facebookI am self-employed and I do not have a regular income. My savings are drying up due to COVID-19 but I have invested about $10k in stocks previously. I know it's a bad time but should I sell my stocks? - Seedly

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          Anonymous

          06 Jun 2020

          Saving Hacks

          I am self-employed and I do not have a regular income. My savings are drying up due to COVID-19 but I have invested about $10k in stocks previously. I know it's a bad time but should I sell my stocks?

          3

              Discussion (3)

              What are your thoughts?

              Elijah Lee

              Elijah Lee

              06 Jun 2020

              Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

              Hi anon,

              Sorry to hear about your situation. Do tap into government assistance first. I wrote an answer about that here:

              https://seedly.sg/questions/i-am-a-grab-driver-...

              If, after assistance, your emergency funds start to run low, then you might have to sell your stocks. Depending on the market situation, you might have to liquidate at a loss. However, we have to face the reality that stocks don't put food on the table, but money will. Thus, if push comes to shove and you need to sell your stocks, just do it. At least you could possibly recover at least half of your investment (hopefully) which would help you tide across another few months, during which I hope you will be able to find a job.

              You can always rebuild your portfolio and emergency funds after the economy recovers. As a self employed, please keep more in emergency funds as our earnings tend to swing wildly and are quite lumpy at times. Remember that any money invested should not be needed in the next 1 year at least, and probably more. This prevents you from having to liquidate at market lows. I wish you best of luck.

              Reply

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                  Pang Zhe Liang

                  Pang Zhe Liang

                  05 Jun 2020

                  Level 14·Senior Financial Services Consultant at AIA Singapore Private Limited

                  Cash Flow

                  Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.

                  Here is a Guide:

                  Understanding Your Personal Cash Flow

                  Improving the situation

                  Thereafter, we should brainstorm on the possible ways to increase your income and reduce your expenditure. Meanwhile, we will monitor your savings and other liquid resources to check how long we can last to this end.

                  Review

                  Next, we will do an investment review to understand whether your portfolio is capable to help you reach your goal.

                  If yes, then go back to brainstorming ways to improve your cashflow situation. By doing so, we try to avoid selling your stocks at a less than optimal position.

                  If no, then we have no choice but to sell the stocks since we need the money for survival. There are always opporunities in the market.

                  I share quality content on estate planning and financial planning here.​​​

                  Reply

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                      Depends on how much is the Profit/Loss now. If profit then sure. But based on your statement its lik...

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