Should we retire?

After 6 long years, we have accrued about $500K in a pharmaceutical investment that has a 95% chance of passing FDA. It has received Priority Review status and will be the only drug in a very large market. Tomorrow it moves from the AMEX to the NASDAQ. Should we keep our investment and take the slight risk with the chance for huge reward, or should we take the money off the table and have a modest retirement? We have about $400K in equity in our current house and owe about $200K on our retirement property. We also have about $225K in other investments.

We are 40 and 42 and both have good jobs and no kids. Neither of us wants to work any more. Well, not for the time being anyway.

We both have the wander lust and basically need the stock to double to have everything we'll ever want for the rest of our lives. If it passes, it will do at least that. But, we could walk away today and live modestly.

What would you do?

If I were in youre shoes I'd take a slight risk for the huge reward.If it falls through youre still set up pretty good with equities and other investments,Plus youre still very young and if need be could work a few more years .It doesnt appear to me if it doesnt get approved youre out on welfare.Successful people seem to be risk takers .I'm not saying you should do it I'm saying if it were me I would !

Tough decision, But I'm a risk taker by nature. I'd hold out for FDA approval.

I would wait. Take a few moments and think about everything you want or living modestly and comfortablly. If you are that close, will a little longer hurt you.

Also if it does double and everything works out great for you just think of not only what you could do for yourselves, but what you could do for others if they were to need you to help them.

Good luck! I hope everything works out well for you!

If you have heard of dollar cost averaging to get money into the market you can use the same principal to get it out of the market.

The idea is that rather than taking it all out at any time you make a plan to take out equal increments over a predetermined length of time (say 10% of your stock per quarter). This means that after 10 quarters (2.5 years) you will have pulled your money out. You are guaranteed to get paid the average price of the stock for that 2.5 year period.

If I were you, I would shield my exposure by selling of some amount of earnings on the pharma. In addition, I wouldnt retire, rather I would find something that you and you spouse both love to do, like travel, and find a way to make a modest amount of money off it. Start running travel groups to locations you've already been. If you start drawing on your retirement account now, it won't last you until 60, especially if you live a lifestyle that is more costly than the one you live now. Traveling qualifies as that lifestyle. Good luck and congratulations for being a great saver!!!

ok first, whats this stock you are talking about, send me an email ilovestocks85@yahoo.com, and second to answer your question i would have to analyze the company and see if it can actually double, the move from AMEX to NASDAQ does show opportunity to make at least double, sure, I agree, but with pharmaceutical's its a risky situation, they can go to pennies within one hour of trading on bad news, no FDA, or no safety in drug found, whatever the case, send me the symbol, let me check it out, i have a huge knoweledge base in the equity sector...hope this helps, oh yea, and good job on your finances, seems like you 2 know what you are doing already with the real estate property...

If you are only 40, you are just entering the highest wage earning years of your life. You should work at least until 55. Most retirement consultants will recommend at least 500K for retirement at 65. I wouldn't retire just yet. Make sure to diversify your investments. You seem overly exposed to the real estate bubble that is bound to burst soon.

It is financially irresponsible to have such a significant amount of your entire portfolio in one company. Take (at least 50%) off the table tomorrow at 9:30AM EST.

Even if it triples after you've done so... you can't look back. It's better to have some "winnings" than lose the whole pot.

There are people that had $1,000,000 in Lucent stock (after working 40 years with them)..... that have only a small fraction today. Who would have ever thought... Don't forget about Enron, Tyco, Motorola, and many more companies where people lost significant percentages of their life savings.

YOU KNOW WHAT'S RIGHT FOR YOU AND YOUR SPOUSE. DON'T BE GREEDY. TAKE SOME OFF THE TABLE NOW!!!!!!!!