jimtengo (@jimtengo) on getquin

6D·

Hello getquin community,

I am currently investing 250€ per month in the $IWDA (+0.03%) and 2x 25€ in $BTC (+0.94%). My long-term goal would be an allocation of 70% MSCI World/ $IUSA (+0.03%)20% BTC and 10% individual stocks.

Now my BTC share has risen to 26% due to the price increase and I am considering whether I should sell part of it and switch to my ETF position when the price rises again. However, I would have to pay 27.5% tax on the gains.

I actually take a long-term view on BTC and would like to keep the position and expand it further. But it would also be tempting to take something in the bull run in order to buy more in bear phases.

What do you think? Does it make sense to take profits or should I just let the position run and focus on long-term growth? I would be delighted to hear your opinions - thanks for your input!

12 Comments

Christoph@ChrisBizz

I would perhaps simply suspend the savings plan on Bitcoin and increase the other savings plan accordingly until things have balanced out again.

But 6% above the target value is not much anyway, given Bitcoin's volatility. If it corrects a little more, things will look different again.

•

Show answer

stocker_porwy@stocker_porwy

Profit taking has never made anyone poorer...despite taxes
The rest is a question of your personal priorities... if you don't feel comfortable with the now proportionally higher BTC share, take something out and invest it differently, if you want to take the risk and keep the chance let it run...hedging the BTC position downwards minimizes the risk...

•

Show answer

Invesdos@Invesdos

Well, 20% or 26% is not a huge difference and at €50 a month it can't be a huge chunk of money.

In any case, I'm leaving mine

•

Show answer

Silas@Bein-Godik

I would not include BTC in the rebalancing for the time being. The volatility is too high, so you have to constantly shift back and forth. Just let the BTC run with your savings rate

•

Show answer

Kai@Dividenden-Sammler

Simply weight your savings plans differently or suspend one at $BTC until your ratio is right again.

•

Julian@MoneyISnotREAL

When do you decide that today is the day X on which you want to rebalance to maintain your original composition?

Instead of fixed values, I would prefer to set limits, e.g. 20 - 30 %.
(in the overall calculation, this will result in < 100% oder >100%)

I don't have any crypto, but I would try to avoid the tax burden (1-year holding period). With your amounts, I assume smaller sums and as the previous posters have said, you can alternatively simply adjust the savings plans or let them run as before.

Things could look different in a few weeks: Bitcoin crashes, shares rise.
➡️Würdest will you then sell your ETF to buy Bitcoin to maintain the composition?

•

View all 2 further answers