With market high, should I sell some stock and pay off car loan?

How big is the loan? Don't forget you'll have to pay some taxes on the gains from sale.

How about a moderate approach and move some (not all) of the funds in stocks to a bond or other income/stable value product? You get some upside win with good downside protection.

At 0.9%? Lol no

pop_pop!_v2.2.1 wrote:

How big is the loan? Don't forget you'll have to pay some taxes on the gains from sale.

How about a moderate approach and move some (not all) of the funds in stocks to a bond or other income/stable value product? You get some upside win with good downside protection.

Just under $9500 to pay off.

It's my only debt beside mortgage and it would be nice to lose that $318 monthly payment almost 2.5 years early.

Just trollin bro wrote:

At 0.9%? Lol no

Exactly. Your using other people money for the loan. Its nearly free to you. Do NOT proceed, imo.

Selling 10k in stock will cost you $1500 right off the top (depending on your tax situation).

Oh goodie another stock market expert with a gut feeling about a crash.

I remember in early November 2016 when everyone predicted a crash. Then in December when what 49% of the US voted for was confirmed--everone predicted a crash. Then in January when the worst thing imaginable to ever happen to the US actually happened--evetyond predicted a crash.

So yes, buy mason jars and pull all you money out to bury in your back yard.

guesser 1 wrote:

Just trollin bro wrote:

At 0.9%? Lol no

Exactly. Your using other people money for the loan. Its nearly free to you. Do NOT proceed, imo.

Selling 10k in stock will cost you $1500 right off the top (depending on your tax situation).

If you sell some of your stocks that are at a loss, you come out ahead on taxes, and can even use up to $3000 in losses to offset income.

Investment gurus wrote:

The car loan is only at 0.9%. But I'm thinking that there is a decent chance the market will correct 10-25% at some point in the next year or so, so why not sell some stock while it's high? Is this just foolish me trying to 'time the market'?

Flagpole and Igy ... what would you do?

You've already made a huge mistake by being invested in overvalued stocks. Cash is king right now.

Rather than compounding your error, sell now.

Fiat currency is king? Better buy gold and bitcoin with overvalued paper.

Bitcoin?! LOL!!

Ghost 0f Igloi wrote:

You've already made a huge mistake by being invested in overvalued stocks. Cash is king right now.

Rather than compounding your error, sell now.

Ghost, yes I agree that many stocks are overvalued... but, with global markets in turmoil, that money is leaving and seeking shelter elsewhere. Can we see an actual continuation of market climb? Also, what about bond issues? Is that not another issue that capital will flee, and ultimately end up in stocks?

Investment gurus wrote:

The car loan is only at 0.9%. But I'm thinking that there is a decent chance the market will correct 10-25% at some point in the next year or so, so why not sell some stock while it's high? Is this just foolish me trying to 'time the market'?

Flagpole and Igy ... what would you do?

Sell the stock. S&P 500 earnings match those of 6/30/2014 when the index traded at 1,972. The market is likely to be down your 10-25% at almost any point in time. Pay your capital gain, own your car.

Igy

Ghost 0f Igloi wrote:

Investment gurus wrote:

The car loan is only at 0.9%. But I'm thinking that there is a decent chance the market will correct 10-25% at some point in the next year or so, so why not sell some stock while it's high? Is this just foolish me trying to 'time the market'?

Flagpole and Igy ... what would you do?

You've already made a huge mistake by being invested in overvalued stocks. Cash is king right now.

Rather than compounding your error, sell now.

Not me, reported to the Moderators.

Fake Igy on this thread.

Bring Back the 880 wrote:

guesser 1 wrote:

Exactly. Your using other people money for the loan. Its nearly free to you. Do NOT proceed, imo.

Selling 10k in stock will cost you $1500 right off the top (depending on your tax situation).

If you sell some of your stocks that are at a loss, you come out ahead on taxes, and can even use up to $3000 in losses to offset income.

Well, yes, I meant long stock market gains, but I would still not do it.

guesser 1 wrote:

Bring Back the 880 wrote:

If you sell some of your stocks that are at a loss, you come out ahead on taxes, and can even use up to $3000 in losses to offset income.

Well, yes, I meant long stock market gains, but I would still not do it.

You're going to pay taxes on gains whenever you sell. Nothing wrong with selling, if you need the money.

He doesn't need the money. He's satisfying his sense of order by eliminating debt.

I'd keep the loan. It's at an interest rate that is lower than inflation. Even if you just pay in the ordinary course, you're coming out ahead.

Selling stock makes sense if you knew that a correction is coming. You suspect it, but don't know it. You have to do some speculative math (likelihood of a correction multiplied by multitude of loss) to figure out if it's worth it, but by its nature it's speculative.

Now I will go old school conservative: Remember that your investments are long term investments. Depending on your planned retirement and expected lifespan, you may be looking at a 20-40 year investment horizon even if you're 45. Set it and forget it. Let that money grow over time. Stay the course.

Republicans in power = buy gold

As a poster above said, do some math. Calculate and compare your remaining interest payments versus your capital gains tax obligation. If that comparison says to leave your stocks alone, do so but hedge your situation by setting up a trailing stop to sell your stock if it falls by X%.

Investment Advisor wrote:

As a poster above said, do some math. Calculate and compare your remaining interest payments versus your capital gains tax obligation. If that comparison says to leave your stocks alone, do so but hedge your situation by setting up a trailing stop to sell your stock if it falls by X%.

Wrong. For one the so called "Investment Advisor" does not know how a tailing stop works. The stop could blow thru the stop price and sell at a price far below what was expected. It is best to evaluate the position against historic measures which in most cases would tell you to take your gain.