What is ur opinion or experience?
Is it ever ok to skim a small % (<5%) from long term ETF holdings when the market is this volatile? In my residence – I will not trigger taxes if I sell. I'd like to lock in some profit, rebalance & keeps some more cash handy for reinvesting. Or will this completely screw up my portfolio, I've never sold anything from my long term ETFs before? I do have some cash on the side for dips & I'm still DCAing monthly, but feel like it's an opportunity to take some profit & redistribute/wait for dip.
Taking profits in long term investing
byu/jackieHK1 ininvesting
Posted by jackieHK1
4 Comments
These are long term holdings? If so, leave them alone
Lots of people take umbridge with it, but I do this religiously every year. Come January, I sell 52 shares at the 200-day moving adverage to DCA back into that particular holding. I have everything as FIFO for easy tax purposes. It’s never a bad thing to crystlize your profits. You just dont want to stay out of the markets trying to time your buy back. Good luck OP.
Are you rebalancing, or taking profit out to spend on something? Rebalancing is a natural part of investing. Taking money out of ETFs for something like real estate is a pivot in investment strategy. Lots of people will roast you for trying to time the market, as mountains of data suggest you are going to take out at the wrong time and put back in at the wrong time. However, if you had some positions shoot up a lot, and others are lagging, then rebalancing will sell the winners and buy the losers.
Absolutely it’s ok. I sold my xop when oil was way up and added to other etfs that were beat up.