[supafamous]

Originally Posted by PeanutButter

I think this depends on your risk tolerance.

AMZN is -30% Year to Date, they have their earnings coming out in a few days so if you're thinking of selling your AMZN stock you should consider how the earnings will affect the stock price.

If you can tolerate more risk, many would say to keep your mortgage as long as you can and do not sell your amazon stock.

If you're more conservative, many would say to sell the stock and pay down your mortgage.

If you're on the fence, maybe the happy medium is to sell enough to pay off five years of your mortgage and let the rest ride?

Personally, I think the prudent thing to do is to sell a little bit of stock to hold cash in this environment. The narrative right now is that the market will continue to fall and interest rates will continue to rise. The fact you're still up on your AMZN is great, you can realize profits and still be happy that you made money. In the short-term (1-3 yrs) it's better to have cash to weather out a potential storm than to be all in the market and miss out on whatever the upsize may be.

I wouldn't sell everything because I think you still need exposure to the equity markets, but there's something to be said about having cash and not having to worry too much for the next few years.

My mother would say, "Better to be safe than sorry". My buddy would say, "You gotta risk it for the biscuit". I would tend to lean more towards my mother, but not all the way.

Thanks, I'm up 16x on Amazon even at current prices and the money was always intended to go pay down the mortgage before renewal in 4 years so I'm trying to decide if it's realistically going to be much higher between now and then. With recession a pretty sure thing (I'm expecting a bad earnings call). I think Amazon is undervalued right now but it might also be time to cash out some of it to get a bit more peace of mind (I'd net $200k even at current prices).

OTOH, I can deal with another 2% increase in rates - it's just not fun at all watching it go to interest and definitely does delay some fun stuff I could do with our money (if rates go up another 2% my payments would have gone up $4400/mo in a year). Gonna call the bank and see what my lock-in options look like too.