Remember when I asked for your help deciding whether I should cut my losses on some ETFs in my Roth IRA or hang on and wait for a turnaround? Well I finally listened.
As of Dec. 29, I’ve moved nearly $7,500 from two underperforming energy and pharmaceutical ETFs that were the last things keeping me in any sort of relationship with the advisor whose lack of diligence provided the inspiration for me to take the reins of my financial life.
If you haven’t read the original post, the gist is that when I transferred my old 401(k) I followed my advisers advice to split the allocation amongst six stock picks. The more familiar I got with data and low-cost index investing, the more I realized that wasn’t what I wanted to do. I sold off the stocks that had held their own or gained anything, but I kept two funds that had tanked and were down $2,000 from when I purchased them.
However, because I didn’t really want to be in those funds — nor with that adviser — I was conflicted on whether to sell at a loss and get into funds I DID want, or hold on and wait for a rebound so as to not sell low. By and large, everyone who weighed in suggested I not get too hung up on the $2,000 loss and instead get that money where I wanted it to be.
I’m happy to say I was able to overcome my sunk cost bias, listen to the sage advice of all my readers who chimed in, and move that money over.
Thanks for all your help!