I am aware of the advice to never time the market.
Purpose of my question is to understand:
Q: Does shorting my positive accounts, while continuing to invest at the same rate count as timing the market?
Reason I ask:
My taxable portfolio is doing quite well this year, and I investigating the idea of taking out ~100k of my taxable portfolio to fully pay off my rental property and personal mortgage (allowing for enough buffer to account for taxes gained).
From doing this I will free up an $800 monthly mortgage payment worth of income, and also be able to start using the $550 from my investment property towards other savings/other ( 550 = my 1/2 of the rental income as I share the home w/ my brother).
This will capture the 3.5% on 57K I owe for my home and 4.75% on 45K I owe on my 1/2 of the rental. So it will turn my immediate cash into saving that amount of interest.
Then I will redirect all of this freed disposable income, into increasing my monthly taxable investments from 1k --> ~2.5k.
Questions:
1)Does this seem rational? Or does this go against the "don't time the market", because I am selling my funds while they are very high?
2) Comments or opinions.
Note* - I understand I will be missing the delta of interest because 7% SP avg is higher than 3.5% or 4.75%, but if there was a good time to get rid of some debt, now seems as good a time as ever. Especially if i will continue to capture market investing w/ the freed up income.
Purpose of my question is to understand:
Q: Does shorting my positive accounts, while continuing to invest at the same rate count as timing the market?
Reason I ask:
My taxable portfolio is doing quite well this year, and I investigating the idea of taking out ~100k of my taxable portfolio to fully pay off my rental property and personal mortgage (allowing for enough buffer to account for taxes gained).
From doing this I will free up an $800 monthly mortgage payment worth of income, and also be able to start using the $550 from my investment property towards other savings/other ( 550 = my 1/2 of the rental income as I share the home w/ my brother).
This will capture the 3.5% on 57K I owe for my home and 4.75% on 45K I owe on my 1/2 of the rental. So it will turn my immediate cash into saving that amount of interest.
Then I will redirect all of this freed disposable income, into increasing my monthly taxable investments from 1k --> ~2.5k.
Questions:
1)Does this seem rational? Or does this go against the "don't time the market", because I am selling my funds while they are very high?
2) Comments or opinions.
Note* - I understand I will be missing the delta of interest because 7% SP avg is higher than 3.5% or 4.75%, but if there was a good time to get rid of some debt, now seems as good a time as ever. Especially if i will continue to capture market investing w/ the freed up income.
Comment