Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Selling Fund with Tax Loss
Old 01-19-2016, 05:47 PM   #1
MBAustin's Avatar
Join Date: Jul 2010
Posts: 5,507
Selling Fund with Tax Loss

I'm 99% sure I know the correct answer to this question, but need a little help with the emotional component of the decision.

In 1985, I was finally earning enough that I had money to invest beyond maxing out my 401K. My dad helped me pick out a couple of mutual funds. One of them, Acorn (ACRNX), I decided I liked a lot and continued investing in it until 2000, when I realized that putting more $$ into an actively managed fund that throws off significant distributions creates all kinds of tax hassles. So I started taking all of the distributions in cash and investing them more tax-efficiently in 2007 (later using them to live on after we retired).

Between a huge distribution in December (30+%) and the market downturn this month, the current value is slightly less than my cost basis (I have a mega-spreadsheet that includes all the reinvested distributions over the years). The tax loss isn't huge, but would give me some space for more Roth conversion this year.

Intellectually, I know I should sell it (it's 6-figures so not a trivial amount). But after 30 years, and excellent returns, it makes me sad to think about not continuing to have this investment that my late father helped me pick.

Interested to hear how others have handled such a situation.

"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-19-2016, 05:57 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 9,759
In 2000, I cleared out all my legacy investments and I was glad that I did. Then I did it again in 2009. Also glad I did it again.

LOL! is offline   Reply With Quote
Old 01-19-2016, 06:08 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
Join Date: May 2008
Location: Following the nice weather
Posts: 7,255
Sell most of it, and keep a little for old time's sake.
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 01-19-2016, 07:23 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,979
Yes, it's been tough. I sold my higher cost basis shares last year to lower the distribution paid out in Nov 2015.

Mine remaining stake is also now at a loss, after the drubbing small cap stocks have taken.

I'm going to sell it sometime before June when their next cap gains distribution is paid out. Due to the large redemptions in the fund next June's payout will likely also be large.

This has been a tough one - smaller active fund families - when companies get sold and management changes. Redemptions and reorgs. After 20, 30 years - things change.
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 01-19-2016, 07:55 PM   #5
Moderator Emeritus
braumeister's Avatar
Join Date: Feb 2010
Location: Flyover country
Posts: 13,521
ACRNX has a relatively high ER of 0.79%, a new manager as of this month, and only mediocre performance over time.

Go ahead and sell it.
braumeister is offline   Reply With Quote
Old 01-19-2016, 08:04 PM   #6
Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,342
My father never helped me pick an investment. I'm not sure he ever invested. So can't address that part.

I would sell it, take the loss, and invest is as you see fit.

bingybear is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll-Do You Have Capital Loss Carryforwards, Or Investments In A Loss Status? haha FIRE and Money 40 04-16-2011 02:03 AM
Tax loss harvest bond fund(s)? Grep FIRE and Money 4 10-25-2008 02:07 PM
Harvest Tax Loss by Fund Switch? charlie FIRE and Money 24 10-22-2008 10:58 AM
Anyone considering tax-loss selling? Nords FIRE and Money 29 09-30-2008 02:46 PM
Does anyone employ ETF tax loss selling? Olav23 FIRE and Money 6 01-07-2007 04:18 PM

» Quick Links

All times are GMT -6. The time now is 06:38 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.