It's time to start digging up those Squirrelled Nuts!!!!

barnstar2077

NedS said:

Sea_Shell said:

We need some cash for a home improvement project.   Not loads, probably about £5k (just awaiting quotes)

We've decided not to use our cash float, but to make withdrawal from our S&S ISAs, we think?  

Now's the fun part....which fund??


The one that's up £17k (against what we've paid in over the years*) but is down 22.5% from its high point. (Rathbones)

or

The one that's down £2k (against payments in), but that's only down 8.7% from its high point. (HSBC)


* What we paid in includes £19k of profit that was taken from one and invested in the other.



We can't decide between taking (old) profit, or crystalising a larger (current) loss.

WWYD and why?

I would not look backwards - what is past is done, and is not relevant. So I would not worry about crystalising any losses. I would wholly focus on looking forward and making your best judgement as to which fund(s) you think will perform best (or least worst) from here. If you don't have a view on that, just re-balance to your chosen weightings.

It isn't past, so it is still relevant.  They haven't sold one of the funds yet, so there is still time to decide if using cash instead would be better.  I would say it depends on how much of a cash buffer there is.  As I said before, isn't this the exact scenario that cash buffer is supposed to be for?  When would you use it otherwise?

Sea_Shell

For something unplanned, an actual emergency?

frugal90

leave the home improvements until the bear market has done it's stuff

we always take cash from our dividend paying investment trusts when stocks are high then let them re-invest when they are low

if your cash rescerve is too low then maybe wait a bit??

Sea_Shell

frugal90 said:

leave the home improvements until the bear market has done it's stuff

we always take cash from our dividend paying investment trusts when stocks are high then let them re-invest when they are low

if your cash rescerve is too low then maybe wait a bit??

🤣🤣🤣
We've been "putting it off" for 20 years, but now the cistern is leaking.

It's the kick up the bum we needed to finally update it, rather than fix it. 


We can't win, we get told off for not spending and then for spending at the wrong time 🙄😉🤣🤦🏼‍♀️

AlwaysLearnin

Sea_Shell said:

frugal90 said:

leave the home improvements until the bear market has done it's stuff

we always take cash from our dividend paying investment trusts when stocks are high then let them re-invest when they are low

if your cash rescerve is too low then maybe wait a bit??

🤣🤣🤣
We've been "putting it off" for 20 years, but now the cistern is leaking.

It's the kick up the bum we needed to finally update it, rather than fix it. 


We can't win, we get told off for not spending and then for spending at the wrong time 🙄😉🤣🤦🏼‍♀️

You're in a very vulnerable position when you get a kick up the bum from your toilet...!

westv

Drawdown from investments is so 2022. Annuities are the future now, daddio.   

Dh6

I’d be using it as an opportunity to rebalance. If you don’t want/need to rebalance, take it from cash.

DH

Audaxer

Sea_Shell said:

There's a third way.

Split the withdrawal proportionally to current holding?

Yes, I think the best way is to withdraw from your portfolio as a whole, so after the withdrawal you end up with your original/preferred weightings of equity, bonds and cash, which is effectively rebalancing at the time you are withdrawing the £5,000. 

Kim1965

A leaking cistern wont cost 5k to mend. Im with the chap who says do mot crystallise a loss 

Sea_Shell

Kim1965 said:

A leaking cistern wont cost 5k to mend. Im with the chap who says do mot crystallise a loss 

Well yes, I'm quite aware of that.   But we're talking a whole cloakroom refit.   It's a coloured suite (still) that's so very 1990's

In the bigger picture, if we all put off spending on stuff that needs doing, we don't help the economy stay afloat either.

If the quotes come in higher than we think (we've always DIY'd this stuff in the past), then we'll have a rethink.


We're also getting some fencing replaced, and that's costing £1200.   Which will come out of cash.