bonne vie
06-10-2016, 11:38 AM
Long time since I posted on ST – rather disruptive couple of years.
I would appreciate thoughts on my conundrum, particularly (but not limited to please) from members who are near or in retirement or may have found themselves in a similar situation with now limited income pre retirement.
Currently I hold 45% cash 55% shares. I manage 60% of my shares –having started my portfolio 2008 and growing via share purchases, reinvesting profits and always participating in DRPs. Shares held in 17 shares and any future share purchases will be from proceeds of existing shares.
I hold a relatively high amount in cash:
1. To be able to ride out 2-3 years of share lows
2. Limited future income – will need to start drawing on it 2018 (4 years pre super)
I am sitting on healthy returns from my share portfolio (even healthier a month ago of course) and notwithstanding having the cash to ride out a downturn I am tossing up to either:
1. Continue to ride out the highs and lows.
2. Sitting on the sidelines 12 -18 months waiting for opportunities to buy back in at 10-15% lower prices. Sell all my shares in 13 of the companies (the likes of SML,FPH, HBL, CEN, MET etc) and retain the more “speculative” shares (BLT,PEB (yes still holding in there),WYN (ouch)) rather than lock in current losses. Retain one I have recently purchased. Option 2 is a riskier strategy because I would be “gambling” on adverse movements being more likely than continuing positives.
(Swapping into cash will mean low interest rates in lieu of dividends but overall should be relatively neutral)
Please don’t ask me for my analysis for considering option 2 – have to admit most is just from reading and gut feeling.
Thanks in advance
I would appreciate thoughts on my conundrum, particularly (but not limited to please) from members who are near or in retirement or may have found themselves in a similar situation with now limited income pre retirement.
Currently I hold 45% cash 55% shares. I manage 60% of my shares –having started my portfolio 2008 and growing via share purchases, reinvesting profits and always participating in DRPs. Shares held in 17 shares and any future share purchases will be from proceeds of existing shares.
I hold a relatively high amount in cash:
1. To be able to ride out 2-3 years of share lows
2. Limited future income – will need to start drawing on it 2018 (4 years pre super)
I am sitting on healthy returns from my share portfolio (even healthier a month ago of course) and notwithstanding having the cash to ride out a downturn I am tossing up to either:
1. Continue to ride out the highs and lows.
2. Sitting on the sidelines 12 -18 months waiting for opportunities to buy back in at 10-15% lower prices. Sell all my shares in 13 of the companies (the likes of SML,FPH, HBL, CEN, MET etc) and retain the more “speculative” shares (BLT,PEB (yes still holding in there),WYN (ouch)) rather than lock in current losses. Retain one I have recently purchased. Option 2 is a riskier strategy because I would be “gambling” on adverse movements being more likely than continuing positives.
(Swapping into cash will mean low interest rates in lieu of dividends but overall should be relatively neutral)
Please don’t ask me for my analysis for considering option 2 – have to admit most is just from reading and gut feeling.
Thanks in advance