I've posted before about Separately Managed Accounts (in our case, with Fidelity). We do not currently have one.
At the time, I didn't have any losses in my individual brokerage account for that to make sense even bothering with. Today is a different story.
I'm looking at wanting to get rid of some megacorp stock anyway. We're way overloaded in it and while it's down, it's also likely to be a very slow climb up. Between having too much money in it proportionately, and thinking we'd be better off even in diversifying, I want to pose the question of SMAs again.
I just got off the phone with my local FIDO rep. She has always been very helpful, not at all pushy and I feel completely comfortable telling her I don't or do want to do something. She pointed out today that, in this market with everything upside down that our decision to hang on and do nothing is an option that makes perfect sense. I told her I wanted to be smarter with the overweighted company stock we have and take the losses and put it to work somewhere else. She said she thought that was a good idea and that we could do it ourselves or we could consider the SMA again if we didn't want to do it ourselves.
Here's my quandry. I'm not sure what I'd invest that money in once I sell the stock. I could put it into VTI (my other largest holding in my individual brokerage account), use it to lower my AA (which was around 71% equities last I could get a reading in the analysis section of my FIDO report) and sit on cash OR buy into something safe like CDs or bonds though CDs at the moment sound like a waste of good cash potential.
DH is delaying his retirement just for a bit so we have a psychological safety net. We also have about 3 - 4 years of cash so there's no fire there.
I'm a little gun shy but I also want to unload some of this stock whether we set up an SMA and let someone manage it or whether we do something with it ourselves.
If we were wanting to lower our equities portion of our AA, this is the time. What to invest in? Or, if we were wanting to buy into the depressed stock prices, it would also be nice to have that extra cash to invest and so again, what might you invest in - index funds or something else?
I will add, that is was Old Shooter's calming influence that helped me walk away from things for a few days (though not years...) to be able to come back and look at this again. I suppose Plan C is to do nothing; that's viable too.
I imagine DH might say "just do the SMA." I've just always been less geared that way. That said, it sure is easier to blame someone else than take responsibility for my own well-intended work
I'm just not sure if it's that I don't have the interest in doing things like I used to, or if this market has shaken my confidence.