Is Redeeming from Investments Killing the Golden Goose?

First of all let me greet you a Happy Easter Sunday but we will not be talking about Easter eggs or bunnies but rather a goose - particularly the Golden Goose. The Golden Goose is an icon to something that creates wealth. Something that lays golden eggs just like in the stories and fairy tales. People consider their wealth-generating assets as golden geese as it gives them more income like having golden eggs. But sometimes investors need to redeem from their investments for some reasons. And some would say that it is like killing the Golden Goose? Is it or is it not?

Are you killing your Golden Goose?

When is it "Killing the Golden Goose?"

When you withdraw from your stocks or mutual fund investments it doesn't necessarily mean that you kill your golden goose. It actually depends on what is your reason for doing it. Some people would just withdraw because they have something to buy that's not really necessary. If you will redeem all your shares or even a portion of it for expenses like a new gadget, a new clothes or a new shoes or may be a travel vacation package, then you are killing your golden goose. The money that you will be spending for those kinds of expense will not give you 'golden eggs' but rather you are consuming the golden eggs and aside from that, you have also 'killed' your source of golden eggs. Remember that some golden goose are really generous in giving away eggs and you have also lost that opportunity. If there would be other options or other source of money for those expenses above, then do that and don't redeem from your goose.

Getting a Fatter Golden Goose

Sometimes, we have to kill our golden goose because we have already taken profit from it or at least reached our target - maybe we only aim to reach a number of golden eggs before we kill it. And that does not stop from there but after taking profit, we use that profit to buy a fatter golden goose. A golden goose that lays bigger eggs or more eggs than the old one. If you are doing this, then it's okay to kill the 'older' golden goose since you are aiming for a bigger and more golden eggs. Or probably after killing it, you were able to buy two or more golden goose.

The Bottomline - To Kill or not to Kill

Well, it is okay to kill your Golden Goose if you have already taken profit from it and you will re-invest it to get bigger, fatter and healthier golden goose or two. Don't redeem or withdraw if you are just going to eat the eggs. Remember that not everyone has the opportunity for a 'golden goose' asset just like what you have.

Image credits: http://en.wikipedia.org

Mark Hugh Neri

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