Selling individual stocks to invest in Index Fund

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Topic Author
mrgoodnotgood
Posts: 4
Joined: Sat Jul 30, 2022 9:44 am

Selling individual stocks to invest in Index Fund

Post by mrgoodnotgood »

I'm new to investing and even newer to the Boglehead mindset -- which I've quickly grown to admire. Before bumping into you fine folk I made a few "let's give this a try" investments. One that I really regret was putting $3,000 on Ford Motor Co. which almost immediately nosedived after my purchase. Now that it's getting back closer to the price I purchased it at I'd love to cut my losses and move this money into VTI. What's the best way to do this? It's been less than a year since I purchased Ford for $17.40/share, it's now $15.37.

Many thank yous!!
sycamore
Posts: 4511
Joined: Tue May 08, 2018 12:06 pm

Re: Selling individual stocks to invest in Index Fund

Post by sycamore »

mrgoodnotgood wrote: Thu Aug 04, 2022 6:11 pm I'm new to investing and even newer to the Boglehead mindset -- which I've quickly grown to admire. Before bumping into you fine folk I made a few "let's give this a try" investments. One that I really regret was putting $3,000 on Ford Motor Co. which almost immediately nosedived after my purchase. Now that it's getting back closer to the price I purchased it at I'd love to cut my losses and move this money into VTI. What's the best way to do this? It's been less than a year since I purchased Ford for $17.40/share, it's now $15.37.

Many thank yous!!
Welcome to the forum!

I would do what you would love to do:
1. Sell your Ford stock right away. No need to wait for it to get back to even. On your 2022 taxes you can use the loss to offset any taxable capital gain you might have, or up to $3000 in ordinary income.

2. After the sell trade settled, buy shares of VTI with the proceeds. Some brokerages might let you buy prior to settlement of the Ford sale -- they'll know that you have at least the proceeds of the sale to cover your VTI purchase.

Is that the kind of answer you're looking for?
Topic Author
mrgoodnotgood
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Joined: Sat Jul 30, 2022 9:44 am

Re: Selling individual stocks to invest in Index Fund

Post by mrgoodnotgood »

delete
Last edited by mrgoodnotgood on Thu Aug 04, 2022 8:03 pm, edited 1 time in total.
Topic Author
mrgoodnotgood
Posts: 4
Joined: Sat Jul 30, 2022 9:44 am

Re: Selling individual stocks to invest in Index Fund

Post by mrgoodnotgood »

Yes, definitely. Here in my investment infancy I love the "you should do this, then this, and possibly this" sort of advice. I appreciate it!
Last edited by mrgoodnotgood on Thu Aug 04, 2022 8:00 pm, edited 1 time in total.
Hyperchicken
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Re: Selling individual stocks to invest in Index Fund

Post by Hyperchicken »

Would you buy this stock today for its today's value?

If yes, then hold.

If no, then sell tomorrow when the market opens.
Topic Author
mrgoodnotgood
Posts: 4
Joined: Sat Jul 30, 2022 9:44 am

Re: Selling individual stocks to invest in Index Fund

Post by mrgoodnotgood »

No, I wouldn't. A family member gave me the tip, but I don't really have any interest in this particular investment.
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squirrel1963
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Location: Portland OR area

Re: Selling individual stocks to invest in Index Fund

Post by squirrel1963 »

mrgoodnotgood wrote: Thu Aug 04, 2022 8:01 pm No, I wouldn't. A family member gave me the tip, but I don't really have any interest in this particular investment.
Just liquidate F and immediately after buy VTI with the proceeds. They both have a 2 day settlement, so you don't need to wait for it, as long as you won't sell VTI until settlement is complete.
| LMP | safe portfolio: TIPS ladder + I-bonds + Treasuries | risky portfolio: US stocks / US REIT / International stocks |
Activesloth
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Joined: Wed Oct 20, 2021 7:03 pm

Re: Selling individual stocks to invest in Index Fund

Post by Activesloth »

It’s only a small investment. Why not wait? It was up almost 100% last year. Peaked at around $25, so my guess is you didn’t follow the price. Would have been a great time to sell. Good sales figures recently. Has some really great products. P/E of 4. Government incentives are coming. Personally, I’d wait. It’s not the worst stock to own.
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