Buying house in December; have $25K in stocks - should I sell now? | TigerDroppings.com

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stendulkar
LSU Fan
Member since Aug 2012
480 posts

Buying house in December; have $25K in stocks - should I sell now?



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?






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Ace Midnight
LSU Fan
Currently asymptomatic
Member since Dec 2006
32347 posts

re: Buying house in December; have $25K in stocks - should I sell now?


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.







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Mr.Perfect
Louisiana
Member since Mar 2013
5244 posts

re: Buying house in December; have $25K in stocks - should I sell now?


I'm with ace.. but I believe its better than 50% the year ends in a tumble.





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30339 posts

re: Buying house in December; have $25K in stocks - should I sell now?


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.






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stendulkar
LSU Fan
Member since Aug 2012
480 posts

re: Buying house in December; have $25K in stocks - should I sell now?


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.






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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41067 posts
 Online 

re: Buying house in December; have $25K in stocks - should I sell now?


The close proximity of the home purchase is enough of a reason.

Unless you would be willing to postpone the purchase, I would have started to look to cash out at the 6 month mark.






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Blakely Bimbo
Alabama Fan
Member since Dec 2010
1113 posts

re: Buying house in December; have $25K in stocks - should I sell now?


quote:

The Syria situation concerns me.


I would be more concerned about what comes out of the Sept. FOMC.






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tiger perry
LSU Fan
Lafayette, LA
Member since Dec 2009
17287 posts

re: Buying house in December; have $25K in stocks - should I sell now?


quote:

The Syria situation concerns me.



I have money in stocks and I'm nervous as well..






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austiger
LSU Fan
Austin
Member since Apr 2012
178 posts

re: Buying house in December; have $25K in stocks - should I sell now?


quote:

I don't have the stomach to take any losses between now and the home purchase.


There's your answer. Sell.

Friend of mine waited and it just gave $AAPL time to dip to $390 on the day he needed to sell. Bad call.

If you want to let some ride, sell half now.






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