Key insights
- An investor is considering whether to hold an inherited position in American Electric Power (AEP) or reallocate the funds into existing Schwab ETFs (SWPPX, SCHD, SCHY, SCHA). The decision hinges on portfolio diversification and risk tolerance. Selling AEP would reduce sector concentration and align the portfolio with a broader market approach. Holding AEP exposes the portfolio to sector-specific risks.
I’m due to inherit about 200,000 dollars worth of American electric power within the next few weeks. I do not need the money so no need to cash out. My portfolio now consists of SWPPX, SCHD, SCHY and SCHA. Yes I use Schwab lol. Every now and then I might hold a few individual stocks just for fun but nothing of significance. My question is should I keep the inherited AEP or instead buy more of what I currently have. Not sure what to do. I am certainly open to talking to an advisor but just wanted some opinions as well