Locking in Losses

[brianwh]

I am currently facing a dilemma which I am sure must be one being faced by many of you with SMSF's. Should you rebalance by moving more money into cash and sell shares/property thereby locking in losses?

 

[Julia]

I am currently facing a dilemma which I am sure must be one being faced by many of you with SMSF's. Should you rebalance by moving more money into cash and sell shares/property thereby locking in losses?

Isn't this something which is common to everyone, not just people with SMSF's?
Are you referring, perhaps, to your Investment Strategy Statement, which may have stated a given percentage in cash/shares etc?

Doesn't it have more to do with what you think is going to happen to the shares you are holding?

I might be quite misunderstanding what you're asking. Maybe give us some more info?

 

[brianwh]

Sorry for not being clear. I am in the process of changing from an Adviser and a Wrap arrangement to a SMSF. I am currently spread about one-third Australian Share market fund, one-third property funds and one-third cash. In most cases these funds have underperformed the market. My intention is to start my SMSF with some Australian Shares (direct purchase) and cash spread over a range of maturity dates. But the obvious implication of this strategy is that in selling out of these funds I am locking in these losses.