When investing via robo investors like StashAway, when would be the right time to cash out? I know never to time the market, but when should I cash out? - Seedly
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Anonymous

Asked 2d ago

When investing via robo investors like StashAway, when would be the right time to cash out? I know never to time the market, but when should I cash out?

StashAway recommends 3-5 years before deciding. But if I were to not look at it and just invest religiously and DCA every week, when would be a good time to "reap the benefit"?

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Yang Teng
Yang Teng
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered 2d ago

You can withdraw when you have met your investment objective.

If the goal at the start was $40,000 for a house downpayment, then once you have achieved your goal, you can cash out.

If the investment is for retirement, then ideally, you should not liquidate it before you actually retire. The exception is when the business/fund/methodology has changed drastically and no longer align with what you believe in.

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Question Poster

2d ago

But what if I'm investing with no clear goal in mind. Should I, for example cash out because I need the cash for home renovation? Or not touch it unless absolutely necessary.
Yang Teng
Yang Teng

2d ago

Future planning is therefore important. If say, I need cash for home reno in 3yrs, I'll start accumulating more cash or equivalents now and not put them in investments such as equities or funds. After 3 years, I'll withdraw them for reno use.
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Kevin Seah
Kevin Seah
Level 5. Genius
Answered 2d ago

Try not to cash out if you have the holding power to keep your investment holdings intact. The market always recovers. Diligently carry out dollar cost averaging even when the markets are dipped as it is a good time to accumulate more stocks for future growth.

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Xue Miao
Xue Miao
Level 4. Prodigy
Updated 2d ago

Hello! As we can see from the whole COVID-19 situation, economy and the markets right now, we can tell that sometimes the stock market is very unpredictable.

If I'm not wrong, robo-advisors like Stashaway would ask for your preference in terms of your investment horizon. I suggest you stick to what you've chosen initially, as they would be able to advise your investment risk based on the time horizon you've chosen.

It's really difficult to give an 'ideal length' to it since we wouldn't know how the market would be like 3 years from now, or 5 years.​​​

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Jovan Lai
Jovan Lai

2d ago

Https://youtu.be/B5-IpSYbeiQ This is one video to start. (: if you are having trouble, I can share 1. An analogy with regards to the recent COVID crash 2. Numerous Historical evidence Active investing is very exciting, but most people unfortunately stick with passive because of many myths of the stock market
Xue Miao
Xue Miao

2d ago

Hello Jovan! Sorry, I might have not phrased it well, yes you're right! Thanks for pointing out the correlation between the stock market and economy. :-)
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