Cash out gains?

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Topic Author
dmk395
Posts: 88
Joined: Sat Dec 30, 2017 9:13 am

Cash out gains?

Post by dmk395 » Mon Dec 31, 2018 11:05 am

I've been dollar cost averaging my SP500 index fund for about 15 years consistently. Really debating on taking out my gains, using them to pay down 25% of my house mortgage, and let the rest ride......thoughts?

Not looking to go to Vegas or a anything with the gains....lol

dbr
Posts: 31167
Joined: Sun Mar 04, 2007 9:50 am

Re: Cash out gains?

Post by dbr » Mon Dec 31, 2018 11:20 am

It all depends on your objectives, needs, and wants from here. There is anything from no reason to every reason to do this depending on you. The issue has nothing to do with some magic wisdom in cashing out gains.

chevca
Posts: 2988
Joined: Wed Jul 26, 2017 11:22 am

Re: Cash out gains?

Post by chevca » Mon Dec 31, 2018 11:43 am

What is your mortgage rate?

Why didn't you throw extra money at the mortgage in the past rather than in the S&P 500?

02nz
Posts: 2984
Joined: Wed Feb 21, 2018 3:17 pm

Re: Cash out gains?

Post by 02nz » Mon Dec 31, 2018 11:47 am

Depends a lot on your mortgage rate and the tax rate on the capital gains. If you have space in the 0% LTCG rate it may make sense.

BTW this is why there's a template with essential information for posting these questions: https://www.bogleheads.org/wiki/Asking_ ... _questions. Not everything on there applies here but certainly things like income, portfolio holdings, mortgage size/rate are relevant.

Dottie57
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Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Cash out gains?

Post by Dottie57 » Mon Dec 31, 2018 11:58 am

Given market volatility, I wouldn’t take gains now unless you really truly need the money. My accounts are down quite a bit.

Topic Author
dmk395
Posts: 88
Joined: Sat Dec 30, 2017 9:13 am

Re: Cash out gains?

Post by dmk395 » Mon Dec 31, 2018 1:20 pm

chevca wrote:
Mon Dec 31, 2018 11:43 am
What is your mortgage rate?

Why didn't you throw extra money at the mortgage in the past rather than in the S&P 500?

3.75%
I've been rapidly paying down and investing in the SP500. At 39 if I had no mortgage debt on all 6 properties I own, I could easily live off the rental income...

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Sandtrap
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Location: Hawaii No Ka Oi , N. Arizona

Re: Cash out gains?

Post by Sandtrap » Mon Dec 31, 2018 1:23 pm

dmk395 wrote:
Mon Dec 31, 2018 11:05 am
I've been dollar cost averaging my SP500 index fund for about 15 years consistently. Really debating on taking out my gains, using them to pay down 25% of my house mortgage, and let the rest ride......thoughts?

Not looking to go to Vegas or a anything with the gains....lol
Option:
DCA (dollar cost average) in reverse. Incrementally withdraw and pay down your mortgage.
As your net rental income increases, great!
j
Wiki Bogleheads Wiki: Everything You Need to Know

Topic Author
dmk395
Posts: 88
Joined: Sat Dec 30, 2017 9:13 am

Re: Cash out gains?

Post by dmk395 » Mon Dec 31, 2018 2:42 pm

Sandtrap wrote:
Mon Dec 31, 2018 1:23 pm
dmk395 wrote:
Mon Dec 31, 2018 11:05 am
I've been dollar cost averaging my SP500 index fund for about 15 years consistently. Really debating on taking out my gains, using them to pay down 25% of my house mortgage, and let the rest ride......thoughts?

Not looking to go to Vegas or a anything with the gains....lol
Option:
DCA (dollar cost average) in reverse. Incrementally withdraw and pay down your mortgage.
As your net rental income increases, great!
j
This was kinda my thoughts.....

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