Leave funds invested and watch it drop or take out and put into bank…??

diystarter7

Linton said:

diystarter7 said:

@Linton

point 4. The 50k could have been invested/gambled the day before, week, year or years before my point is clear. You go to bed with xxxxx and wake up in the morning needing the  xxxxxx but when you go to access it, there may have been a market implosion as they do happen and you are left with x. Unlike a bank, most likely all of your money and bit more will be there.

point 5.  No but it is a safer gamble plus income.

You arrange your finances so any money you could reasonably need in the short term is covered by cash savings. Dont invest until you have say 6 months living expenses in cash if you are working or substantially more if you are retired and dependent on your savings/investments.

My apologies again as my fault again for not being clearl.
What you have posted is what I do

I was just saying as it does happen and it hurts when you go to bed thinking you have ???-ish but then wake up next morning and it has halved.

Tesco was considered a very safe stock and someone I know had about 90% of their holdings in Tesco - not sure how much it fell but it fell massively because of the way they calculated profits etc. The chap lost his bottle topped up a couple of times and decided to cut his losses but then the shares went up.


We have what is too me substantial cash ie you could buy a brand new BMW etc mid-range but we wont fix for even a year
as I've always been like that and was hoping to move to bTL property. However, I expect the property to go lower but then it may not due to hyperinflation but more importantly I have a few other things to sort out.

We are both early retired but my wife is working PT now for various reasons and I may do a day here and there to get out of the house but we are a few years away from our state pensions and are taking income from one of the two pensions each but instant access cash makes us both feel safer.

I see where you are coming from but it is what it is.

I hope you make loads of money, good luck.

[Deleted User]

diystarter7 said:

Adyinvestment said:

diystarter7 said:

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit.

The problem with this is that in today's high inflation, instead of waking up with 50k and a bit, you are actually waking up with 50k and a bit less.

Rinse and repeat every night for a few years and all of a sudden you are waking up with the comparative purchasing power of 25k.

Thanks

I worry

Hi,

listen HERE.

masonic

diystarter7 said:

Tesco was considered a very safe stock and someone I know had about 90% of their holdings in Tesco - not sure how much it fell but it fell massively because of the way they calculated profits etc. The chap lost his bottle topped up a couple of times and decided to cut his losses but then the shares went up.

This is a great example of how not to invest. Single company investing is very high risk investing, no matter what the company. You'll find very few people here who would regard investing 90% of your holdings in one share as remotely safe.

agent69

Adyinvestment said:

diystarter7 said:

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit.

The problem with this is that in today's high inflation, instead of waking up with 50k and a bit, you are actually waking up with 50k and a bit less.

Rinse and repeat every night for a few years and all of a sudden you are waking up with the comparative purchasing power of 25k.

And if your money is in the stock market you wake up with £50k and a lot less

Adyinvestment

agent69 said:

And if your money is in the stock market you wake up with £50k and a lot less

Possibly, and there is the dilemma...

bostonerimus

If you are young then now is the time to rebalance and keep investing at "fire sale" prices. If you are coming up to retirement or are already retired you can be drawing on your cash and fixed income investments so you don't have to sell equities into a falling market.

diystarter7

masonic said:

diystarter7 said:

Tesco was considered a very safe stock and someone I know had about 90% of their holdings in Tesco - not sure how much it fell but it fell massively because of the way they calculated profits etc. The chap lost his bottle topped up a couple of times and decided to cut his losses but then the shares went up.

This is a great example of how not to invest. Single company investing is very high risk investing, no matter what the company. You'll find very few people here who would regard investing 90% of your holdings in one share as remotely safe.

True but people do.
About 8 years ago 99% of my gamble was in ITV. Over a period of about 18 months I played for small profits (hundreds) often selling within days but a few times I got cold sweats when the shares went down and down I topped up. Not once did I make a loss in the transactions.  Look at them today, worth 25% of their peak

grumiofoundation

diystarter7 said:

masonic said:

diystarter7 said:

Tesco was considered a very safe stock and someone I know had about 90% of their holdings in Tesco - not sure how much it fell but it fell massively because of the way they calculated profits etc. The chap lost his bottle topped up a couple of times and decided to cut his losses but then the shares went up.

This is a great example of how not to invest. Single company investing is very high risk investing, no matter what the company. You'll find very few people here who would regard investing 90% of your holdings in one share as remotely safe.

True but people do.
About 8 years ago 99% of my gamble was in ITV. Over a period of about 18 months I played for small profits (hundreds) often selling within days but a few times I got cold sweats when the shares went down and down I topped up. Not once did I make a loss in the transactions.  Look at them today, worth 25% of their peak

Yes they may but the point is the two should not be directly equated, a distinction needs to be drawn between someone investing in a very high risk manner (and as illustrated often above their risk tolerance) and more diversified stocks and shares investments.

diystarter7

grumiofoundation said:

diystarter7 said:

masonic said:

diystarter7 said:

Tesco was considered a very safe stock and someone I know had about 90% of their holdings in Tesco - not sure how much it fell but it fell massively because of the way they calculated profits etc. The chap lost his bottle topped up a couple of times and decided to cut his losses but then the shares went up.

This is a great example of how not to invest. Single company investing is very high risk investing, no matter what the company. You'll find very few people here who would regard investing 90% of your holdings in one share as remotely safe.

True but people do.
About 8 years ago 99% of my gamble was in ITV. Over a period of about 18 months I played for small profits (hundreds) often selling within days but a few times I got cold sweats when the shares went down and down I topped up. Not once did I make a loss in the transactions.  Look at them today, worth 25% of their peak

Yes they may but the point is the two should not be directly equated, a distinction needs to be drawn between someone investing in a very high risk manner (and as illustrated often above their risk tolerance) and more diversified stocks and shares investments.

A fair point.

fudgecat

If you cash in equities you make a real concrete loss, rather than one on paper. Most of us can't time the market, so continue with your long term strategy.