Sell Scottish mortgage profit to fund new kitchen? Cash in or keep..

[Snowsnowglorioussnow]

I had a modest roughly £1500 investment in sm and its gone up 160%...

Should I cash in my rough 3800 profit and put it in pb whilst we Raise more ££?

Can it possibly continue our go higher?
Desperate for new kitchen our most be nealry 25 years old if not older.. No kick boards, etc..

OR is there sense in holding onto it?

Maybe keep it going or sell and buy the more regular funds..

Your profit isn't £3800, it's only £2400.

I am not good with maths but its def 3800

Surely you'd need more than that if your kitchen is that old? It's not a case of just changing the doors and counter, that's a full rip everything out and start again job.

Yes, but selling out would mean we are 3800 closer to a goal.
Everything will need replacing and plastering..

But we don't have want anything fancy... Anything will seem incredible compared to what we have!!
Just wondering if I'm making a big mistake though and will the profit compound..

I would put it premium bonds whilst waiting for more..

Talk to an IFA instead of randoms on the internet??

IFA - they wouldn't even take my call

I ve always had fabulous advice from the mn randoms I just need the ones who have sm.

Could you not get something interest free to have the kitchen done? I was looking into this and an 8k kitchen from Wren would be a minimal amount per month. Not advocating getting into debt but if it's the only way. I've always put stuff off and made do, don't see the point anymore, who knows what could happen a week, month year down the line.

Your profit isn’t the total. You’ve made good money but if your total is 3800 you’re profit isn’t that, it’s the difference between the start and end. Did you have a goal when you invested that money? Why did you pick that IT? Is it your only investment? Those questions will have a bearing on whether you should sell out. Eg if you just plonked it in at random and it’s your only investment , it’s likely too risky for you. If it’s a small part of a balanced portfolio then a different discussion.

Scottish Mortgage Investment Trust is doing incredibly well but you need to remember that what goes up may go down.
Only put in what you can afford to lose.

You say you only want advice from SM holders. I was always advised to keep my shares for the longhaul ie 15+ years. Longterm growth. As such, my SM will be in there for the foreseeable future.

Pumpkin very true, I'm just extremely adverse to the debt and with the corona, 1⃣ wonders about job stability.. Ie of rather carry on with the rickety old kitchen than get into debt over one. Having said that... It is awful! ⚒ Tops coming away from the sides..

@Dustyhedge I saw on there today my profit is 3800 I probably got the initial investment figure wrong.

Scottish and one or other funds are what I call my.. Take a chance funds... My other investments are stable and super sensible vanguard life stragety and index funds. All that doing well but it's the sm that's driven the isa forward... Yes I'm a total novice but I'd say its pretty OK ish balanced.

Lous I also agree investment for the long term but I am wondering how much higher can it go? Its at 160% for me, I a manged to first get in when it was cheap..

I know its an over all great fund but how many funds keep going at such high returns.
A new kitchen of course would be a valuable investment in my home... But sm is driving by isa forward.

What I'm not quite sure of is have I brought more shares or have the ones I have rocketed in price?

Lous also I wouldn't totally sell out I'd just keep my initial investment in there and takeout the 3800 profit

It really depends on how badly your kitchen needs replacing tbh.

A friend sold his Scottish mortgage about 18 months ago because he thought they couldn’t possibly go any higher 🤷‍♀️

I am keeping mine. But I am younger and further away from retirement so happy to be in it for the long long term.

I'm explaining myself so badly, so sorry to anyone reading.

I guess what I mean is... The fund has increased a whopping 160% on my initial investment, however, can that go poof and I literally have nothing to show for it ie.. No increased volume of shares...

Or have I got more shares or something.. So even if the price goes down... I have more than I started with..... That sort of thing....

I'm do believe over all its a great well run fund so if it crashed, I'm not at a huge loss... It's part of a wider portfolio.. However... It's made a wonderful boost to my isa which is our cushion savings.and if I did cash in the profit I would keep my initial investment. I'm confusing myself

Last hopeful bump

DH (retired fund manager) is advising me to 'top slice' my SM and reinvest in a less overexposed fund, as the current price is higher than the asset value. However I have A LOT in there so the risk is higher. I would say it depends very much when you are planning to do the work.

If soon, you won't 'lose' much if it continues to rise.

@toconclude thank-you, loving the terminology, top slice!!

I'm going to keep my original investment in there...

If I keep the original investment won't that grow a gain!

@Snowsnowglorioussnow

If I keep the original investment won't that grow a gain!

If the price of the share continues to rise, yes. That's the risk with investments, although SM has so far done very well.

If the price falls, your original sum reduces but you have the profit if you have taken that out already.

Like all of these things it's worth considering what are your financial goals? What is the end game of your investments? If you already have a balanced portfolio then the simplest thing could be to proportionally cash out all of them the amount you want to withdraw. I "banked" profit from a well performing fund and in hindsight I should have left it all invested there and I'd have made a boatload more. i.e. predicting the future is hard.

Bung, financial gosling is to steadily grow what I have in my isa, I have confidence in my portfolio to grow...and I want to hold onto it all as my fail safe but..

Sm has done soooo well.... We really do need a new kitchen, we couldn't rent this house out without one.... Whilst we are not materialistic etc and work with it...

It's the balance... Take out profit and give us this amazing base towards one or.. Keep and actually it will boost my isa massively??!!