The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Must Stache on April 26, 2017, 06:14:56 AM
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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!
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Not sure why you would pull money out of investments to pay off a debt when you have the money in savings.
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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.
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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.
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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.
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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.