The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: sdt1890 on August 23, 2017, 02:35:28 PM
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As you might have seen in my other thread, I have leveraged ETFs my former "financial advisor" put me in, the bulk is TZA with some additional SDS ... they were bought multiple times at various price points over multiple YEARS (my blood boils as I type this), (will have to look up exact prices, but most appear to be in the $50-$75 price range). These "investments"/lottery tickets are now worth $17.80 per share as of today (5+ figure loss).
I don't even know what the hell to do with these? Bitter and/or pissed would be an understatement; that said, any thoughts MMM community?
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Stop using leveraged ETFs.
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Sell them and use the losses to offset other capital gains???
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Sorry, but could you explain what kind oft ETFs these are? Leveraged, OK. But what is the base investment?
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Leveraged shorts like TZA and SDS are enormously toxic. You need to stop the bleeding. You can tax loss harvest 3 thousand a year above and beyond your offsets to capital gains. But you can currently carry the long term capital losses forward indefinitely. Keep track of your losses and use them to offset capital gains when you get to withdrawal phase.
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Holy crap! Not only did your financial advisor get you into leveraged ETFs, but he got you into short leveraged ETFs....in the middle of a bull market! This is ridiculous!
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If You Wouldn’t Buy it, You Should Probably Sell it (http://www.mrmoneymustache.com/2015/07/02/if-you-wouldnt-buy-it-you-should-probably-sell-it/)
Sell them, and buy some index funds. Learn from your mistakes and move on. It sucks, but what else can you do?
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Holy crap! Not only did your financial advisor get you into leveraged ETFs, but he got you into short leveraged ETFs....in the middle of a bull market! This is ridiculous!
Don't think it is possible he could have done any more harm in this time period... he's graduated to telling/pitching/preaching to his clients about the coming turmoil of the stock market and steering them (many baby boomers) into annuities, them none the wiser while he pads his pockets at their expense ... makes me sick.
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I honestly don't know if there is anything you can do, but given the amount of money I would double check with an attorney. It may be a lost cause, but I would explore that option.
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“If your advisor thinks he can pick winning stocks, choose winning actively managed mutual funds, or time the market -- steer clear!” -- Whitecoat Investor
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Holy crap! Not only did your financial advisor get you into leveraged ETFs, but he got you into short leveraged ETFs....in the middle of a bull market! This is ridiculous!
Seriously...he should have been buying UPRO if he was going to be in the leveraged ETF game. Just look at those returns!