Suddenly Find Myself Cash Flush

Over the past couple weeks, I have found myself with a rare occurance these days - a slew of cash and no immediate plans for it. Our portfolio has been overweight in my employer's stock through vested employee stock options and earlier participation in an employee stock purchase plan. While I have a preference to reduce our holdings in my employer (as I hae enough vested interest in them with my career alone), the stock has just appeared too undervalued to me and I have been waiting for a richer valuation before "right-sizing" our holdings.

IBM's stock had begun to hit new highs in the past several weeks. As a result we first executed 300 options @ a $134 sales price. Then last week before earning we sold 50 shares from our ESPP at $140.97. As a result we suddenly find us with $14,000+ in cash to deploy or hold. Not a bad problem to have these days. We'll likely use this cash in our priority areas - reducing our debt level to boost cash flow, redistribute some to index ETF holdings, and some to fatten our emergency fund. Still need to figure out how much where and when though.

Related in Cash Flow:

Reducing Financial Impacts of a Job Loss (Jan 26, 2012) My wife was recently notified that the preschool she teaches at for a few hours a week is shutting down. It got us thinking about a more difficult scenario for us - the loss of my job. Given its by...

November 2010 Monthly Cash Flow (Dec 30, 2010) Im posting our monthly cash flow analysis given how tight things are these days with our downshifting to a single income and starting a family. I believe we need to continue to pay closer attention to our cash flow while...

October 2010 Monthly Cash Flow (Nov 17, 2010) I have started posting our monthly cash flow analysis given how tight things are these days with our downshifting to a single income and starting a family. I believe we need to continue to pay closer attention to our cash...

Comments (5)

Good work 2million. Your financial goals are getting closer every day. Your fans already have the banner waiting at the finish line, only it doesn't say 2 million, it says 8 million! hahahaah

Posted by Steve | October 21, 2010 6:43 PM

nice!

Posted by anne | October 21, 2010 7:51 PM

I believe there will be major pullback soon. Use your cash to re-purchase IBM

Posted by j | October 22, 2010 10:10 PM

j, 2million is a long-term investor. He doesn't worry about minor short-term blips in the market, with IBM or with anyone else!

Posted by Steve | October 24, 2010 10:28 PM

I feel your pain 2 million. I am sitting on 5 figure amount like you and can't seem to find an investment that motivates me to buy it. And, you are right, not a bad problem to have at all.

Posted by freedom6 | October 26, 2010 8:29 PM