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.