I am wondering if anyone is thinking in these terms. We applied in December 2021 in a fund (IMGA Acoes Portugal A) and it was 350k which is currently perhaps around 420k, i am wondering if it goes parabolic and lets say its 700k in a year. Is it worth it to wait another 5 years to take funds out, perhaps give up on GV and take the profits?
Interesting thought! And then what? apply the GV again? Maybe you should not have applied GV in the first place and should have invested something else.
Not sure if I’m capable of answering the hypothetical question in any useful way. However, it does raise a related question (at the risk of complicating things further). Is there a rule against withdrawing a portion of your earnings above the EUR 350K? Using your figures, what’s stopping you from withdrawing EUR 200k and leaving EUR 500K? As long as you keep a balance of EUR350K, does that that maintain your compliance with the GV requirements?
Or could you even cash out and then buy something else, with overlap on the timing?
Using this logic, if the market moved the other way then you’d need to top up. My understanding is that you need to maintain the original investment, doesn’t matter if it goes up or down in value. You can take profits that are distributed, e.g. dividends, or in a closed end fund if they distribute profit but you maintain your original unit holding.
Common understanding is your investment cannot be reduced by withdrawals
I would not. I have money. I want a European passport. Stopping partway through the gv process doesn’t get me what I want
Depends how badly you need that cash and what for.
I encourage people to think more holistically about living their lives (how, where, why) vs. simply counting their greenback dollars as a self-contained activity.