Rebalance or Do Nothing? Behavior difference in Taxable vs ROTH
An entry from my lonely path - yesterday I sold a bunch of BIDU and SBUX and today I woke up intending to have PNRA, PRAA, BH, REX, MCC, and MNST on my shopping list. But MNST has taken off and I didn't get the price I wanted on my BH shares, so I am waiting.
I wish I was always a long term buy and hold investor, but I'm not. I behave that way in my taxable portion of my portfolio but in my ROTH, I know that if the price goes down, then I have less. So my instict tells me to sell. While I don't ever allow myself to regret a selling decision, I do sometimes wish that I could let it go and not focus on my portfolio allocation so much. But I have found myself rebalancing twice this year in sudden sprees of selling and subsequent buying. And I've made a packet, but only in my ROTH account. I am wondering if I should take the leap and start managing my taxable portfolio in the way that has been so profitable for me with my ROTH, but I guess I am affraid of doing something new. If I pursue that path, then I will have to do things that are new to me, like pay taxes to the government on my own as an individual rather than easy-style like I do from my job. I never see that money. My employer pays it straight to the government on my behalf so that I never have to think about it.
In these situations, I take heed of gleenings from other Fools, that doing nothing is absolutely okay. I love the companies that I own in my taxable portion of my portfolio, but I can't deny that those positions are no longer in value territory. I'll sleep on it again.