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Mon, February 3, 2025

Ask an Advisor: Should We Cash Out? Our Investment Portfolio Fell From $450K to $250K


Published on 2025-02-03 08:21:22 - MSN
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  • Our investments were $450,000 and are now $250,000. How much do I lose before I cash in investments? -Liz I'm sorry that you've experienced such a significant financial loss. I know that can be stressful and scary as you wonder whether

The article on MSN Money discusses a couple in their 60s who are contemplating whether to cash out their investment portfolio, which has significantly decreased in value from $450,000 to $250,000. They are concerned about the market's volatility and their financial security, especially since they are nearing retirement. The advisor, in response, suggests that while the drop in value is concerning, cashing out might not be the best strategy. Instead, the advisor recommends assessing their overall financial situation, including other income sources like Social Security, pensions, or annuities, and their risk tolerance. The advisor points out that markets can recover, and selling at a low point could lock in losses. They suggest rebalancing the portfolio to reduce risk, perhaps by shifting towards more conservative investments, and considering a financial plan that might include a bucket strategy where funds are allocated for different time horizons, ensuring liquidity for immediate needs while allowing long-term investments time to potentially recover.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/investment/ask-an-advisor-should-we-cash-out-our-investment-portfolio-fell-from-450k-to-250k/ar-AA1aXgn1 ]
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