It is hard to sell stocks on down days

[flyingaway]

This is not to seek advices, but just share my feelings.
I am in retirement and have to sell stock funds each year to fund my retirement expenses. The stock market has been going downwards since late December and that makes it hard for me to sell after the turn of new year (for tax planning). I finally gathered enough courage to prepare to sell stocks on last Friday. But the market was down 1.54%. So I need to wait for another day to sell, just to feel better.

 

[rembrandt]

It could go down again, and you would feel worse.

 

[MarieIG]

I understand your feelings @flyingaway . Does looking at your cost basis / profits and seeing you have a significant gain help? Almost nobody can perfectly time the market. I know I can't.

 

[Stormy Kromer]

During my accumulation days I invested on the 15th day of the month for 30 years. I never paid attention to what the market did on that particular day.

I haven't started the withdrawal phase, but I plan on doing the same.

I do understand your point, but I can't control it and I don't want to worry about it. That said, I do have 2-3 years of living expense in MM that I would use of the market declined 10% or so.

 

[Aerides]

This is the main reason we planned to, and keep, a few years expenses in cash - we never "have" to sell on the bad days.

 

[Koolau]

Only fund I've been selling from is my 401(k). Since I don't sell individual stocks, I don't think about the potential "losses." Also, I know everything went up a lot last year, so I'm still ahead when stocks get sold to meet my RMD (plus.)

Taxes are easy as I know I owe on every nickel I take! Easypeasy.

 

[UpQuark]

I am in retirement and have to sell stock funds each year to fund my retirement expenses. The stock market has been going downwards since late December and that makes it hard for me to sell after the turn of new year (for tax planning).

Me too, I totally sympathize. If I compare to the previous January price it makes me feel better though.

 

[Rianne]

I always look at the S & P historical chart. Look at where it was 10-15 years ago. Are you really selling at a loss?

 

[plank2505]

Perhaps while you’re waiting, at least sell some covered calls at the price you would sell at?

 

[Chuckanut]

With the market up about 25% last year, even though it had dropped for a few days since its peak, I finally sold my RMD within 2% of the current high.

Nobody ever went broke taking a profit.

 

[jazz4cash]

I much prefer to sell when the market is rallying. The funds I need to sell are not for this year they will go into a cash bucket for expenses 2 yrs from now, so I am hoping the market recovers a bit. I might need a few months expenses since I have some CDs in that cash bucket that mature in July. It’s a tiny amount that won’t matter in the long run.

 

[Koolau]

I much prefer to sell when the market is rallying. The funds I need to sell are not for this year they will go into a cash bucket for expenses 2 yrs from now, so I am hoping the market recovers a bit. I might need a few months expenses since I have some CDs in that cash bucket that mature in July. It’s a tiny amount that won’t matter in the long run.

Selling during a rally means you're probably gonna miss out on some value increase! No way around it. There is NO perfect time to sell - just like you can't really time the market.

 

[DrRoy]

I get that feeling also. Go ahead and sell 1/2 or 1/3.

 

[Dtail]

In 2026, the plan is to sell some stock for part of our living expenses. Not sure yet if I will sell monthly or all at once. Either way, I will pick a date(s) irrespective of market conditions.

 

[disneysteve]

No reason you need to sell on any particular day and you don’t need to do it all at once. You could sell 1/12 of what you need every month, kind of the opposite of DCA when you’re accumulating. Plus your cash position is there to prevent you from having to sell in a downturn. Draw from that and wait to sell if you prefer.

 

[frayne]

I empathize with you, Flyingaway. I reset my asset allocation (AA) whenever it deviates by 5% or more from my target. Last year, I rebalanced about three times to get back to equilibrium. Doing it this way helps me avoid the situation you're describing. Additionally, I keep a few years' worth of living expenses in a five-CD ladder, which prevents me from having to sell during a down market.

 

[TheWizard]

I no longer have to sell investments for living expenses; pension/annuity plus SS covers everything.
Back before I started SS at 70, I had an automatic withdrawal setup for a few thousand dollars on the 15th of each month. It sold pro-rata from the various mutual funds I had in tax-deferred, whether the market was up or down.
It worked just fine ..

 

[Alex The Great]

One way to feel better is to sell those equities which come down and near the cost basis. But for that, you need to have plenty of individual stocks. Another way is to collect dividend, no matter market is up or down. This is actually what I do, in combination with CD interest and savings cash.

 

[Texas Proud]

Well, answering the original question... no, it is not hard to sell stocks on a down day... just put in the order and they are sold...

IMO the ups and downs of a single day is just noise... if you are selling $10,000 and the market is down 1% you are losing $100... meaningless IMO...

 

[Golden Mean]

I sold for the year on Jan 2 without hesitation. I've think the coulda/shoulda/woulda of trying to time the market is the road to misery.

 

[jazz4cash]

Selling during a rally means you're probably gonna miss out on some value increase!

Yup, but the market is in rally mode most of the time so it can be tough to do otherwise. It can be a balancing act between head and heart.

 

[Koolau]

Yup, but the market is in rally mode most of the time so it can be tough to do otherwise. It can be a balancing act between head and heart.

Yep. Always is. I just look on the bright side that I have things to sell!

 

[flyingaway]

Made the sell today!!!