I suppose my past gains and pure stubbornness has kept me in lots of retail reits longer than the party lasted. Kingran and others are proving to be right in their views. The other mistake I often make is letting tax consequences control the process. As I still have quite a large gain in roic in a taxable account, for example, I keep thinking the downward slope will stop eventually, the dividends are decent and I really don't have a better idea for the proceeds of a sale at the moment. So, here I sit, thinking of at least selling a portion of two or three of my holdings.
The other mistake I often make is letting tax consequences control the process. I hear this argument from many investors and my answer is simple. Up to $480K gains are taxed at 15% rate. First of all, if your gains are more than that, stop complaining, be thankful, say a prayer or do something good, because you are blessed. Separately, You would be better off paying 15% tax than taking 50% (it doesn't have to be 50%, it just rhymes)haircut.None of us stopped going to work because we are paying taxes on our income. I am not saying you should not plan taxes, but find the balance. Optimization on one should not lead to overall sub-optimal situation, this is true for software design and true for life.Good luck.
I was taught investing by an uncle who was a CPA. For big gains where he wanted or needed to sell he had two methods of dealing with it. 1. What he called peeling the onion, where you sold off a small to medium portion of a big holding with a big gain each year never paying too much in taxes.2. Just pay the @#1& tax. Different situations like tax rates, company fundamentals, and your personal situation may lean towards one or the other method.Since Bush II, tax rates have made Method #2 more palatable. I have had both methods provide great and poor results.
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