# Anyone liquidating their investments? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [September 18, 2008, 2:42pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146 "2008-09-18T14:42:35Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [September 18, 2008, 9:44pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/21 "2008-09-18T21:44:19Z")
Not going to be liquidating, but I’ve been planning for a couple of weeks to move about 10% of my stocks into bond funds (as part of my long-term asset allocation plan, not due to any market speculation). It feels foolish to do it _right after_ a significant drop, but I think I should probably follow through with it, if only for the personal precedent it will set for me. ---
**Author:** ![Cyberhwk](https://avatars.discourse-cdn.com/v4/letter/c/7993a0/32.png) [@Cyberhwk](https://boards.straightdope.com/u/Cyberhwk)\ **Post date:** [September 19, 2008, 4:14am UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/22 "2008-09-19T04:14:46Z")
> [@Cervaise](#): > > Investments, no. > > However, [my bank is in serious trouble](http://seattletimes.nwsource.com/html/businesstechnology/2008187176_wamu180.html) and I’m looking at closing my account and moving elsewhere (a credit union, probably). I know, I know, the problems with the bank are on the credit-and-lending side, not the savings-and-deposits side. However, I’m concerned that the average citizen won’t realize that, I already know someone who’s pulled all their money out of WaMu. > [@ralph124c](#): > > I am of the opinion that intra-state credit unions are safer than banks. My CU is conservative, and has never gotten involved with exotic financial 'instruments". Shit…my Credit Union has only even offered DEBIT CARDS for 2-3 years now. ---
**Author:** ![ParentalAdvisory](https://avatars.discourse-cdn.com/v4/letter/p/53a042/32.png) [@ParentalAdvisory](https://boards.straightdope.com/u/ParentalAdvisory)\ **Post date:** [September 19, 2008, 5:10am UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/23 "2008-09-19T05:10:36Z")
I liquidated enough to tax loss harvest $3k off my income for this year, but I’m still invested for what I sold (bought another index fund with those proceeds, so I’m still in the game). Bought additional index shares as well, I have a long investment horizon. ---
**Author:** ![Maeglin](https://avatars.discourse-cdn.com/v4/letter/m/8baadc/32.png) [@Maeglin](https://boards.straightdope.com/u/Maeglin)\ **Post date:** [September 19, 2008, 2:24pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/24 "2008-09-19T14:24:26Z")
> [@Athena](#): > > Nah, he’s older than me. I’m 38, so maybe 35 years a bit long, it’d be nice to retire by 65 or so. But still, he’s looking at 15-20 years max. Hopefully less. > > Personally, I agree with most of the posters here - selling now is kinda dumb. But like I said, he’s skittish, and he doesn’t like watching him $$ go down every day. So different risk levels and all that. I just wanted to get a sanity check that selling was not really the way to go right now. I know it seems kind of obvious, but if he does not like seeing his investments lose value every day, get him to tune out the financial news. The easiest way to stay sane is not to get out at the bottom but to ignore the noise. Encourage him to check his portfolio maybe once per month or once per quarter. He can spare himself the heartache and take a more lomg-term view. ---
**Author:** ![Athena](https://avatars.discourse-cdn.com/v4/letter/a/35a633/32.png) [@Athena](https://boards.straightdope.com/u/Athena)\ **Post date:** [September 19, 2008, 2:47pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/25 "2008-09-19T14:47:42Z")
> [@Maeglin](#): > > I know it seems kind of obvious, but if he does not like seeing his investments lose value every day, get him to tune out the financial news. The easiest way to stay sane is not to get out at the bottom but to ignore the noise. Encourage him to check his portfolio maybe once per month or once per quarter. He can spare himself the heartache and take a more lomg-term view. Heh. I like your ideas in theory but heck if I can get him to do that. I’ve managed to stave off the liquidating for a few months now, but now that he’s done it, he’s got a thousand reasons why it was the right thing to do. Meanwhile, I get to tell him every day how much mine are going up. Ain’t marriage grand? 😃 ---
**Author:** ![glee](https://avatars.discourse-cdn.com/v4/letter/g/b5a626/32.png) [@glee](https://boards.straightdope.com/u/glee)\ **Post date:** [September 19, 2008, 3:03pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/26 "2008-09-19T15:03:45Z")
> [@Athena](#): > > Mr. Athena is of the opinion that it’s a good time to move his investments (pretty much just his retirement SEP) out of the market and into a cash account. I’m not sure I agree with him - he’s pretty much doing the “buy high sell low” stuff that everyone tells you not to do. When stocks are rising, does he sell? What principle is he using? > [@Athena](#): > > On the other hand, things look pretty doom & gloomy. Things like [this article](http://www.usnews.com/usnews/politics/bulletin/bulletin_080918.htm) make me wonder if he’s not right. Overall, he tends to be more skittish than I. I’m thinking I should just sit tight on my retirement funds and everything will sort itself out between now and 35 years from now when I might need the money. > > So what’re you doing? Part of my retirement income is a large investment fund (I’m diversified 🆒 , with two separate pensions and Government Bonds). The fund has dropped 10% in capital value in the last year. ☹ However my investment manager and myself agree that things will be fine in 3-5 years (and the income from the fund is still coming in.) In fact I recently bought some more units, since they were reasonably cheap. ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [September 19, 2008, 5:04pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/27 "2008-09-19T17:04:30Z")
Stocks are cheap right now. Hell, he should be putting _more_ into mutual funds. If you’re 35 years away from retirement you have a high tolerance for risk. Sit tight, things will get better. ---
**Author:** ![Giraffe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giraffe/32/129_2.png) [@Giraffe](https://boards.straightdope.com/u/Giraffe)\ **Post date:** [September 19, 2008, 5:17pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/28 "2008-09-19T17:17:22Z")
> [@featherlou](#): > > Yes, there is a long time to recover still, but you’ll recover better if you park your 401K in a secure, 3% return while all the stocks tank than if you lose 20% and have to recover all that ground to start making money again. All the money I lost after 9/11 was recovered - in about five years. You could argue that that set my retirement funds back by five years. Apart from predicting 9/11, what could you have done differently? Pulled it out immediately after the crash? By the time you know things are tanking, it’s already too late to do anything other than ride it out. Besides, if you keep adding to your 401(k) regularly during the down years, dollar cost averaging means that you’ll end up ahead when the market gets back to its original point, because you bought at a discount for five years. ---
**Author:** ![Manduck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/manduck/32/256_2.png) [@Manduck](https://boards.straightdope.com/u/Manduck)\ **Post date:** [September 19, 2008, 5:54pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/29 "2008-09-19T17:54:01Z")
> [@Manduck](#): > > I sold half of some of my larger positions, but that doesn’t mean in was necessarily the smartest thing to do - it was more so that days like yesterday would be a bit less gut-wrenching. … and it looks like I sold at the bottom. Again:) ---
**Author:** ![gravitycrash](https://avatars.discourse-cdn.com/v4/letter/g/977dab/32.png) [@gravitycrash](https://boards.straightdope.com/u/gravitycrash)\ **Post date:** [September 19, 2008, 5:54pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/30 "2008-09-19T17:54:23Z")
As nearly all of the previous posters have said, stick with it if you are far from retirement. Dollar costs averaging works over the years. I lost my ass during the dot com busts and then again during 9/11 but I decided not to panic. Today, even with the market taking a large dump, I’m still way ahead. I have a pretty good stock broker as well which doesn’t hurt. ---
**Author:** ![mswas](https://avatars.discourse-cdn.com/v4/letter/m/e99b99/32.png) [@mswas](https://boards.straightdope.com/u/mswas)\ **Post date:** [September 19, 2008, 5:58pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/31 "2008-09-19T17:58:43Z")
I had intended to sell off my Google and Apple stock in order to start a business. With the market the way it is, I am not sure that’s a good idea. ---
**Author:** ![elmwood](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/elmwood/32/3060_2.png) [@elmwood](https://boards.straightdope.com/u/elmwood)\ **Post date:** [September 19, 2008, 5:59pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/32 "2008-09-19T17:59:58Z")
Sticking with it for now. I may have to cash out one retirement account after the unemployment checks stop flowing, but otherwise I’m in it for the long haul. ---
**Author:** ![teela\_brown](https://avatars.discourse-cdn.com/v4/letter/t/d9b06d/32.png) [@teela\_brown](https://boards.straightdope.com/u/teela_brown)\ **Post date:** [September 19, 2008, 6:13pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/33 "2008-09-19T18:13:25Z")
> [@Ludovic](#): > > I’m in that same situation: I’m starting to wonder if it’s possible to make money at a bank without charging those BS fees :mad: My ING Direct CD’s and savings have been climbing steadily despite all the financial turmoil. They have no fees I’ve ever had to pay, but on the other hand, they don’t have much in the bricks-and-mortar way of convenience, like their own ATMs or paper checkbooks. Still, just today, they started offering an 18-month CD at 4.5%. I moved a chunk of cash into one of these. My 401(k), on the other hand . . . ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [September 20, 2008, 10:08pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/34 "2008-09-20T22:08:32Z")
I heard a great line today from one of the investor gurus: **You only get hurt on a roller coaster if you jump off.** ---
**Author:** ![Cat\_Whisperer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cat_whisperer/32/4839_2.png) [@Cat\_Whisperer](https://boards.straightdope.com/u/Cat_Whisperer)\ **Post date:** [September 21, 2008, 3:14am UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/35 "2008-09-21T03:14:53Z")
> [@Giraffe](#): > > Apart from predicting 9/11, what could you have done differently? Pulled it out immediately after the crash? By the time you know things are tanking, it’s already too late to do anything other than ride it out.\ I’d do what I am doing - learning about economics, researching, keeping my ears and eyes open, and putting my RRSP (401K to you guys) in much lower risk funds. You can’t predict what is going to happen, but an informed investor can make good, educated guesses, like I did with my RRSPs when I moved them to a safer fund before this last crash. I don’t think things are getting better in the US any time soon; I won’t have US stocks in my portfolio until things are definitely firmed up again. I understand what people are saying about riding things out, but there’s a line between riding things out and throwing good money after bad. My investment money is parked in lower return, low risk funds right now. The volatility is no longer affecting them. From the long-term prospective, I don’t see anything wrong with that, either. I have time for lower return funds to accumulate. I can also move them back to higher risk, higher return funds any time. I used to believe the investment advisor line about riding it out - I don’t anymore. I think a lot of people are going to lose every cent of their investments in the next decade or so. I am trying to not be one of them. The bottom line for everyone is to keep their risk level where they are comfortable with it. ---
**Author:** ![Plan\_B](https://avatars.discourse-cdn.com/v4/letter/p/3ec8ea/32.png) [@Plan\_B](https://boards.straightdope.com/u/Plan_B)\ **Post date:** [September 21, 2008, 3:17am UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/36 "2008-09-21T03:17:02Z")
I’m following Lawrence Kudlow’s advice, which is to buy an index fund of US stocks, hold onto it until you need the money, and then put your energy into things where you are competent. Thank God I followed that advice this past week. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [September 21, 2008, 5:15am UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/37 "2008-09-21T05:15:48Z")
> [@featherlou](#): > > You can’t predict what is going to happen, but an informed investor can make good, educated guesses, like I did with my RRSPs when I moved them to a safer fund before this last crash. I don’t think things are getting better in the US any time soon; I won’t have US stocks in my portfolio until things are definitely firmed up again. I have no numbers to cite, but I believe that often the biggest stock market gains come right after a big drop. So by withdrawing from the market right now, you might miss out on some profits. ---
**Author:** ![ParentalAdvisory](https://avatars.discourse-cdn.com/v4/letter/p/53a042/32.png) [@ParentalAdvisory](https://boards.straightdope.com/u/ParentalAdvisory)\ **Post date:** [September 21, 2008, 12:03pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/38 "2008-09-21T12:03:54Z")
> [@featherlou](#): > > I won’t have US stocks in my portfolio until things are definitely firmed up again. That understandable. The problem is that you cannot, in no way what so ever, predict when things will be firmed up again. And when the time occurs when most “experts” agree that things are firmed up, you will have missed out on the ride up and will have bought high. Would you get excited about a car you want to buy, going up $500 a day, all the while thinking, “wow! that must be a really hot car for it to increase in price like that!”? If so, you will have bought at the wrong time. When things are hot again, it’s too late. ---
**Author:** ![dalej42](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@dalej42](https://boards.straightdope.com/u/dalej42)\ **Post date:** [September 21, 2008, 3:36pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/39 "2008-09-21T15:36:40Z")
> [@Athena](#): > > Mr. Athena is of the opinion that it’s a good time to move his investments (pretty much just his retirement SEP) out of the market and into a cash account. I’m not sure I agree with him - he’s pretty much doing the “buy high sell low” stuff that everyone tells you not to do. > > On the other hand, things look pretty doom & gloomy. Things like [this article](http://www.usnews.com/usnews/politics/bulletin/bulletin_080918.htm) make me wonder if he’s not right. Overall, he tends to be more skittish than I. I’m thinking I should just sit tight on my retirement funds and everything will sort itself out between now and 35 years from now when I might need the money. > > So what’re you doing? One thing you should probably seriously consider is having him make a plan and **stick to it.** Weeks like yesterday will bring out every single doom and gloomer. Yet, the market ended the about where it started out. Make a decision when you want to sell a particular investment if it goes up to a certain price or down to a certain price. With stocks, there are several types of orders that you can place which will trigger automatically. Buy high and sell low and follow the herd are two of the most common mistakes that people can make. A plan might look like this. I’m buying stock xyz at 50 dollars. If it goes down to 30, I"ll sell all of it because I’m not going to catch that falling knife. If It goes up to 80, I"ll sell half of it and lock in the profits which I"ll use to diversify my portfolio. The second half I will now sell if it goes up to 100 or down back to 50. ---
**Author:** ![Jodi](https://avatars.discourse-cdn.com/v4/letter/j/7feea3/32.png) [@Jodi](https://boards.straightdope.com/u/Jodi)\ **Post date:** [September 21, 2008, 3:56pm UTC](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146/40 "2008-09-21T15:56:30Z")
> [@ivylass](#): > > I heard a great line today from one of the investor gurus: > > **You only get hurt on a roller coaster if you jump off.** The other one I heard is “Don’t just do something; stand there!” I’m standing pat. I’m about 25 years away from retiring. [Previous page](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146.md?page=1) [Next page](https://boards.straightdope.com/t/anyone-liquidating-their-investments/464146.md?page=3)