Author Topic: Sell winners or spend cash savings?  (Read 1030 times)

Must Stache

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Sell winners or spend cash savings?
« on: April 26, 2017, 06:14:56 AM »
Looking for some advice:

Let's say I have a $30K debt that I need to pay off next month.  I currently have $30K sitting in a savings account earning 1%.  This is my only cash savings outside of my investment portfolio.  I also have a taxable investment account in which I invested $500K, but it is now worth $530K because of the recent bull market.  Am I better off to sell $30K from my investment portfolio to capture those gains or just let it keep growing and instead use the cash I have sitting in the savings account to pay off the debt? 

It seems like maybe this is a "timing the market" question, but I would appreciate any thoughts! 

MasterStache

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Re: Sell winners or spend cash savings?
« Reply #1 on: April 26, 2017, 06:26:46 AM »
Not sure why you would pull money out of investments to pay off a debt when you have the money in savings.

Must Stache

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Re: Sell winners or spend cash savings?
« Reply #2 on: April 26, 2017, 08:30:15 AM »
Not sure why you would pull money out of investments to pay off a debt when you have the money in savings.

My thinking was to capture the $30K in gains, while preserving my cash savings for future opportunities.  I'm a little nervous about depleting my cash reserves entirely.   

MasterStache

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Re: Sell winners or spend cash savings?
« Reply #3 on: April 26, 2017, 08:38:59 AM »
Not sure why you would pull money out of investments to pay off a debt when you have the money in savings.

My thinking was to capture the $30K in gains, while preserving my cash savings for future opportunities.  I'm a little nervous about depleting my cash reserves entirely.

Sounds like market timing. 

Must Stache

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Re: Sell winners or spend cash savings?
« Reply #4 on: April 26, 2017, 08:48:10 AM »
Not sure why you would pull money out of investments to pay off a debt when you have the money in savings.

My thinking was to capture the $30K in gains, while preserving my cash savings for future opportunities.  I'm a little nervous about depleting my cash reserves entirely.

Good suggestion for taking some from different places.  Thank you.

As for the taxes, I have to look at the specific holdings, but most have been more than 1 year.

Must Stache

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Re: Sell winners or spend cash savings?
« Reply #5 on: April 26, 2017, 08:49:44 AM »
Not sure why you would pull money out of investments to pay off a debt when you have the money in savings.

My thinking was to capture the $30K in gains, while preserving my cash savings for future opportunities.  I'm a little nervous about depleting my cash reserves entirely.

Good suggestion for taking some from different places.  Thank you.

As for the taxes, I have to look at the specific holdings, but most have been more than 1 year.

Whoops, I meant to respond to L.A.S. here.