ASK THE FOOL
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.I've owned shares in a blue-chip company for 16 years and they've done very well. Should I sell them now, pay a sizeable whack of capital gains tax, and invest in something else?
AR, Glasgow
A very Foolish question! It's great to see some long-term holdings. Here are some reasons we'd sell any share:
If we think we'll need the money within three to five years and preferably if the price is at a new high. No one knows what the market will do in the short term.
If that company is our only holding. Portfolios should be diversified. Our rule of thumb is to aim to hold eight to 15 companies, with no more than 33 per cent in any one of them.
If the reasons we bought and are holding the share are no longer valid.
If we find a better investment. (Make sure that the tax due on the gain would not defeat the purpose, though. It is often best to just hang on.)
These days, of course, most of us can buy all the shares we want within the tax-free wrapper of a personal equity plan or, after April, an individual savings account. Shares held within these tax-free wrappers are not liable for capital gains tax.
n Send us your question. If we publish it you'll win a 'FOOL' baseball cap. E-mail to UKColumn @fool.com or post to Motley Fool, The Independent On Sunday', 1 Canada Square, London E14 5DL.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments