Cashing in my stocks
Hi Terry,
I retired at age 70 from my job and now get social security. I invested in 4 stock over the years and have about 250 thousand . But it has been losing money. Should I cash out my stock and put the money in the bank or try to hold out a little while, this is all the money I have except for a little saving. I did not make a lot of money while working but tried to invest a little while taking care of my family.
Terry Says
You did a good job of investing. Now we are in a bear market and there is a reasonable possibility that your stocks could go even lower before they turn around. You don’t want to be without a cash reserve. You might sell about 25% of your holdings now — and keep the money in a money market fund. Of course, be aware that you will pay taxes on the gains (assuming you still have some) and that this additional income could raise your Medicare Part B premium. But having some cash will let you sleep at night and ride out the decline — even if it takes a couple of years.
