I need to liquidate all my stocks (worth about $25k as of Friday closing) to put towards my home down payment in December. The Syria situation concerns me. I just want to take my gains and sell them all off during the next couple of days. Is it a good idea? Is there a better idea the MTB recommends?
Ace Midnight LSU Fan Between sanity and madness Member since Dec 2006 38081 posts Online
re: Buying house in December; have $25K in stocks - should I sell now?(Posted by Ace Midnight on 9/8/13 at 4:09 pm to stendulkar)
quote: I need to liquidate all my stocks (worth about $25k as of Friday closing) to put towards my home down payment in December.
Make sure you do your planning on long-term capital gains (but they were going to be this tax year anyway). I would maybe roll them into CDs (mainly to keep you from spending them), but there's nothing wrong with your plan - I predict the risk for reduction in value between now and early December is about equal to the potential for gain.
foshizzle LSU Fan Washington DC metro Member since Mar 2008 31747 posts
re: Buying house in December; have $25K in stocks - should I sell now?(Posted by foshizzle on 9/8/13 at 4:37 pm to stendulkar)
What should really matter here isn't Syria but that you need a certain amount in December. The market can rise or fall for any reason at any time, if that troubles you then go ahead and cash out now. OTOH, if you can afford to leave it in then by all means do so, realizing that by doing that you meet your goal of having the down payment but may miss out on gains if they happen.
But nobody knows what will happen between now and then.
stendulkar LSU Fan Member since Aug 2012 541 posts
re: Buying house in December; have $25K in stocks - should I sell now?(Posted by stendulkar on 9/8/13 at 5:26 pm to foshizzle)
I will be paying long term capital gains on most of them. There are only a couple that I bought less than a year ago.
I do understand the potential for lost gains before the end of the year, but at the same time, I don't have the stomach to take any losses between now and the home purchase. It could put a serious dent in my effort to get as close as possible to 20% down.
I am still relatively young (early 30s) and will dive back into the market next year and start over.