1 Answers: Should "Growth Funds" Be Sold At Certain Times?

Question

If you own a “growth” index or mutual fund, should you sell them (assuming you don’t need the money) before retirement? Like, if you think a recession is coming, should you sell it? Or, do you just buy and hold for decades until retirement? By growth, I mean fast growing companies are in the fund. I’m wondering, because I have a Vanguard growth type of index fund. But, it’s been battered in the stock market lately. I don’t know if I should just buy and hold and never sell (even during down times or if I think it’s going to go down) and just wait until decades later in retirement to sell so it can compound? Or, SHOULD you sell them at certain times (and maybe rebuy later or buy another fund)?

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Anonymous 3 months 1 Answer 17 views 0

Answer ( 1 )

  1. It may be a good idea to sell some of your “growth” index or mutual funds so that you can avoid losing your gains over the years. You can change to a safer store of value like precious metals or government treasury bonds (t bonds).

    Then you can buy back into the market when/if it completely crashes. Possibly you could make far more gains by doing this, yet as always think through your specific situation and really think before you act.

    Yet I will say it looks like the market my drop quite precipitously, and if so then you may have done very well to have sold your stocks and put them in safe bonds or even gold.

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