Logically, you know your asset blend need to only change if your plans change. But in the face of extraordinary industry swings, you may perhaps have a hard time convincing oneself of that—especially if you’re retired or close to retirement. We’re below to help.
If you’re tempted to move your inventory or bond holdings to money when the industry drops, weigh your decision in opposition to these three details just before using any action.
- You will “lock in” your losses if you move your portfolio to money when the industry is down.
After you have sold, your trade can’t be improved or canceled even if conditions improve right away. If you liquidate your portfolio today and the industry rebounds tomorrow, you can’t “undo” your trade.
If you’re retired and count on your portfolio for cash flow, you may perhaps have to take a withdrawal when the industry is down. Though