Avoiding Panic Selling | Helping Kids with 0% Capital Gains & Forgotten 401ks

The Hidden Cost of Panic Selling

In some ways, 2025 has been one of the more bizarre market cycles in recent history. We’ve seen remarkable swings in both directions–large drops followed by historic rebounds, and with what net difference?

It’s not hard to see that the day-to-day volatility is a direct product of our Financial Entertainment Complex (a favorite term of mine).

Looking back at this year so far, even the volatile nature of the daily stock tickers has evidently reinforced one specific principle of investing: avoiding the panic sell.

Take the chart below for example.

April 9th was the best single day of the year (so far) for the S&P 500. A strong market rebound after a volatile stretch. A big day. One you’d want to be around for if you’re invested.

If you had stepped out of the market and missed just that one day? Your return dropped from +1.1% to -7.7%. That’s a nearly 9% swing off the back of a single day.

This is a reminder.

Markets don’t move on our timeline
Recovery doesn’t wait for optimism
Emotional reactions to temporary drops can create permanent damage

If you’ve built a long-term plan, stick with it. We’re not investing for April 9th. We’re investing for the next decade—and the decades after that.

Staying invested doesn’t mean ignoring reality. It just means not letting short-term fear undo long-term progress.

Helping Your Kids and Grandkids Pay 0% Capital Gains Tax: Early-career incomes are often low, creating a window for smart tax moves. For example, Susan is 22, earns $45K, and has $10K in long-term gains on a $40K brokerage account. By selling and immediately repurchasing the investments, she may realize gains at a 0% tax rate—potentially resetting her cost basis and reducing future taxes when she sells to buy a home or launch a business.

Tax outcomes depend on individual circumstances and current tax laws, which are subject to change. Consult a tax advisor for personalized advice.

Forgotten Money: With every job change, we move on from more than just responsibilities or coworkers—sometimes we lose track of real assets. Old retirement accounts can quietly continue to grow in the background of our lives, drifting out of sight and eventually out of mind.

A 2023 report estimated that there are over 29 million idle 401(k) accounts, totaling more than $1.7 trillion. While this estimated figure has been challenged as slightly inflated, the point remains—people are losing track of their own money.

Job transitions are full of paperwork, decisions, and deadlines and in the heat of the moment, it’s easy to think that a $3,000 401(k) might not feel worth chasing down. However, 10 to 15 years of market growth, along with compound interest that is always at work, leaves you with a chunk of change sitting somewhere.

In the finance world, investing your money to grow your wealth is paramount—but sometimes, the most meaningful first step is simply making sure that what you have earned hasn’t gone anywhere.

If you’ve had multiple jobs over the years, here are a few simple steps to making sure you own what you deserve:

Check the National Registry of Unclaimed Retirement Benefits
Visit the DOL’s Retirement Savings Lost & Found
Search MissingMoney.com

The endless journey to grow wealth doesn’t always have to be about earning more, it can simply be taking advantage of what is already yours. If you need help, don’t hesitate to reach out to us.

Monday Motivation: Taking a page from the Oregon State baseball team head coach Mitch Canham might be all the motivation we need this Monday morning. “We don’t shy away from what everyone perceives as difficult things—those great opportunities—we kind of run into the storm because that’s where the best gains in life are going to be made.” Watch the clip here.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.