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austinhippie (71.19)

Rebalance or Do Nothing? Behavior difference in Taxable vs ROTH



October 08, 2013 – Comments (1) | RELATED TICKERS: MNST , PRAA , PNRA.DL

    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. 

1 Comments – Post Your Own

#1) On October 08, 2013 at 3:31 PM, EnigmaDude (51.88) wrote:

Personally, I am taking advantage of the bad news in DC to add some shares to my IRA.  But doing nothing is a good strategy too, especially it if affects your tax bill!

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