Early mistakes made. Cut my losses?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
slapstix
Posts: 23
Joined: Sat Jun 14, 2014 4:07 pm

Early mistakes made. Cut my losses?

Post by slapstix » Tue Jan 14, 2020 10:15 pm

Hello BH crew,

First off thank you in advance for taking a minute to give advice.

I opened a Roth IRA with Fidelity about 8 years ago when the "light bulb" turned on and I realized that I'll need more than a few hundred thousand to retire comfortably (it was also before finding the resources here).

Not knowing anything about stocks I bought companies and industries that I thought were interesting, or I tried to buy a company when it took a big hit to its stock price.

Should I just sell everything and move it all to FZROX? Or, should I leave everything alone for years assuming that one day the Total Gain/Loss will be back in the green? I'm literally investing the minimum each quarter to keep the account open, and not wanting to invest in individual companies, and need to get rid of these bad decisions:

CORE: 10%
FENY: 41%
GE: 9%
JNJ: 8%
MSLP: 1%
SLM: 31%

My Total Gain/Loss is -22.72%, with the only security in the green being JNJ.

Thank you!
I know stuff, I jump through snow

123
Posts: 5430
Joined: Fri Oct 12, 2012 3:55 pm

Re: Early mistakes made. Cut my losses?

Post by 123 » Tue Jan 14, 2020 10:21 pm

FZROX will giver you more diversification and provide market returns. Since it's a IRA you can switch without tax consequence. Do it. Relax.
Last edited by 123 on Tue Jan 14, 2020 10:23 pm, edited 1 time in total.
The closest helping hand is at the end of your own arm.

User avatar
whodidntante
Posts: 7130
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Early mistakes made. Cut my losses?

Post by whodidntante » Tue Jan 14, 2020 10:21 pm

slapstix wrote:
Tue Jan 14, 2020 10:15 pm
Should I just sell everything and move it all to FZROX?
That would be better than the basket [case?] of stocks you currently own.

Good job admitting that you were the problem. Some people never do or they wait until more damage is done. Now you can move on to better methods and you'll most likely be better off. Jack up your investments and your savings rate and never look back.

User avatar
1789
Posts: 634
Joined: Fri Aug 16, 2019 3:31 pm
Location: OR

Re: Early mistakes made. Cut my losses?

Post by 1789 » Tue Jan 14, 2020 10:29 pm

I would get rid of all of them when the market opens and buy US TSM (FZROX) instead.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

User avatar
Taylor Larimore
Advisory Board
Posts: 28959
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Re: Early mistakes made. Cut my losses?

Post by Taylor Larimore » Tue Jan 14, 2020 10:29 pm

slapstix wrote:
Tue Jan 14, 2020 10:15 pm
Hello BH crew,

First off thank you in advance for taking a minute to give advice.

I opened a Roth IRA with Fidelity about 8 years ago when the "light bulb" turned on and I realized that I'll need more than a few hundred thousand to retire comfortably (it was also before finding the resources here).

Not knowing anything about stocks I bought companies and industries that I thought were interesting, or I tried to buy a company when it took a big hit to its stock price.

Should I just sell everything and move it all to FZROX? Or, should I leave everything alone for years assuming that one day the Total Gain/Loss will be back in the green? I'm literally investing the minimum each quarter to keep the account open, and not wanting to invest in individual companies, and need to get rid of these bad decisions:

CORE: 10%
FENY: 41%
GE: 9%
JNJ: 8%
MSLP: 1%
SLM: 31%

My Total Gain/Loss is -22.72%, with the only security in the green being JNJ.

Thank you!
slapstix:

I have little doubt that you should sell all your individual stocks now while you have a total loss of -22.72%. Your losses will offset your gain in JNJ so that you will have no tax on the sale of your stocks.

It will give you incentive to sell your individual stocks by reading THIS.

FZROX is a much superior replacement.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Attempting to build an investment program around a handful of individual securities is, for all but the most exceptional investors, a fool's errand."
"Simplicity is the master key to financial success." -- Jack Bogle

Katietsu
Posts: 2759
Joined: Sun Sep 22, 2013 1:48 am

Re: Early mistakes made. Cut my losses?

Post by Katietsu » Tue Jan 14, 2020 10:39 pm

slapstix wrote:
Tue Jan 14, 2020 10:15 pm
Hello BH crew,

I'm literally investing the minimum each quarter to keep the account open, and not wanting to invest in individual companies, and need to get rid of these bad decisions:
Curious what you mean by “investing the minimum each quarter to keep the account open”? I did not think DIY at any major brokerages still had minimums?

Ferdinand2014
Posts: 1023
Joined: Mon Dec 17, 2018 6:49 pm

Re: Early mistakes made. Cut my losses?

Post by Ferdinand2014 » Tue Jan 14, 2020 11:24 pm

slapstix wrote:
Tue Jan 14, 2020 10:15 pm
Hello BH crew,

First off thank you in advance for taking a minute to give advice.

I opened a Roth IRA with Fidelity about 8 years ago when the "light bulb" turned on and I realized that I'll need more than a few hundred thousand to retire comfortably (it was also before finding the resources here).

Not knowing anything about stocks I bought companies and industries that I thought were interesting, or I tried to buy a company when it took a big hit to its stock price.

Should I just sell everything and move it all to FZROX? Or, should I leave everything alone for years assuming that one day the Total Gain/Loss will be back in the green? I'm literally investing the minimum each quarter to keep the account open, and not wanting to invest in individual companies, and need to get rid of these bad decisions:

CORE: 10%
FENY: 41%
GE: 9%
JNJ: 8%
MSLP: 1%
SLM: 31%

My Total Gain/Loss is -22.72%, with the only security in the green being JNJ.

Thank you!
Yes, FZROX or FXAIX or FSKAX
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

Ferdinand2014
Posts: 1023
Joined: Mon Dec 17, 2018 6:49 pm

Re: Early mistakes made. Cut my losses?

Post by Ferdinand2014 » Tue Jan 14, 2020 11:26 pm

Katietsu wrote:
Tue Jan 14, 2020 10:39 pm
slapstix wrote:
Tue Jan 14, 2020 10:15 pm
Hello BH crew,

I'm literally investing the minimum each quarter to keep the account open, and not wanting to invest in individual companies, and need to get rid of these bad decisions:
Curious what you mean by “investing the minimum each quarter to keep the account open”? I did not think DIY at any major brokerages still had minimums?
Fidelity does not have any minimums or account maintenance fees.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

rossington
Posts: 408
Joined: Fri Jun 07, 2019 2:00 am
Location: Florida

Re: Early mistakes made. Cut my losses?

Post by rossington » Wed Jan 15, 2020 3:51 am

Keep JNJ forever.
Everything else to FZROX.
"Success is going from failure to failure without loss of enthusiasm." Winston Churchill.

User avatar
dogagility
Posts: 774
Joined: Fri Feb 24, 2017 6:41 am

Re: Early mistakes made. Cut my losses?

Post by dogagility » Wed Jan 15, 2020 4:12 am

Without any tax consequence since this is an IRA, I agree to sell everything (including JNJ) and purchase FZROX.
"The stock market is a device for transferring money from the impatient to the patient" -- Warren Buffett

itmaybejj
Posts: 15
Joined: Thu Dec 19, 2019 8:01 am

Re: Early mistakes made. Cut my losses?

Post by itmaybejj » Wed Jan 15, 2020 6:42 am

And don't feel bad. Nearly every investing decision I made in my first years was not great. That's normal, and it is GREAT to make those mistakes early, when there's not a lot of value at risk.

snailderby
Posts: 693
Joined: Thu Jul 26, 2018 11:30 am

Re: Early mistakes made. Cut my losses?

Post by snailderby » Wed Jan 15, 2020 8:56 am

123 wrote:
Tue Jan 14, 2020 10:21 pm
FZROX will giver you more diversification and provide market returns. Since it's a IRA you can switch without tax consequence. Do it. Relax.
+1

User avatar
Sandtrap
Posts: 8701
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Early mistakes made. Cut my losses?

Post by Sandtrap » Wed Jan 15, 2020 9:09 am

After moving your funds. . . consider posting for a portfolio review for comprehensive suggestions on a long term strategy for retirement finances.
Here's the format:
Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212

Congratulations on making a good move.
j :happy
Wiki Bogleheads Wiki: Everything You Need to Know

tibbitts
Posts: 9412
Joined: Tue Feb 27, 2007 6:50 pm

Re: Early mistakes made. Cut my losses?

Post by tibbitts » Wed Jan 15, 2020 9:20 am

rossington wrote:
Wed Jan 15, 2020 3:51 am
Keep JNJ forever.
Everything else to FZROX.
I would not keep JNJ, just because it complicates your investments. I do make one exception for one stock because of the shareholder benefits, but even for that (2-4% annually) I'm not sure it's worth it. If you get some benefit from JNJ then you'd have to decide if that's worth it to you.

retired@50
Posts: 1053
Joined: Tue Oct 01, 2019 2:36 pm

Re: Early mistakes made. Cut my losses?

Post by retired@50 » Wed Jan 15, 2020 10:22 am

tibbitts wrote:
Wed Jan 15, 2020 9:20 am
rossington wrote:
Wed Jan 15, 2020 3:51 am
Keep JNJ forever.
Everything else to FZROX.
I would not keep JNJ, just because it complicates your investments. I do make one exception for one stock because of the shareholder benefits, but even for that (2-4% annually) I'm not sure it's worth it. If you get some benefit from JNJ then you'd have to decide if that's worth it to you.
I would not keep JNJ either. Between the talcum powder lawsuits, pharmaceuticals, etc. too much risk to hold individually. Buy the WHOLE market.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

User avatar
ruralavalon
Posts: 17135
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Early mistakes made. Cut my losses?

Post by ruralavalon » Wed Jan 15, 2020 11:57 am

slapstix wrote:
Tue Jan 14, 2020 10:15 pm
Hello BH crew,

First off thank you in advance for taking a minute to give advice.

I opened a Roth IRA with Fidelity about 8 years ago when the "light bulb" turned on and I realized that I'll need more than a few hundred thousand to retire comfortably (it was also before finding the resources here).

Not knowing anything about stocks I bought companies and industries that I thought were interesting, or I tried to buy a company when it took a big hit to its stock price.

Should I just sell everything and move it all to FZROX? Or, should I leave everything alone for years assuming that one day the Total Gain/Loss will be back in the green? I'm literally investing the minimum each quarter to keep the account open, and not wanting to invest in individual companies, and need to get rid of these bad decisions:

CORE: 10%
FENY: 41%
GE: 9%
JNJ: 8%
MSLP: 1%
SLM: 31%

My Total Gain/Loss is -22.72%, with the only security in the green being JNJ.

Thank you!
Yes, just go ahead and sell everything and buy Fidelity ZERO Total Market Index (FZROX). Also restart contributions to your IRA, at the maximum permitted for your age.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Post Reply