Is anyone considering/selling off stock with the market being so high? So tempting with a correction likely, but those pesky capital gains.....
I bought QQQ when it was low, that is a good gainer, one of the few things I did right, but we can’t affort the capital gains. Just got a redemption notice, more bonds were called.I sold some Friday. It was the QQQ's I have held since 2008. I have become a bit over exposed to the market with the recent gains so it was as much an allocation move. With the market going up now for over 10 yrs without a big correction I feel it is overdue. However I have felt that way for 4 yrs so take my opinion with a grain of salt. Also my income is low now but in a few years I will take SS and it will move up. Right now I can book quite a bit of capital gains and pay no taxes on it.
I did the same thing with my grandsons' college accounts, but mostly because they're 16 & 18 and don't have time to recover from a downturn. It hurts to see them miss out on new market highs, but I'm a Certified Financial Planner and have to follow my own advice!I manage my kids IRAs and moved them from stocks into a Low Duration Bond Fund...George
We are dollar-cost averaging out some of our investment because we have college bills. We are selling such that when the market hits a new high, we sell another tranche to have cash ready for the next school year. Our retirement funds remain in the market because we have 5+ years until retirement. We also have a hefty percentage in cash and bonds to balance this out.
I am glad we went against the conventional wisdom to sell everything before your kids enter college. We not only would have had a large capital gains bill during the Junior/Senior year in high school, but we would have missed out on the substantial gains over the past 3 years which makes this money last longer.
Risky? Maybe this wouldn't have worked if the market crashed but as a backup we have cash in treasury bonds paying 3 - 5 % expiring in 2032 which we could tap if the market tanks and we need to wait for the stock market to recover.
I do a rebalance way year to ensure I’m sticking to the allocation that allows me to sleep at night.
I’m 58 and just this year moved 25% into bonds as I’m 7 years from retirement. Magic 65 that allows me to have insurance vs having to pay for my own till I hit 65. I’m downsizing my house next year and moving to a condo so that I will no longer have outside maintenance and no longer have a mortgage
Although I’m not an investment specialist, I like your idea to diversify some into money market or T bills. Stocks do go up and down and the only way I find stocks work is if I’m not desperate to withdraw them. Timing is everything with those.
I have mine with a financial advisor with a large bank who manages it well. I know some folks (like Dave Ramsey) prefer to use small credit unions but I guess I am old fashioned. I just feel safer for some reason to use a large bank as I believe (maybe wrongly) a large bank is more stable.
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In the US we have FDIC insurance up to $250,000, so it doesn't matter if it is with a small or large bank as long as it is insured.
We have similar in Canada but many things aren’t covered like stocks, mutuals...from what I understand, savings accounts and maybe T bills are.
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Is anyone considering/selling off stock with the market being so high? So tempting with a correction likely, but those pesky capital gains.....
I do a rebalance every year to ensure I’m sticking to the allocation that allows me to sleep at night.
I’m 58 and just this year moved 25% into bonds as I’m 7 years from retirement. Magic 65 that allows me to have insurance vs having to pay for my own till I hit 65. I’m downsizing my house next year and moving to a condo so that I will no longer have outside maintenance and no longer have a mortgage
Our 31 year old son who pays no attention to his money has 100% in stock funds (401K and Roth IRA). I wonder what I should advise him?
Our 31 year old son who pays no attention to his money has 100% in stock funds (401K and Roth IRA). I wonder what I should advise him?
IMO..Nothing. At least he’s saving. He will naturally learn if he loses money
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