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Forum » Should I just cash in all investments before it’s too late ?
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Thread: Should I just cash in all investments before it’s too late ?

post 1615741231 09-06-2020, 01:51 PM
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#1
  1. MajorTendonitis
  1. MajorTendonitis
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Should I just cash in all investments before it’s too late ?

Guys I took a buy out from work and have my sun life pension in other investments. I’m thinking that with this pending and imminent financial disaster thats on the horizon , that maybe it would be a good idea to cash everything out while I can .
The bad news is it would be 50% taxed , as would my wages this year , as I just started a new job .
But I’m almost 60 years old and can’t wait for a decade in order for things to recover, if they even do .

What do Misc financial experts?
Back with my Fam
post 1615741581 09-06-2020, 01:55 PM
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#2
  1. GordonXXX
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  1. GordonXXX
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IMO -

it doesn't have to be all or nothing - all in or all out. i say put your age in bonds. age 60 = 60% bonds, 40% stocks. then rebalance every year. or you could do 70/30. you should have some stocks exposure in order to get some growth to combat inflation. assume you will live until 90. i've done the best with what you've provided. be diversified. cash+bonds+stocks.
post 1615741711 09-06-2020, 01:56 PM
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#3
  1. MetroBrah
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At your age, you're supposed to be like 50% in bonds based on prevailing personal finance standards. Take your age and then subtract from 120. That is the percent you should have in any instrument that is tied to stocks at any given time. I would start there if you haven't already.
post 1615741891 09-06-2020, 01:59 PM
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#4
  1. GordonXXX
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don't cash out your retirement plan and pay taxes like a dummy. leave it sheltered to grow tax free. and do both bonds and stocks.
post 1615741931 09-06-2020, 01:59 PM
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#5
  1. Humungus
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So we're in a bubble but a) Trump will win again unless dems just blatantly over the top have dead people voting b) the entire global investment world needs to shove all in to US stock markets because where else are they getting returns c) Trump/Kudlow will always throw everything and kitchen sink to keep markets inflated.
post 1615742181 09-06-2020, 02:01 PM
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#6
  1. japzz
  2. The CableFly Effect
  1. japzz
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You yourself already hit the nail on the head. Return is always a reward for risk, in a perfect market higher return means it's a riskier investment.
For a 20-40 year old risk is fine because markets recover 30% annually after value dropped 60-70% in a crisis.

And in the end, spread over time, the net result is investments in stocks receive an annualized 8%.

But you indeed do not want to be in anything with the potential that value drops 70% and you don't have the time anymore to wait for recovery. Recovery can also take time, and not set in immediately in the years after the crisis
More plates, more dates
soundcloud.com/hyperdry
post 1615742311 09-06-2020, 02:03 PM
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#7
  1. MajorTendonitis
  1. MajorTendonitis
  3. Join Date: Jan 2016
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Thanks guys, will rep on recharge
Back with my Fam
post 1615742711 09-06-2020, 02:07 PM
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#8
  1. japzz
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Also cashing out might feel bad if you have cashed out and then a couple years it keeps going well. A crisis doesn'thaveto happen so you just have to make the call and then have peace of mind with whatever happens next.

Else you might want to rush back in after a while because you feel like you're missing out, and might forget a bit why you got out in the first place (personal experience). And then it feels extra fukin stupid because you initially saw things going sour was a real possibility
More plates, more dates
soundcloud.com/hyperdry
post 1615743101 09-06-2020, 02:11 PM
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#9
  1. IronProdigy
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You'll only be taxed on your gains but holy sht at 50%. I would double check that number because that seems unreasonable. The US long term gains are taxed at 15% for reference
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