What to do now ? (portfolio management)

[geoff1309]

I have decided to reduce my portfolio (50) shares 25% it's as I am now 80 years old and brain not so sharpen debts and my family well taken care of. shall I follow the old adage of selling losers and run with my winners, my loss on portfolio already 23% down . opinions please, thanks in advance.

[everhopeful]

Geoff it is difficult to give any thoughts on this without knowing what your holdings are and what you intend to do with the proceeds. I am not in the first flush either and it is my intention when I decide that I no longer want the discipline of managing our portfolio to move most of it at least in to world trackers. I have already given a potential list to my son so that he could do this if the grim reaper does not allow me the time to do it. ( VWRL VUKE VERX VAPX VAGP ) My wife is not interested in managing investments. We have quite a lot in a selection of ITs and they could probably stay.

Your question about retaining the winners is really not possible to answer as you might end up with a very unbalanced portfolio. A 23% drop suggests you may have had a not very diversified portfolio already.

When I agonise over these things I remind myself that like you my family are well provided for and when the time comes I shan't be worrying about it. So I take my grandson's advice and chill!

[tjh290633]

The market is down 15% since the start of the year, down 18% from its high point on 22nd May 2018, so you are not too far adrift.

I'm older than you and my intention is to move into a selection of ITs, some global, some UK oriented for income and maybe the odd specialist like a REIT or two. I do not like ETFs or OEICs by comparison.

They should require minimal management unless you are reinvesting your income. Simpler for those left behind to look after too.

TJH

[dspp]

I have decided to reduce my portfolio (50) shares 25% it's as I am now 80 years old and brain not so sharpen debts and my family well taken care of. shall I follow the old adage of selling losers and run with my winners, my loss on portfolio already 23% down . opinions please, thanks in advance.

Geoff,

1. Do you prefer me to leave this thread here, or would you prefer me to move it to Investment Strategies (viewforum.php?f=8) where others may have thoughts ? This Share Ideas board tends to only deal in individual shares so you may not get as much traction here. Equally the normal helpful & sensible folks tend to look in here so it may not matter.

2. I am uncertain as to what you are asking. Are you a) aiming to liberate cash to shift outside your portfolio (i.e. "reduce my portfolio"), or are you b) aiming to simplify management of your portfolio ?

3. If b) (simplify) then the risk-neutral way would be to sell a group of shares and to buy the nearest corresponding tracker. That would reduce the risk that you sell things just as they are about to rise again, but it would also reduce the risk that you sell things that carry on rising, i.e. it is a risk-neutral approach. At a guess, if your shares are typical FTSE-100 shares, then you could just sell the lot and buy a FTSE-100 tracker such as the Vanguard VUKE. That would be the simplest approach from an initial and an ongoing administrative perspective. (You could just as equally choose some of the ITs, but then you have selection & performance risk, and higher fees).

Just my opinions,
regards,
dspp

PS. I've taken the liberty of slightly retitling your topic to get rid of the CAPS LOCK that was upsetting some folks, etc.

[geoff1309]

many thanks to all repies

[geoff1309]

yes please move as you advised. Intend to sell off some Ftse100 shares and reinvest in Its for simplicity,still a risk but easier for me to manage. Thanks very much for your advice

[johnhemming]

I would be careful about selling losers at this stage. As things come back to something approximating normal stocks which have particularly suffered may return. My own view is that the market has taken a relatively simplistic view (which is normally really) and it will take results announced and guidance to get things back into kilter. Hence if you can work out roughly what that might be there are opportunities for stock picking.

I am personally very much a stock picker. I am currently a little bit up on the year, but well placed for a recovery.

[dspp]

yes please move as you advised.

Moderator Message:
Per geoff1309 request this thread has now been relocated from Share Ideas to Investment Strategies.

regards, dspp