Thursday April 17, 2008: Mutual Funds - When to Sell

[0:00] ..." On WBZ news radio 1030 with certified financial planner -- today in our series of mutual funds were looking at the question. That everybody in their brother and their sister and their co worker. Are asking and that is"...

[0:44] ..." allocation on that investment example your daughter's finishing upper soft for -- high school. This is a good idea begin to shift some of those investments out of the stocks into cash and bond portion. She at least the first two years of tuition available so if you face a market like today. And those bills come due next August. You'll have the dollars to do that without selling things at a loss and another -- email is a mutual funds is under performing the benchmarks he talked about that this week also. You know its underperforming its benchmark in appears there may be something wrong you want to -- slack. Comparing a month to month. But certainly compare the one and three year performances if it doesn't make it kind of from the portfolio. Consider selling -- is a change of fund managers the doesn't mean sell the fund the next day but keep a close watch on the fund. Over the next several quarters call a fund company and asked for information on the new manager they're happy to send us an information on the bottom line is don't make any rash decisions here no you don't want to do that because. A new fund managers going to come in and they're going to get rid of some stocks they're going to do some selling so you want"...

[0:00]" On WBZ news radio 1030 with certified financial planner -- today in our series of mutual funds were looking at the question. That everybody in their brother and their sister and their co worker. Are asking and that is win to sell and some people the are thinking of selling now because the market is down."

[0:20]" And that's exactly the wrong reason to be selling Anthony because he will incur lots and lots of losses. You need to sell strategy as well as a -- strategy most people don't have that that's like you prepare making. You should be thinking about when to sell the we're number one reason people sell -- when you reach your goals your objectives and you need the dollars to pay for the goal. You want to issuing into that you getting close to reach your -- change your asset allocation on that investment example your daughter's finishing upper soft for -- high school. This is a good idea begin to shift some of those investments out of the stocks into cash and bond portion. She at least the first two years of tuition available so if you face a market like today. And those bills come due next August. You'll have the dollars to do that without selling things at a loss and another -- email is a mutual funds is under performing the benchmarks he talked about that this week also. You know its underperforming its benchmark in appears there may be something wrong you want to -- slack. Comparing a month to month. But certainly compare the one and three year performances if it doesn't make it kind of from the portfolio. Consider selling -- is a change of fund managers the doesn't mean sell the fund the next day but keep a close watch on the fund. Over the next several quarters call a fund company and asked for information on the new manager they're happy to send us an information on the bottom line is don't make any rash decisions here no you don't want to do that because. A new fund managers going to come in and they're going to get rid of some stocks they're going to do some selling so you want to watch it closely. You want to see if the funds style has changed in the -- looking for a small cap fund in all of a sudden. You're looking at you using morningstar your finding that he's buying you know Microsoft. Or GE will those are all large cap so the small cap fundamental philosophy may have been gone in May no longer fit into your portfolio. Consider selling if there's a legal problem -- mutual fund if they're having problems with the SEC SEC tries to protect you as an investor. The make you where the problems that only you complete your money out of the fund is failing."