I'm selling funds at a loss if I can find equal or better funds in the same fund categories to replace them with. I'm doing this to claim the losses against my 2008 taxes. This should increase the size of my tax return. I plan to take the extra cash and invest it, assuming the markt is still beaten down when I get my refund.
Back in March of 2007, Managers Bond MGFIX looked great. Other bond funds have held up well, but the managers of this fund have taken failure to a new level. It has lost over 21% this year and its expenses have actually gone up. I'll take TGMNX TCW Total Return Bond which has posted a slight gain year to date.
Another fund that looked good in March of 2007 was SSMEX, SSGA Emerging Markets. Most Emerging Market funds looked good then, but this one rose above the field. LZOEX has lost over 50% this year, but that is not as much as SSMEX. LZOEX has a better long term record, but slightly higher expenses, which bums me out a little. I'm sitting on too big a loss to not take the tax write off here so I'm selling SSMEX and buying LZOEX.
In January of 2007, AAGPX American Beacon Large Cap Value Planahead looked like a safe bet. Value funds have taken a serious beating, but many funds have held up far better than this one. I'm buying AMANX Amana Trust Income.
I bought JASCX James Small Cap well before I put together the WylieMoney portfolios. Despite that I'm sitting on a loss and there are better options. I'm buying RSEFX Royce Special Equity SVC.
Bond- Intermediate Term
Selling: MGFIX Managers Bond
Buying: TGMNX TCW Total Return Bond
Foreign- Emerging Markets
Selling: SSMEX SSGA Emerging Markets
Buying: LZOEX Lazard Emerging Markets Equity Open
Domestic- Large Cap Value
Selling: AAGPX American Beacon Large Cap Value Planahead
Buying: AMANX Amana Trust Income
Domestic- Small Cap Value
Selling: JASCX James Small Cap
Buying: RSEFX Royce Special Equity SVC