What should I do with my GM Stocks. I am very streesed to see my money going away?

Question

Please advise. I am almost loosing all my retirement money with GM Stocks?. What should be the right decision to make at this time? Stocks is falling every day like h**l? I do understand that moving my money out is not the proper decision, but what if I loose it all or if GM file CH 11.

Answer 1

I am really sorry about your losses but you should never have been concentrated in just a few stocks. GM is in bad shape, and no one knows if, when or how they will turn around. Please diversify your holdings more by buying some etfs like SPY or DIA at the very least.

Answer 2

well i hate to tell you this but it is a lesson well learned... this is why people need to start diversifying. You shouldn't had put all your money especially retirement into one individual stock. I would sell the stock right the loss of on your taxes... I would put the money into a diversified ETF, Index fund, or low expense ratio mutual fund.

Answer 3

First response is on point.  The money is already gone, and it is a crapshoot whether GM will ever recover. Based on its proclaimed plans (such as hydrogen power), there isn't a chance in h**l.  It may stagger on for a while if it can quickly switch to fuek-efficient small vehicles -- but it would have to sell a lot of these in a hurry to stay afloat.

Answer 4

Depending on how far you are from retirement will depend on what you decide to do.  If you retire soon, you might want to think about selling before you lose even more...however, if you retire in 10-20 years you might want to wait for the economy to pick up.

One word of advice, however, I would steer away from investing all your money in one account and choose, instead, to invest in a mutual fund.  They are more secure because your entire investment doesn't rely on the success of one sole company.  Like they say, don't put all your eggs in one basket.

Personally, I would recommend Vanguard.  We have our retirement plan with them in a mutual fund and have been happy with the results.

Good luck with whatever you do!

Answer 5

It was not a wise choice to put too much of your retirement

funds into any one stock, no matter how good that stock is.

GM is now at a 54 year low.  Their debt load is staggering, and frankly, their continued existence is in doubt.

To make things worse, their GMAC unit is deep in the credit mess, and if folks start walking away from their SUVs......

The UAW may have bargained for fantastic benefits for its workers, but they have destroyed an American Icon, and denied many thousands of people the opportunity of future employment.  But, unions don't look that far ahead.

If GM does declare Chap 11, your stocks will be close to zero.  They have to pay bondholders and preferred holders before they pay the common.

My suggestion is to cut your losses and sell.  Unfortunate that you had to lose, but most everyone with a retirement account is losing as well.

I, myself, am down almost 7% since the start of this year.

Answer 6

Anytime you buy stock it's always wise to by a PUT on it for insurance purposes.