Realized profits

20122013

As market can rise and fall.. If the funds (S&S ISA) you have invested has reached your target value, even if you do not need the money and there is no CGT or transaction fees etc, do you sell and take the gain and leave the capital or leave it alone ? or sell  or switch to invest somewhere else etc to rebalance / spend or whatever you wish as there will be no CGT?  Be great to hear others' views. 

ColdIron

What is the 'target value' of cash in your savings accounts? What do you do with your cash once your 'target value' has been realised?

eskbanker

It's far from a given that investors will have a target value in mind for any investment, but yes, anyone choosing to operate in that manner would clearly need the rest of a joined-up plan as to what they'd do on reaching it, which would lead back to what they hope to achieve by investing in the first place....

kempiejon

Nobody ever went broke banking a profit from their investments.
What do you do @20122013 ?

Occasionally I sell, especially an undervalued share that becomes overvalued. I usually keep shares bought for income.
Most of my portfolio is held for ongoing long term growth so selling frustrates that objective.
Selling is handy for tax mitigation too, capital gains allowance is use it or lose it.

20122013

eskbanker said:

It's far from a given that investors will have a target value in mind for any investment, but yes, anyone choosing to operate in that manner would clearly need the rest of a joined-up plan as to what they'd do on reaching it, which would lead back to what they hope to achieve by investing in the first place....

Hello eskbanker, my goal is not to be too greedy as it may end up with not much.  

My target value is to so with my annual retirement spend, so my thinking is once it has reached the amount keep it in a PB or gilts or savings account (as this is surplus money )  

20122013

kempiejon said:

Nobody ever went broke banking a profit from their investments.
What do you do @20122013 ?

Occasionally I sell, especially an undervalued share that becomes overvalued. I usually keep shares bought for income.
Most of my portfolio is held for ongoing long term growth so selling frustrates that objective.
Selling is handy for tax mitigation too, capital gains allowance is use it or lose it.

hello kempiejon. 

As there any reason why you asked 'What do you do' ?

kempiejon

20122013 said:

As market can rise and fall.. If the funds (S&S ISA) you have invested has reached your target value, even if you do not need the money and there is no CGT or transaction fees etc, do you sell and take the gain and leave the capital or leave it alone ? or sell  or switch to invest somewhere else etc to rebalance / spend or whatever you wish as there will be no CGT?  Be great to hear others' views. 

Be great to hear yours.

eskbanker

20122013 said:

eskbanker said:

It's far from a given that investors will have a target value in mind for any investment, but yes, anyone choosing to operate in that manner would clearly need the rest of a joined-up plan as to what they'd do on reaching it, which would lead back to what they hope to achieve by investing in the first place....

Hello eskbanker, my goal is not to be too greedy as it may end up with not much.  

My target value is to so with my annual retirement spend, so my thinking is once it has reached the amount keep it in a PB or gilts or savings account (as this is surplus money )  

In which case, you've answered your own question - if your investment goal is to build a pot of a defined size, following which you'd retreat to cash, then go ahead, but obviously others will have different goals in mind and so will have different strategies for how to achieve them, so 'realising profits' within the context of an ongoing investment journey will be an entirely different scenario from reaching the end of that journey.

20122013

kempiejon said:

20122013 said:

As market can rise and fall.. If the funds (S&S ISA) you have invested has reached your target value, even if you do not need the money and there is no CGT or transaction fees etc, do you sell and take the gain and leave the capital or leave it alone ? or sell  or switch to invest somewhere else etc to rebalance / spend or whatever you wish as there will be no CGT?  Be great to hear others' views. 

Be great to hear yours.

I will sell or switch to other funds when I have made the value I need, (as at the moment this is the way I know how, I am sure there are more technical ways to do this.  

Linton

20122013 said:

As market can rise and fall.. If the funds (S&S ISA) you have invested has reached your target value, even if you do not need the money and there is no CGT or transaction fees etc, do you sell and take the gain and leave the capital or leave it alone ? or sell  or switch to invest somewhere else etc to rebalance / spend or whatever you wish as there will be no CGT?  Be great to hear others' views. 

I dont understand your question.  Surely you have a target because you need a particular sum of money to meet some objective in your life. eg buy a house or retire.  Once you have reached your target you do whatever it was you wanted the money for.

You seem to be suggesting that you have arbitrary targets with no wider objectives.  I dont see why you would do this.

kempiejon

I will sell or switch to other funds when I have made the value I need,

Ah cool,. So am I right, when you have made the value you'll stop investing for growth/profit?
Would it be all Cash/nrCash holding or annuity, perhaps something else, a big purchase perhaps, what's next?

I have a target income to harvest from my investments so I look for instruments that will achieve that long term and generally hold them rather than trading or ultimately stopping investing. I don't have a predetermined value goal with a plan to then cash out.