Should I sell some VOO now for extra cash?

I feel like I’m low on cash right now, even though my investments say otherwise.

I have $200K in a taxable brokerage account in VOO and $50K in a 5-month CD. Other than that, I’ve got just $2-3K in checking.

I’m planning to buy a house sometime in the next 3 years. I have $150K in equity in my current home, but I’d prefer to buy the new place first and sell my existing home afterward.

If I found a house today, I’d need to sell about $50K from my taxable account. That’s fine as long as the market is up, but I’m wondering if I should take some out now while it’s at record highs (already up 4% this year) and put it in a high-yield savings account for some flexibility.

Or should I just leave everything where it is and build my cash reserves through income? I should be able to save another $50K this year if I don’t invest more, plus my CD unlocks in June with another $50K.

If you might need the money soon, it shouldn’t be in VOO. Simple as that.

Dru said:
If you might need the money soon, it shouldn’t be in VOO. Simple as that.

I’m not sure if I’ll need it or not. Maybe a 25% chance I’ll need it before June.

Tamsin said:

Dru said:
If you might need the money soon, it shouldn’t be in VOO. Simple as that.

I’m not sure if I’ll need it or not. Maybe a 25% chance I’ll need it before June.

Stock market returns are best measured over decades. Even if you need the money in three years, you’re still taking a risk by keeping it in stocks.

@Dru
Really, the only debate is if I need it in the next 6-12 months. In a year, I’ll have another $50K in cash from savings.

Your mix of investments and cash reserves looks solid. It might make sense to pull $50K now and put it in a high-yield savings account so you have some flexibility. What’s your outlook on the market in the coming months?

@mercy
I think the market will stay strong under Trump. But I don’t want to be too greedy. If I sell now, I lock in my 4% gains and can earn another 4% in a high-yield savings account—same as the market average but with no risk.

If it were me, I’d sell some VOO and move it into a money market fund or sweep account (currently earning over 4%). I actually did this today just as a defensive move.