younginvestor2013
Recycles dryer sheets
- Joined
- Feb 6, 2013
- Messages
- 226
With markets (and my portfolio) at all time highs, I have given thought to selling some equities and either letting the proceeds sit in cash or allocate to much more conservative investments due to the potential of buying a condo and needing down payment money.
What are your thoughts?
Only 2.5% of my portfolio (incl retirement funds) is cash/cash equivalent; the remainder is 100% equities.
Even with the home purchase consideration aside, I should probably allocate some more to cash/cash equivalents in my portfolio.
But my thinking/questions are as follows:
1. Usually the market ends the year with a bull run. If this year is no different, I could sell whatever amount necessary for a downpayment (probably not needed until the spring).
2. I am already "taking a bath" from a tax perspective this year since I sold 100% in February 2013 by pulling my money from money manager. My estimated tax due on that alone is $5,000, and if I sell more by year end, I will owe more in April.
3. Do any of you speculate a market drop in Q1 next year? I know most of your approaches are hands off and don't involve market speculation, but in my case (of needing money for a downpayment), wouldn't it be wise to set some of the gains aside to cash in case the market drops?
4. If I do sell some equities, should I just let it sit in cash or are there some conservative bond funds that might give me some better return in the 3-5 month time frame?
What are your thoughts?
Only 2.5% of my portfolio (incl retirement funds) is cash/cash equivalent; the remainder is 100% equities.
Even with the home purchase consideration aside, I should probably allocate some more to cash/cash equivalents in my portfolio.
But my thinking/questions are as follows:
1. Usually the market ends the year with a bull run. If this year is no different, I could sell whatever amount necessary for a downpayment (probably not needed until the spring).
2. I am already "taking a bath" from a tax perspective this year since I sold 100% in February 2013 by pulling my money from money manager. My estimated tax due on that alone is $5,000, and if I sell more by year end, I will owe more in April.
3. Do any of you speculate a market drop in Q1 next year? I know most of your approaches are hands off and don't involve market speculation, but in my case (of needing money for a downpayment), wouldn't it be wise to set some of the gains aside to cash in case the market drops?
4. If I do sell some equities, should I just let it sit in cash or are there some conservative bond funds that might give me some better return in the 3-5 month time frame?