We are in the middle of an epic financial downturn. The time to buy stocks is now. Selling stocks is not as wise as it is scary. I have come up with a few scenerios for deciding when to sell stocks. Finally i will close with a possible monkey wrench in everything.
1. Sell only stocks that will yield enough to pay off all debt or major debts. Car, house and credit cards will hurt the pocket far worse than the possible gains from keeping the stocks.
2. Sell the top dollar stocks now but only as many as needed to pay off debts.
3. The stocks with least value will have the most swing if they go up and keeping more units gives a greater probability that at least some of them will survive with future gains.
This plan asumes you are able to work and have hopes to continue working.
Remember in a down economy taxation will be high and having little debt as well as income can be a good thing. The thing to remember is Property Tax… make sure you can pay it!
The Monkey Wrench: I forsee a time soon when stocks will be obsolete. This current situation seems a good time for a new form of wealth to be formed. I have no idea what and i am buying stocks…