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On February 28, 2026, “a war began when the United States and Israel launched surprise airstrikes on multiple sites and cities across Iran, killing Supreme Leader Ali Khamenei and several other Iranian officials. Iran responded with missile and drone strikes against Israel, US bases, and US-allied countries in the Middle East” per Wikipedia.
Soon after, the Strait of Hormuz was closed to shipping, and by March 10, 2026, crude oil increased from $67 to $87 per barrel. Now, a cynical investor might think the timing of these airstrikes might have more to do with changing the direction of the news cycle. I instead thought it might be an innocent opportunity to sell some of the 3,500 ExxonMobil (XOM) shares held in my 401(k) account.
Now, if these shares were held in my Charles Schwab account in the time I typed the Cramerian words “sell . . . sell . . . sell,” I could have sold some of my shares and returned to watching Executive Suite on TCM. But as all of my shares were held by Voya Financial, I knew it would be slightly more problematic.
So on March 10, 2026, I logged into my account with three questions that needed some answerin’:
So I then decided to call the 877 number and initiate the interminable sell by phone process. The first time I was connected with a Chartered Retirement Planning Counselor (CRPC®) who was more interested in “providing retirement solutions” than lightening my dependence on fossil fuels. When I mentioned that I wanted to sell some XOM shares, he immediately transferred me to someone who put me on hold while she determined what needed to be done, until I hung up five minutes later. The second time, I was connected with a different CRPC®, who connected me to someone who walked me through a 20-step process of how I might be able to sell shares online myself, until I lost the thread of it all and hung up. The third time, I was connected to another CRPC®, who connected me to someone who eventually sold 29.15 shares (1% of my shares), informed me that I could only sell my XOM shares twice per calendar month, and that the next time the process should take less than 40 minutes.
Since I now only had one bullet left, I then waited until March 26, 2026, when crude reached $94, XOM $165, and my gut said: “Sell some more shares, ya greedy bastard.” So, I then sold another 127.995 shares (5% of my shares) of my highest cost basis shares. The process was a little smoother as I was only disconnected once. Now, unlike Charles Schwab, selling isn’t instantaneous, more like tomorrowtaneous as my sell price was the following day’s closing price.
After I got off the phone, I started to feel a little unpatriotic. As though I knew it was best for all concerned that the “conflict” become a little less heated and the Straits of Hormuz reopened, part of me wanted XOM to remain the same price for the next 26 hours (or slightly . . . increase).
So I decided to take matters into my own hands and reach out to a former ExxonMobil colleague to see what he could do to ensure a 26-hour price freeze. He mentioned something about using helium to maintain the share price. I knew ExxonMobil would never contemplate such ridiculousness, as helium was quite expensive. I texted back about a more ExxonMobilish stratagem: immediate opex reduction and/or workforce reduction.
He asked me to call him to discuss further, when he hopefully mentioned that he was hopeful that the “conflict” would continue, as it was the best way forward to ensure Middle East peace. While this sounded quite positive for my share sale, when I asked if he was planning to enlist to affect this rosy future, he mentioned that he was too old. I then helpfully noted that, quite coincidentally, the U.S. Army had raised its maximum enlistment age to 42, and many Americans lied about their age to fight in World War II.
Either way, my dream came true as crude oil increased $6.44 a barrel the next day, with XOM increasing $5.56 per share.
As I would have to wait until next month before I could reload my shiny, slightly used XOM red, white, and blue Derringer with two new bullets, I made a note on the calendar for April 1 to “Sell without remorse.”
Via the comments, I’ll provide updates as my shares of XOM are culled.
“Nobody tells those guys what to do.”
– President George W. Bush, regarding ExxonMobil
How many of us own shares in Xom? Admit it!
XOM had been on my sell list for a couple years as part of my ongoing effort to whittle our individual equity holdings down to just a handful of stocks. This is all part of the long term and nearly completed goal of being (almost) purely invested in low cost index funds. The rise in XOM’s price this year offered a reasonably nice exit to an otherwise mundane holding.
Not sure I follow the intent of your question Nick. Many or most of us own a bit of XOM if we invest in a broad based mutual or EFT’s. For XOM (Exxonmobile) the current ownership percentages, approximately, for three common ETF index are VYM (Vanguard High Dividend Yield Index) 2.6%, VOO (VG S&P 500 index) 1.0%, VT ( Vanguard Total World Stock Index ) 0.5%.
My understanding is Michael was an employee of XOM and his 401(k) likely has high ownership of his former employer. If so, why he has not diversified within his 401(k) would be an interesting topic to me.
§ 1.401(a)(35)-1 provides diversification requirements for certain defined contribution plans.
Nick, XOM used to match the first 6% of 401(k) contributions with a 7% match, if the employee took the 7% in XOM stock. That’s what I did for many years. After Enron, it was changed to allow a 7% match no matter how an employee took it. At that point I started taking the match in various index funds (where I was putting the balance of my contributions). I never sold my XOM shares to allow for a future NUA. Now that I realized that NUA is not very useful, I’m (very) slowly selling my XOM shares.
If a future NUA has limited value to you then if you are concerned about the concentration from owning a high percentage of XOM I would hope you have the option to diversify within your 401(k). Before retirement I previously had some 1040 tax clients whose 401(k) plans/funds had lower expense ratios than what is available at Vanguard so leaving their funds in their 401(k) made more sense than rolling to a 401(k).
Xom is an evil oil company and I own it and feel guilty about owning it. Same for KO which I owned from my teens but feel guilty at how good n investment it’s been. Probably not as good as spy but good enough.
Nick Politakis, Thanks for your comments but I need to clarify things: XOM supplies the world with a much needed product that is required by all aspects of civilization–a product that starts off in some of the most dangerous and unfriendly places on the face of the earth. A product that costs at most $4.00 a gallon.
KO on the other hand manufactures a product that is completely unneeded by civilization and costs over $7.00 a gallon.
I agree with you about KO but XOM is involved in climate deception since it knew about global warming risks 60 years ago and ranks as one of the top global greenhouse gas polluters.
On July 17, 2026 (with WTI closing at $83.43/bbl.), I sold 18 shares at $148.00–all the shares that were my last dividend payment. As XOM shares are currently at $160.64 (WTI at $83), I’m wondering if I should sell a little more or just wait and see.
I’ve made this comment to provide a 401(k) update but also in a Quinnian effort to have as many of my posts as possible appear on the Humble Dollar homepage.
Glad you updated. When I read about your first sale, I told myself I should just make a call and sell some employer stock so that first experience is out of the way. So this is a reminder, although it sounds bad enough I probably still won’t do it…
I gather your sell target hasn’t dropped, but rather you’re selling your dividends as soon as they’re reinvested.
While NUA is a neat concept, I always thought it was difficult to put the circumstances together for it to deliver any value. It seems you kinda need the stars to align for it to make sense – circumstances like:
1) You really want/need to withdraw 401k) money because it only works on lump sum distributions – 401k balance to zero
2) Shares need a really low cost e.g. market value 5-10X of cost
3) Then when you actually sell the shares, you need to have really low income in the sale year, so that appreciation can get capital gains in the zero rate bracket.
Alternatively, maybe you have really high income (35+% bracket) and you want less ordinary income, so capital gains rate of 15-20% on the share appreciation ends up looking pretty good. That’s still a lot of taxes.
If your 401k plan allows, consider a partial rollover on all the other investments except the shares, and then only distribute the shares to you to get the NUA – make sure lump sum distribution in same calendar year. Whatever you do, its seems hard to make NUA be an advantage.
On April 30 (with WTI closing at $105.07/bbl.) I sold another 10% of my XOM shares @ $154.413 (up nicely from it mid-month low of $146.44). Plan is to continue selling next month.
On April 01 (with oil at closing @ $101 a bbl, down 14% from the prior day) I sold 10% of my shares of XOM at the April 02 closing priced of $161.65. This was below the all time high of $171.47 on March 30, but better than today’s opening of $153 (with oil down due to the reopening of the Strait of Hormuz).
Nice. As you know I always enjoy your posts. If you get a chance, I (and I think others) would love to hear about your experience with / plans to use the NUA strategy. I think it’s one of the most complicated and/or misunderstood ideas in personal finance.
Ben Rodriguez, thanks for the kind words. Back in 2024 I wrote an article about my NUA journey. With XOM trading near all time highs, NUAing more of my low cost basis shares might make sense, though the current plan is to let it all ride, keeping my 401(k) and strategically selling XOM shares. Please feel free to ask specific questions here, or in my linked article.
Here’s a podcast episode on the topic, from Ed Slott & Jeffrey Levine: https://open.spotify.com/episode/0C0CfDdTmFKsR07DBLkuJu?si=2PpP8uw1SJW45ijpYlSJxQ
You did the right thing, always sell some shares when the shares reach new highs. Then if they go higher sell some more. And also on the other side of the coin, buy when shares are low, like 10% a correction or 20% lower a bear market. That seems to always work.
Geopolitical shocks have a way of forcing clarity—especially when it comes to personal finances and long-delayed decisions. When the war in Ukraine began, I finally moved forward with applying for a green card for my husband after more than a decade of marriage. At the time, we were living within a 12-hour bus ride of Kyiv, and the sudden proximity to conflict underscored a reality: relying on the limitations of a tourist visa left us exposed and it was something we had meant to do. Securing the option to stay longer in the United States was no longer just bureaucratic housekeeping—it became a way of dealing with new uncertainty.
Now we can check that off our to-do list.
Since you are selling stocks in your 401k why do you care what the cost basis is?
Jim Burrows, I want to keep the option to convert my 401(k) to an IRA using NUA and since NUA is only useful for the XOM shares with the lowest cost basis, I am selling shares with the largest cost basis first.
Michael, got it and thanks for answering. Perhaps an idea for another article. Don’t think I’ve seen anything about Net Unrealized Appreciation (NUA) rollovers on Humble Dollar.
Jim Burrows! I think you missed this very salient NUA post. The author is a little cynical, but I’ve heard he sleeps like a baby.
That is indeed a very salient article. I wonder about a sequel given the stock price is now so much higher than when you considered it before. As you mention preserving the NUA opportunity, I gather you’re not inclined to do it now.
A couple of take-aways.
Your post exemplifies why I prefer a self-directed account. I can initiate a trade any time, day or night. On the other hand, this may result in more frequent trades, which can be harmful to an account.
I switched from several oil/energy stocks to an ETF several years ago. I do own shares of Energy Select SPDR XLE.
I am averse to certain companies and geographical areas. For example, I avoid Chinese stocks, and I don’t own indexes because I don’t want to own certain companies that have used cheap and sometimes slave labor. I also don’t want to own gaming, alcohol and similar stocks.
Using your post title, the stock market has a lot of what one might define as “blood money” but like diamonds, most of us prefer to look the other way. It is nice that we do have so many choices in which to make money.
Michael, I enjoyed your article. Do you sleep well at night? I’ve been noted, on occasion, as something of a moral black hole, though you have me beat by aces.
Conflict can be slightly annoying, of course… one day your commodities are on a rip and before you know it, peace has broken out and your next trade isn’t worth the effort. Simply not good sportsmanship for you in my opinion.
You should definitely diversify heavily into defence contractors. Those munitions need replacing pronto, and you might catch both sides of the conflict cycle rather neatly. Second quarter profits should be solid come peace or resupply.
I guess, for some, there’s always a bright side, when you dig past the bodies.
Mark Crothers, After selling some of my shares of ExxonMobil at an all time high, I’m now sleeping on a bed made of money. Thanks for the stock tips, but I’ll stick with index funds. BTW: If you screen out companies that have used cheap . . . labor, I’m not sure they’re any companies left.
Glad we’re aligned on index funds, though my defence sector pitch clearly needs work. I’ve been told I have the look of someone who’d try to lure you into a pump and dump, which is a reputation I’m apparently doing nothing to dispel. The article link in your reply was a welcome bonus; it made the Guinness 0.0 almost convincing…which, in a bar, is really the best you can hope for.