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


By Carlos Portocarrero

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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