whatever it does by October 1 I'm gonna
sell it then regardless I'm not gonna
keep kick I'm not gonna keep kicking the
can down the road but I'm gonna give
this thing a little bit of time to heal
you could double your money between now
and October would you agree with that
yeah and that's kind of what I was
planning on doing but I I was 50/50 and
I wanted to somebody else to weigh in on
it there is I just I've haven't had the
situation before and you know with the
economy the way it is I didn't want to
make the wrong choice either so what I
don't want to do is I don't want to get
in the habit of analyzing this and
kicking the can down the road and going
well I'm gonna try six more months and
I'm not trying on the air you know and
then you're all sudden you're investing
in all stocks long term which is not
what I would tell you to do even though
you work there but I I do think you're
in an industry that is artificially low
right now due to an economic anomaly
with that we've never seen before it's
not a recession it's not a depression
it's a suppression the government said
everybody stay home we could spending
money boom everybody stayed home quit
spending money and it destroyed sections
of the economy temporarily and that's
that oil is one of them and so that if
it was me I would hold it until about
October 1 and regardless I'd dump it and
congratulations on the new baby on the
way good question now I don't time
markets I don't jump in and jump out
depending on what I think the economy is
going to do but there's some rare
situations where you're in an unusual
situation like this where you just use
some common sense and some basic
economic understanding to make a call I
don't buy stocks based on I think
they're low and you know they're
artificially low I continually invest in
mutual funds
I put the exact same amount in this
month that I put in last month that I
put in the month before that I put in
the month before I'm very very steady
and right
get her on my investing I don't jump in
or out based on what's in the headlines
of the news that will cause you to lose
money don't do that and you don't cash
your 401 k's out right now because
you're scared
some of you cash them out at 19,000 it's
already back up to 24,000 down well
wasn't that silly no you ride these
things out and in his case we're gonna
ride is even an individual stock out a
little while longer