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  • FIRST POST
    • Murmansk
    • By Murmansk 8th Jan 18, 7:14 PM
    • 59Posts
    • 16Thanks
    Murmansk
    Vanguard Lifestrategy - should I cash in my "gain"?
    • #1
    • 8th Jan 18, 7:14 PM
    Vanguard Lifestrategy - should I cash in my "gain"? 8th Jan 18 at 7:14 PM
    I'm relatively new to investing but I've done a lot of background reading and I have a question.
    I have had enough money in Vanguard Lifestrategy since October to have seen it go up in value by about £4,000.
    It's been suggested to me that I should withdraw £4,000 in cash in case the market drops so that at least I'll not have lost that gain.
    I'm aware that the advice generally is to keep your cash in for years on end, not keep looking at the value of it, benefit from compound interest, etc but I can see the logic of this suggestion and I wonder what people think?
Page 2
    • Alexland
    • By Alexland 9th Jan 18, 2:02 PM
    • 1,160 Posts
    • 784 Thanks
    Alexland
    You say you are "committed to long term investing" and yet after only eleven weeks or so you are thinking of cashing in your gain. Can you see the obvious problem here?
    Originally posted by ColdIron
    I was once at a casino for a stag do and won big within the first 15 mins. I was sober enough to realise there was no point continuing so it kinda ruined the night for me.

    Alex
    • TBC15
    • By TBC15 9th Jan 18, 2:26 PM
    • 319 Posts
    • 123 Thanks
    TBC15
    Stay invested, keep with the program.
    • TBC15
    • By TBC15 9th Jan 18, 2:29 PM
    • 319 Posts
    • 123 Thanks
    TBC15
    I was once at a casino for a stag do and won big within the first 15 mins. I was sober enough to realise there was no point continuing so it kinda ruined the night for me.

    Alex
    Originally posted by Alexland
    How did your future wife take it?
    • Alexland
    • By Alexland 9th Jan 18, 4:30 PM
    • 1,160 Posts
    • 784 Thanks
    Alexland
    It wasn't my stag do - that was an experience I'd rather not talk about...
    • PuzzledDave
    • By PuzzledDave 9th Jan 18, 6:10 PM
    • 145 Posts
    • 687 Thanks
    PuzzledDave
    I'm aware that the advice generally is to keep your cash in for years on end, not keep looking at the value of it, benefit from compound interest, etc but I can see the logic of this suggestion and I wonder what people think?
    Originally posted by Murmansk
    Couple of thoughts:

    "The market has had some crazy gains, probably best to cash a fair chunk out now whilst the going is good".

    -- Me in 2013, am very glad I didn't listen to myself !


    "The market is as high as it is going to go, best to sell my home now and rent - then get back in after the crash".

    -- House Price Crash folks in ~2002.... they are still waiting and will never make back their losses.
    • Alexland
    • By Alexland 9th Jan 18, 7:23 PM
    • 1,160 Posts
    • 784 Thanks
    Alexland
    But on the other hand Robert Schiller has done an excellent job, over many decades, of identifying rational market values and demonstrating the mismatch between escalating share prices and future earnings results. Jack Bogle has so far always been right about reversion to the mean - how high P/Es eventually drop back to the long term average.

    I haven't seen the House Price Crash folks win their Nobel Prize or been proved consistently correct in all market conditions yet... so let's try and learn from experts not 'experts'.
    Last edited by Alexland; 09-01-2018 at 8:02 PM.
    • Ray Singh-Blue
    • By Ray Singh-Blue 9th Jan 18, 8:37 PM
    • 361 Posts
    • 472 Thanks
    Ray Singh-Blue
    Assuming you pay into a workplace pension you probably dont even look at this year to year and whether it goes up or down you don't cash it out everytime the market drops. So why would you do anything different with your s and s isa
    Originally posted by Fatbritabroad
    Because except in a few special situations, you can't spend your pension until you old enough. Whereas you could blow your ISA on a Lambo / Audi / Fish Dinner* tomorrow.

    *adjust according to number of zeros
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