When Should I Sell My Stocks?

About this Video

• Video Title: When Should I Sell My Stocks?
• Channel: The Compound
• Speakers: Ben Carlson, Duncan (mentioned)
• Duration: 00:32:24

Introduction

This video addresses audience questions about selling stocks, particularly relevant for retirees needing to liquidate assets for income. Ben Carlson discusses strategies for selling stocks for emergency funds, optimizing required minimum distributions (RMDs), financing home improvements, and retirement planning with pensions. He also provides book recommendations.

Key Takeaways

• Emergency Funds & Stocks: The host explores the unconventional idea of using a portion of an emergency fund invested in stocks to hedge against inflation, weighing the risks of market volatility against potential long-term growth. The recommendation leans towards a hybrid approach, combining cash and a small percentage of stocks in the emergency fund.
• Required Minimum Distributions (RMDs): The video explains RMDs, how they're calculated, and different strategies for withdrawing funds (monthly, quarterly, annually). The host suggests that while mathematically, spreading withdrawals over time might be beneficial, individual risk tolerance is a key factor.
• Home Improvements & Leverage: Using a home equity line of credit (HELOC) for home improvements is discussed, considering the tax advantages and flexibility it offers. The host advocates for leveraging when appropriate, acknowledging that it involves taking on debt and potential interest rate increases.
• Retirement Planning with Pensions: The impact of pensions on retirement planning is examined. Pensions are valuable, providing a steady income stream and simplifying financial planning compared to relying solely on portfolio withdrawals. The value of a pension is often underestimated.
• Fiction Book Recommendations: The host shares recommendations for fiction series, categorized by character type and style (e.g., action hero, detective, everyman), encouraging viewers to explore the genre.