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Cash in stocks now

Posted on 12/28/12 at 10:52 am
Posted by Sal Minio
17th Street Canal
Member since Sep 2006
4182 posts
Posted on 12/28/12 at 10:52 am
If I cash in all my stocks today due to F.C. uncertainty, what are the + and - of doing this?
Posted by LSURussian
Member since Feb 2005
126966 posts
Posted on 12/28/12 at 10:54 am to
quote:

If I cash in all my stocks today due to F.C. uncertainty, what are the + and - of doing this?


If your stocks go up after you sell, you lost making more money.

If they go down, you saved yourself from some losses.
Posted by iluvredboxx
Lafayette
Member since Mar 2012
902 posts
Posted on 12/28/12 at 11:15 am to
One positive for cashing in now is you could potentially avoid higher taxation on capital gains. Also, if you have dividend stocks, they will be taxed at a higher rate at well
Posted by Layabout
Baton Rouge
Member since Jul 2011
11082 posts
Posted on 12/28/12 at 1:05 pm to
If you were planning to sell them anyway it probably makes sense to do it this week rather than next. Otherwise don't disrupt your portfolio to save a few bucks on taxes.
Posted by NC_Tigah
Carolinas
Member since Sep 2003
124189 posts
Posted on 12/28/12 at 2:22 pm to
quote:

If I cash in all my stocks today due to F.C. uncertainty, what are the + and - of doing this?
Obviously depends on tax bracket.

Generally:

Losses:
Makes sense to preserve losses until 2013 then sell

Gains:
For LTCG/STCG's your FP entails selling in the short term, sell now.
For securities you were planning to hold longer term, hold them.
(if you sell then buy back, you accrue further gains based on holdings less 2012 tax exposure. i.e., you profit more simply maintaining the investment despite a less favorable 2013 tax environment)
Posted by tigeryat
God's Country
Member since Oct 2005
2917 posts
Posted on 12/28/12 at 6:38 pm to
I'm still in.

I backed off my asset allocation to 50% equity exposure, just in case. This stock market makes no sense to me either. It's just as likely to run up as it is to crater.

If I were close to retirement, I would reduce my equity exposure down to 25% and try to preserve capital for the next few years. Too many idiots in charge of this roller coaster.
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