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  • FIRST POST
    • Murmansk
    • By Murmansk 11th Sep 17, 6:44 PM
    • 89Posts
    • 24Thanks
    Murmansk
    Can I cash in if value rises?
    • #1
    • 11th Sep 17, 6:44 PM
    Can I cash in if value rises? 11th Sep 17 at 6:44 PM
    I've been doing a lot of research lately and have finally plumped for Vanguard LifeStrategy funds and purchased direct from Vanguard.

    Now I know that one should only invest with a view to at least five years but, for the sake of argument, if my funds went up in value by 15% after one year could I cash them in, take the profit and then buy another lot of the original value thereby "crystallizing" my gain?

    I've never had any interest in playing the stock market but what I've suggested sounds like a mild version of doing just that!
Page 1
    • JohnRo
    • By JohnRo 11th Sep 17, 7:06 PM
    • 2,617 Posts
    • 2,428 Thanks
    JohnRo
    • #2
    • 11th Sep 17, 7:06 PM
    • #2
    • 11th Sep 17, 7:06 PM
    You'd sell an amount of whatever you held at the time you want to cash in your gains, such that what you're then left with is an invested amount equal to where you started in terms of valuation.

    You can only buy again at the prevailing price on the day.

    The question is what to do with that profit you've then taken and what you'd do if your investment subsequently drops by 15% the following year, would you put the profit you took back in again?

    What if it went up 15% on average each year for three or four years?
    Last edited by JohnRo; 11-09-2017 at 7:08 PM.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • aberlyfid_2000
    • By aberlyfid_2000 11th Sep 17, 7:20 PM
    • 52 Posts
    • 13 Thanks
    aberlyfid_2000
    • #3
    • 11th Sep 17, 7:20 PM
    • #3
    • 11th Sep 17, 7:20 PM
    there's no harm in re-assesing things at regular intervals. but re-investing it in the same thing doesnt change anything really!
    • jimjames
    • By jimjames 11th Sep 17, 9:44 PM
    • 12,658 Posts
    • 11,328 Thanks
    jimjames
    • #4
    • 11th Sep 17, 9:44 PM
    • #4
    • 11th Sep 17, 9:44 PM
    Now I know that one should only invest with a view to at least five years but, for the sake of argument, if my funds went up in value by 15% after one year could I cash them in, take the profit and then buy another lot of the original value thereby "crystallizing" my gain?
    Originally posted by Murmansk
    How do you buy another lot at the original value as you've just sold for 15% more than you paid?

    But yes there is no reason why you can't sell up after a year or even a day should you so wish.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • jamei305
    • By jamei305 12th Sep 17, 7:46 AM
    • 347 Posts
    • 401 Thanks
    jamei305
    • #5
    • 12th Sep 17, 7:46 AM
    • #5
    • 12th Sep 17, 7:46 AM
    I've been doing a lot of research lately and have finally plumped for Vanguard LifeStrategy funds and purchased direct from Vanguard.

    Now I know that one should only invest with a view to at least five years but, for the sake of argument, if my funds went up in value by 15% after one year could I cash them in, take the profit and then buy another lot of the original value thereby "crystallizing" my gain?

    I've never had any interest in playing the stock market but what I've suggested sounds like a mild version of doing just that!
    Originally posted by Murmansk
    Would have been nice if I could have sold my late parent's house for 250k and immediately bought it back for the 9K they originally paid for it.
    • Malthusian
    • By Malthusian 12th Sep 17, 9:36 AM
    • 4,337 Posts
    • 6,841 Thanks
    Malthusian
    • #6
    • 12th Sep 17, 9:36 AM
    • #6
    • 12th Sep 17, 9:36 AM
    Now I know that one should only invest with a view to at least five years but, for the sake of argument, if my funds went up in value by 15% after one year could I cash them in, take the profit and then buy another lot of the original value thereby "crystallizing" my gain?
    Originally posted by Murmansk
    Assuming an initial investment of 100,000, it depends on whether the next time they go up by 15% you prefer to have 132,250 or 130,000. And whether the third time they go up by 15% you prefer to have 152,088 or 145,000.

    If you think having 145,000 is better than 152,088 then it's a terrific idea.
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