Getting rid of the losers

Many years back I was persuaded by a broker to buy shares in a business that was paying a substantial (I think it was 6-8%) dividend.  I was making my annual Roth IRA deposit and it sounded like a good deal.  I knew nothing about the company and asked even less, trusting the friendly broker who I mistakenly perceived as caring about my financial success.  Well, the company went downhill and was taken over by another and bottom line is I lost the equivalent of one year’s contribution.  

So, fast forward to now and I’m still sitting on this loser because a) its an a Roth and I can’t get a tax benefit for the loss b) the new company is still paying a dividend which would make up the loss in about 10 years.  I did some research and discovered I could claim the loss **IF** I closed out the entire Roth IRA.  I consulted a financial blog I follow and got various comments the most meaningful ones were “would I buy this stock again?” and “what could you earn if you sold and invested the proceeds?”  

Duh.  I think I knew I wanted to sell I just wanted a little push.  Which seems to be a pattern with my investing.  I’m not courageous enough to make a decision on my own.  I want to discuss it and have reinforcements, although it is still my decision and I own it.  

So today I put in a sell order.  I immediately felt relieved.  Good move.


About Bonnie Belza

avid reader, computer geek, genealogist, technical writer
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One Response to Getting rid of the losers

  1. KC Skinner says:

    The learning from this is to stay on top of all your investments – including the ones that were supposed to be an out of sight, hold until retirement ones. Good advice for us all.

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