Would you rather have Disney stock or DVC points?

[Ben E N]

The new plan is - $2000 in Disney stock, $3000 moved to mutual funds. As they grow, I could always buy more DVC points in the future, but I agree that it is much better to have money in waiting than to have a yearly commitment to pay more money when I already have DVC points to spend.
If a super cheap SSR resale contract comes up, it may tempt me, but I appreciate the feedback reminding me of the joys of dividends. That Disney stock was frustrating me so much that I wanted to just dump it, but keep it within the Disney ecosystem. I feel much more comfortable keeping just a little money there but moving most of it elsewhere. I had to hedge the move a bit and keep some money in Disney stock, just in case, but feel lot better having moved some of that dead weight, and not taking the plunge and spending it on something like a timeshare just because it was irritating me as an investment.

 

[KAT4DISNEY]

So looking at DVC points as an investment? I think you made the right choice - stock and mutual funds.

 

[Ben E N]

So looking at DVC points as an investment? I think you made the right choice - stock and mutual funds.

Thanks. That's why I went here for advice. I know there are some pretty darn smart and analytical people on these boards. I just had some pixie dust in my eyes after looking at our DVC plans over the next few years and needed some sobering up.

 

[Dean]

I bought into DVC just over a year ago, and already addonitis is hitting me. My wife and I have two younger children, 3 and 5 years old, and her parents are moving to Florida, so I know we will be taking trips there at least annually for the next 10-15 years.
I presently have just over $5000 in Disney stock just sitting around not doing much at all. That just so happens to be just enough to purchase 25 more points at our home resort. I am assuming the moment that I sell the stock and buy DVC, the value of it will sky rocket, and if I sit on the stock, it will stagnate and the price of DVC will go up.
Without trying to predict the future, which would you rather have? Any feedback would be appreciated.

Why not both? They do different things. DVC should come from discretionary income that one is going to spend on vacations over the years. Now it likely will be that you are spending more now because of the buy in but you should be spending either less or at least within you budget over the years on the DVC and vacation sin general.

 

[bwvBound]

$5k in stock pays you dividends
Points cost you m. fees

And that is one reason to own both. ;-)

 

[kboo]

And that is one reason to own both. ;-)

I was looking for a “both” option too. I feel like 25 points isn’t really enough to get you something noticeable UNLESS you find you are always in borrowing mode. Otherwise, it’s maybe 1 more night a year. I agree, that if I could go back with the benefit of hindsight ($106 pp for me) I would have bought more like 200-300 points. But at the time, it was the right choice for us, not because of finances so much as, we weren’t sure if dvc was for us and whether we’d want studios or 1brs. So we didn’t want to overbuy. Now our kids are 7 and almost 3, we are going to wdw as much as we probably ever will.

But anyway - unless you are a trader, I wouldn’t look at the value of the Disney stock except at a very macro level.

 

[Ben E N]

I was looking for a “both” option too. I feel like 25 points isn’t really enough to get you something noticeable UNLESS you find you are always in borrowing mode. Otherwise, it’s maybe 1 more night a year. I agree, that if I could go back with the benefit of hindsight ($106 pp for me) I would have bought more like 200-300 points. But at the time, it was the right choice for us, not because of finances so much as, we weren’t sure if dvc was for us and whether we’d want studios or 1brs. So we didn’t want to overbuy. Now our kids are 7 and almost 3, we are going to wdw as much as we probably ever will.

But anyway - unless you are a trader, I wouldn’t look at the value of the Disney stock except at a very macro level.

I would never suggest to anybody that they sell off all their investments in order to buy into DVC, so hopefully people viewed buying the points as a "both" answer, just less stock than they would have without the extra DVC.

As for the regret about not initially buying more, even more so I wish I had invested more when I was younger. Then I wouldn't have any worry about how many points I could afford to buy. I view it as a good thing that our regrets are that we didn't do more of what we did, whether that be investing or buying DVC, because that means they were initially good choices. Much better than "I wish I hadn't taken 96 month financing on my purchase of a Porsche that I can now never pay off".

 

[Frederic Civish]

Steady as the beating drum
We know Disney’s “going long”
Seasons go and seasons come
Buy more stock or DVC?

By the waters of Poly
In the mighty Bungalow
We make plans and it’s not free
Buy or Sell? We do not know

O Great Mouse, hear our song
Help us Choose the proper ways
Keep the Disney fire strong
Walk in Magic all our days

 

[Ecstatic Eeyore]

I would go with stock but not Disney as of late. I keep seeing people mention the dividends but there are so many better stocks out there than Disney if you are concerened with dividends.

 

[Ben E N]

I would go with stock but not Disney as of late. I keep seeing people mention the dividends but there are so many better stocks out there than Disney if you are concerened with dividends.

Thanks to the helpful suggestions by others and you, the majority of the money was moved to VWINX, which grew so well in the past, it's what allowed me to initially buy into DVC. I've now set one of my goals for the year at growing this fund a considerable amount. I did keep a little in Disney, as odds are very low it will tank, and I would be kicking myself if it doubled in value after I pulled everything out.
Hopefully after a few years of financial responsibility, buying more DVC points will be another no brainer like it was the first time around.

 

[bwvBound]

Much better than "I wish I hadn't taken 96 month financing on my purchase of a Porsche that I can now never pay off".

Good point. Sadly, I knew that Porsche (Boxster) fellow ...

 

[Bing Showei]

Good point. Sadly, I knew that Porsche (Boxster) fellow ...

[Sheepishly hides Porsche keys]

Kidding. I don't own a Porsche... um, I own two.

I'm lying again.

[Googles "Porsche vs. Subaru snow sleet Northeast winter" for self affirmation]

 

[Dean]

I would never suggest to anybody that they sell off all their investments in order to buy into DVC, so hopefully people viewed buying the points as a "both" answer, just less stock than they would have without the extra DVC.

As for the regret about not initially buying more, even more so I wish I had invested more when I was younger. Then I wouldn't have any worry about how many points I could afford to buy. I view it as a good thing that our regrets are that we didn't do more of what we did, whether that be investing or buying DVC, because that means they were initially good choices. Much better than "I wish I hadn't taken 96 month financing on my purchase of a Porsche that I can now never pay off".

That's why you don't finance luxury purchases, any of them, DVC included.

 

[JimC]

Own both.

Disney stock for future and it has done well for me over the years.

DVC for fun and it has held value much better than I expected

Different purposes, different funding.

 

[Wakey]

My DVC points have increased 30%+ in value over 18 months 65 to about 100). I rent at over 10% yield. So far it's not been a bad 'investment' given I would have been spending anyway $300- $500 a night on family accommodation on vacation. By 2054 though Disney stock will be worth more, my points nothing. But I'll have had more fun.