Financial Samurai - Forums

General Investing => Stocks And Index Funds => Topic started by: surpass on August 22, 2020, 10:30:06 AM

Title: Hold them or fold them?
Post by: surpass on August 22, 2020, 10:30:06 AM
I've been investing in REITS' for a couple of years.  I own VNQ in my ROTH IRA and I'm down about 10% with all the ups and downs this year.  The fund pays almost a 4% dividend and if I factor in taxes its close to 5.5%. 

My hope was to get to the break even point and sell as I hate having a capital loss that I can't claim on my taxes.  With the current commercial RE environment, I'm also not sure when I'd get to that break even point...

I'm I better office waiting and earn the dividend in the meantime... or sell put it in an S&P 500 fund to recoup my loss faster?  What do you think about REITS right now and handling losses in a tax sheltered account?  Thanks
Title: Re: Hold them or fold them?
Post by: titlewealth on August 25, 2020, 08:27:57 PM
I think the logical answer which is not always the easiest to follow is when do you need this money by? If you are not retiring for another 10+ years and don't need the money now, most would say just ride it out and forget about it. You may see more dips but in the long term it will go back up. If you need the money in the short them, then you should consider selling and cashing out before things crash further.

No one knows if they will or not. But we do know there are big uncertainties right now between COVID and the election.
Title: Re: Hold them or fold them?
Post by: wzhang18 on September 22, 2020, 05:33:54 PM
I agree. It depends on if you need the money. Real estate sector tends to do well at early stage of business cycle (you can check out my blog post about this very topic for detailed comparison among sectors:

So, if you can wait, then wait, then hold.

Alternatively, you could switch the investment with others that have more growth potentials. My website ranks undervalued stocks in every sector biweekly. Welcome to check it out.