Financial advisors help clients correct past errors by analyzing when to sell expensive, less-diversified funds for a more diversified, low-cost portfolio. Considerations include tax implications, emotional tendencies, and portfolio suitability. Advisors suggest stopping dividend reinvestments, assessing tax consequences, and evaluating deferral benefits versus higher expenses before making decisions. The process involves a mix of tax law and human behavior analysis to navigate investment mistakes effectively.

Read more at Yahoo Finance: When to Dump that Expensive Investment Fund