Before you withdraw from an investment you should understand all the implications, risks and costs involved.
Crystallising losses. If the value of your investment is falling, you are technically only making a loss on paper. A rise
in prices could soon return your investment to profit without you doing anything. Selling your investment makes any losses real and
irreversible.
Incurring capital gains tax (CGT). Make sure you know what your CGT position will be before selling any asset.
Losing the benefits of compounding. If you’re thinking about making a partial withdrawal from an investment, remember that
it’s not just the withdrawal you lose, but all future earnings and interest on that amount.