Shares when to sell?

samsysoo

We've got about 18K invested in various funds- many linked to FTSE 100 as far as I can tell. All IFA invested. Only one small group is making any money- all have devalued since investment about 5 yrs ago.
DILEMMA: We have a large 160K interest only mortgage loan- split into approx 80K in two parts. Low interest around 2.5%.

We could raise approx 40K by selling all of our investments inc premium bonds.
My idea is to turn one of the mortgage loans into a repayment after cashing in assets and reducing it to half i.e.: 4oK. Then reducing the term and trying to get rid of the 40K left in 5 years.

Q: Would anyone else do that?
Q2: Would you cash in now or wait till Italy has bombed and hope the FTSe rebounds somehow?
I have no idea what to think......:

srcandas

samsysoo wrote: »

........
I have no idea what to think......:

Sam no easy answer but one route, paying mortgage has a degree of certainty to it; the other route has an element of risk, you might lose you might win.

So the question has to be: if the risk went badly wrong, the Euro explodes in dramatic fashion for example and your investments lose half their value, what impact would that have on your life?

If not a lot then enjoy the gamble. If it would be painful go down the safe route. And if it isn't clear cut then do half and half

While I love the thrill of shares I only put money in I can afford to lose. However as my mortgaqe disappears I also get a different form of enjoyment.

Well doubt I've helped much but others will be along I'm sure. Good luck :beer:

samsysoo

It's useful to see it summarised like this. I guess it's our only savings and we are [paying interest on a loan that we aren't reducing (we're 50). That feels worrying.I also have never had any joy out of shares so far. I do feel EU is going belly up as the global economies shift their focus onto Asia etc. So gut instinct is to cut losses and run. Would you sell now or let spain level off in it's impact? Ftse not great at mo? what do you think?
PS loved the balanced and sharp summary you gave me. Thanks very much.:T

srcandas

samsysoo wrote: »

PS loved the balanced and sharp summary you gave me. Thanks very much.:T

Your very welcome. If I can return just a slither of the help I have received from the folk here then that makes me very happy.

I'm coming up to 60 and the mortgage is now down to less than £25000 and as soon as I take a pension lump it will be gone.

Before like many, and certainly at 50, I used credit cards, overdrafts, and/or bank loans and generally didn't worry too much. After all I'm sort of self-employed and can slowly melt into retirement and still lots of time left. But it does suddenly creep up on you :eek:

The risk of being unemployed and running out of time is quite scary

I guess as you get older piece of mind and lack of stress are worth more than before. Now I have an end game in place (I'm not rich by the way but I can live;)) I can relax and spend my time pushing my scuba diving to the extreme even though this lovely pastime I acquired three years ago (thanks step-daughter ) is not cheap.

So I'd lean towards getting clear of all debt. As for the shares they are worth what they are worth now. They are not cheap and not expensive. Just make a decision and don't look back. If you sell and they go up a little don't even give it a thought because you'd only see that profit if you sold and selling is a much harder decision than buying.

Sorry waffling here Sam. Wishing you all the best :beer: