I Am OUT of the Market . . . and Hating It

By Carlos Portocarrero

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So I’m finally transferring my Roth IRA from Scottrade to Vanguard after finding out that you can have two Roths at two different brokerage houses. The reason I needed to know that before making the switch is because I want to hold on to my one B share of Berkshire Hathaway (BRK.B) without having to open a Brokerage Account with Vanguard, which is too expensive. Now I’ll be able to open a Roth with Vanguard that will contain only cheap index funds (the cheapest, as far as I know) that track exactly what I want. The best of both worlds!

But anyway, that means right now I liquidated my funds and am waiting for them to clear so I can transfer them to Vanguard. Yesterday was the first day I wasn’t invested in the market in I don’t know how long.

Why am I stressed out?

Because being out of the market when it has one of its best days can cost you a lot of money. Besides, being a long-term investor, I don’t like that I just took my money out amidst all this talk of recession, slowdown, and so on. I proud myself on not getting skiddish and bailing out.

But that’s what I’ve done. It just so happens I’m doing it now because I just found out about the whole two Roths deal.

In the end it’s definitely worth it because I will be owning cheaper funds (half as cheap as what I’m paying now) and I’ll be exposed to exactly the markets I want to be exposed to with a great deal of diversification.

It may suck right now, but after I move everything over to Vanguard I’ll be all set until I retire. No more bouncing around.

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