Author Topic: My fund NAV has increased...sell or hold?  (Read 2176 times)

hobbes1

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My fund NAV has increased...sell or hold?
« on: August 05, 2016, 10:13:58 AM »
One of my 403b funds (FNMIX) has risen enough in NAV price that if I sold it now, I'd lock in gains equivalent to about 2.5 years of the monthly dividend. So, in theory, I could sell the fund let the money sit for awhile and take a chance that the NAV will decline over the next, say 1 year. Then, buy back into the fund....repeat as necessary.

What would you do and why?

(note: I am comfortable with owning this fund, comfortable with the part of my overall strategy that that this fund inhabits and am not asking whether or not it's a good fund to own)

Thanks

2Birds1Stone

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Re: My fund NAV has increased...sell or hold?
« Reply #1 on: August 05, 2016, 11:40:31 AM »
One of my 403b funds (FNMIX) has risen enough in NAV price that if I sold it now, I'd lock in gains equivalent to about 2.5 years of the monthly dividend. So, in theory, I could sell the fund let the money sit for awhile and take a chance that the NAV will decline over the next, say 1 year. Then, buy back into the fund....repeat as necessary.

What would you do and why?

(note: I am comfortable with owning this fund, comfortable with the part of my overall strategy that that this fund inhabits and am not asking whether or not it's a good fund to own)

Thanks

What the actual F, if I didn't know better I would assume you are a troll.

How do you know the fund's NAV won't go up another 20% before a decline? What if it drops, you buy back in, then it drops another 20%.......start reading around here before asking any more questions lol.

hobbes1

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Re: My fund NAV has increased...sell or hold?
« Reply #2 on: August 08, 2016, 08:09:38 AM »
One of my 403b funds (FNMIX) has risen enough in NAV price that if I sold it now, I'd lock in gains equivalent to about 2.5 years of the monthly dividend. So, in theory, I could sell the fund let the money sit for awhile and take a chance that the NAV will decline over the next, say 1 year. Then, buy back into the fund....repeat as necessary.

What would you do and why?

(note: I am comfortable with owning this fund, comfortable with the part of my overall strategy that that this fund inhabits and am not asking whether or not it's a good fund to own)

Thanks

What the actual F, if I didn't know better I would assume you are a troll.

How do you know the fund's NAV won't go up another 20% before a decline? What if it drops, you buy back in, then it drops another 20%.......start reading around here before asking any more questions lol.

Ok. thanks for your reply. I am not a troll, nor new here, nor new to investing, nor new to being frugal and saving.
Making ASSumptions, makes you look like an ASS.

If you don't like my question, why answer? Just move along.

To answer your questions: there is no way to know if the market would go up or down from here. My question is simply, would other investors share whether they would lock in 2.5 years of dividends now, given than what goes up will eventually go down, or would investors pass on the immediate gain and stay the course? It's a pretty simple question.

2Birds1Stone

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Re: My fund NAV has increased...sell or hold?
« Reply #3 on: August 08, 2016, 08:37:00 AM »
Ok. thanks for your reply. I am not a troll, nor new here, nor new to investing, nor new to being frugal and saving.
Making ASSumptions, makes you look like an ASS.

If you don't like my question, why answer? Just move along.

To answer your questions: there is no way to know if the market would go up or down from here. My question is simply, would other investors share whether they would lock in 2.5 years of dividends now, given than what goes up will eventually go down, or would investors pass on the immediate gain and stay the course? It's a pretty simple question.

This is speculation, not investment.

Kaspian

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Re: My fund NAV has increased...sell or hold?
« Reply #4 on: August 08, 2016, 09:21:20 AM »
To answer your questions: there is no way to know if the market would go up or down from here. My question is simply, would other investors share whether they would lock in 2.5 years of dividends now, given than what goes up will eventually go down, or would investors pass on the immediate gain and stay the course? It's a pretty simple question.

Whatever you decide to do, after this you need to create a written plan and stick to it.  Making investment decisions based on whims, spectulation (newly invented mental thresholds), or advice from strangers on the Interwebs forumses is a very bad plan.

seattlecyclone

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Re: My fund NAV has increased...sell or hold?
« Reply #5 on: August 08, 2016, 10:23:50 AM »
To answer your questions: there is no way to know if the market would go up or down from here. My question is simply, would other investors share whether they would lock in 2.5 years of dividends now, given than what goes up will eventually go down, or would investors pass on the immediate gain and stay the course? It's a pretty simple question.

This is a faulty assumption with investing. Sure, the market goes up and down, but it's quite possible (if not likely) that the next downturn will happen after so many more increases that the low point is higher than the current price. Think about why you invested in that fund in the first place. It's likely because you thought that the fund would increase in value over time. If something has changed to make you believe that the fund will not increase in value over time, then you should of course sell it. However I haven't seen anything that would make me doubt that the market will stop going up over the long run, so I'm not selling.

hobbes1

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Re: My fund NAV has increased...sell or hold?
« Reply #6 on: August 15, 2016, 11:41:01 AM »
I hear you. I never said I was selling the fund. What I said was, I could IN THEORY, sell the fund, lock in the gains worth 2.5 years of dividends and buy back into the fund at a later day. I asked WHAT WOULD YOU DO and WHY?

FWIW, we have a plan, we are following the plan, the investments are on autopilot and have been for quite some time (eg: regular deposits and reinvested dividend/interest payments). We watch the investments and monitor the income from them, regularly. The posters who have responded seem to want to save me from myself (or, us from ourselves :) but this isn't necessary.  We are with in two years of being able to FIRE and maybe sooner depending on our ability to increase savings even more than we are doing, currently.


seattlecyclone

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Re: My fund NAV has increased...sell or hold?
« Reply #7 on: August 15, 2016, 11:57:18 AM »
Was that a reply to me? I already said I personally wouldn't sell, because there's no guarantee that the price will ever go lower than it is today.

Scandium

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Re: My fund NAV has increased...sell or hold?
« Reply #8 on: August 15, 2016, 12:14:24 PM »
One of my 403b funds (FNMIX) has risen enough in NAV price that if I sold it now, I'd lock in gains equivalent to about 2.5 years of the monthly dividend. So, in theory, I could sell the fund let the money sit for awhile and take a chance that the NAV will decline over the next, say 1 year. Then, buy back into the fund....repeat as necessary.

What would you do and why?

(note: I am comfortable with owning this fund, comfortable with the part of my overall strategy that that this fund inhabits and am not asking whether or not it's a good fund to own)

Thanks

What the actual F, if I didn't know better I would assume you are a troll.

How do you know the fund's NAV won't go up another 20% before a decline? What if it drops, you buy back in, then it drops another 20%.......start reading around here before asking any more questions lol.

Ok. thanks for your reply. I am not a troll, nor new here, nor new to investing, nor new to being frugal and saving.
Making ASSumptions, makes you look like an ASS.

If you don't like my question, why answer? Just move along.

Remember kids, there are no stupid questions. Only stupid people.