Selling my investments and keeping them as cash

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  • Audaxer
    Audaxer Posts: 3,506
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    FDa65rdk wrote: »
    Sorry, for not replying sooner.

    I have a stocks and shares ISA. I don't usually worry about dips in the market but when a number of sources suggest there could be a crash worse than the one in 2008, I start looking at other options.
    If you want to cash in your investments but keep them within an ISA wrapper you could transfer the cash from your S&S ISA to a Cash ISA. That would enable you to get some interest - for example Virgin Money have an Cash ISA at 1.35% - until you are ready to re-invest. Only problem is when there is a dip in the market and you want to reinvest, it may take up to a couple of weeks to transfer the cash back from the Cash ISA to the S&S ISA.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    FDa65rdk wrote: »
    Perhaps but the talk of a major crash seems to be gathering momentum.

    I wasn't concerned by talk about it over the last few years because I didn't think it was round the corner but I do now.

    There are always investors saying equities will fall. But if the majority believed that they would have sold and prices would have already fallen.
    Equally;
    There are always investors saying equities will rise. But if the majority believed that they would have bought and prices would have already risen.
    So prices are always where the average investor thinks they should be :)
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • Apodemus
    Apodemus Posts: 3,384
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    Glen_Clark wrote: »
    So prices are always where the average investor thinks they should be :)

    Not quite! It’s not the opinion of the average investor, but the weighted average, taking account of the volumes held. If the wee guys are heading for the hills and the big guys are still optimistic, the price will barely move (and vice versa, which is why small investors can make good gains by continuing to buy through the crashes :)).
  • Thank you for your responses. They're much appreciated :)
  • The OP would do well to follow the old saying that "time in the market is more valuable than timing the market". The OP is making the classic mistake of trying to time the market. What happens if after the sale the markets keep going up? If they go down then when will the OP get back in? These questions are why you need a sensible asset allocation and a plan to rebalance with the ups and downs of the market.

    I've been through 30 years of market ups and downs and always stayed invested. The money I switched from bonds to equities back in 2008 has now quadrupled, so rather than anticipating the market the OP should implement an asset allocation and a plan to sensibly react to movements in the markets. That might mean taking some profits from risky equities and moving it cash and bonds, but it should be done with an understanding of market statistics and risks and not on a notion and certainly not all at once.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • MK62
    MK62 Posts: 1,442
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    I've been through 30 years of market ups and downs and always stayed invested. The money I switched from bonds to equities back in 2008 has now quadrupled,

    So you timed the market and used your judgement to decide that it was a good time to make the switch....:p:D
  • AnotherJoe
    AnotherJoe Posts: 19,622
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    MK62 wrote: »
    So you timed the market and used your judgement to decide that it was a good time to make the switch....:p:D

    I suspect not, from what he's posted before I would think he rebalanced after the crash, AFAICR he keeps a constant % between the two.
  • DiggerUK
    DiggerUK Posts: 4,992
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    MK62 wrote: »
    So you timed the market and used your judgement to decide that it was a good time to make the switch.......
    Many repeat the old wives tale about not trying to time the market, at the same time they are doing the self same thing with their 'portfolios'

    When a change is made it is a judgement call, and is based on what we believe is a good call looking at the way things are blowing. Anybody not expecting a change at some point from here on is a fool. That means you look at the downsides that could come to pass, and plan the best way to survive.

    Th OP asks that question. They may decide to move some, or all, of their savings elsewhere. Only message I can deliver is if you have anything you won't need for at least five years, preferably ten, then buy some gold. There are other defensive plays, but Digger Mansions has done very nicely thankyou with that plan Stan..._
  • Prism
    Prism Posts: 3,794
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    DiggerUK wrote: »
    Anybody not expecting a change at some point from here on is a fool. That means you look at the downsides that could come to pass, and plan the best way to survive.

    I guess many people do understand that a change is coming at some point but the question is should they take any active action about it. A lot of peoples investments will be in some company pension scheme or other that they pretty much forget about it rain or shine. They will do absolutely nothing about a downturn or crash - it simply won't enter their minds.

    Then you have those whole will know about it and do absolutely nothing in the knowledge that little they do will make a difference by the time they realise. (thats what I have done during the last two major crashes).

    You will get the odd lucky one that predicts it and happens to be right (sounds like you were last time round)

    And then the others that sell too late and buy again too late as well. They will do the worse most likely.
  • DiggerUK
    DiggerUK Posts: 4,992
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    Prism wrote: »
    .....You will get the odd lucky one that predicts it and happens to be right (sounds like you were last time round)........
    Yes, but not a guru at work, my guruic abilities are more honoured in the breach than the observance.

    Like everybody else, I had no idea how catastrophically the economy would crash. But at least I had figured out that not a lot seemed right, and made plans accordingly. Plan A was not to put everything in to gold by the way, but that's how it all ended up.

    For a lot of people, the OP included, rebalancing to create a more defensive portfolio is a question coming up here quite frequently now.
    The scorn I pour on faith in formulaic portfolios will not end any time soon either..._
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