I took the plunge and registered after lurking for a looong time. I've spent the last 2 years cleaning up my portfolio, in no small measure due to this forum. Sycamore, White Oak Growth, etc - I bought high, rose to the sun, and like icarus, took the big hurt. Soon, I'll actually post my portfolio for some help.
So my question.... I'm about 8 years to retirement. I have tax advantaged space for bonds, but still have about 5% of my total portfolio in Vanguard intermediate term tax exempt in a taxable account. I want to sell C fund in TSP, and buy/exchange it for G and F. Then sell intermediate term tax exempt and replace it with TSM instead of the same amount of C fund. I know all the timing stuff, and of course would never do that. I keep thinking I should wait for a slight pull back before making what is really an even exchange of the above assets between taxable and advantaged space. I say this bc for the long term, it just seems like buying this amount of TSM now, would reduce my potential upside.
Does the timing of an even switch like the above really matter? If not, I'm not clear as to why it does not matter, so clarification would help me.
My thanks
analysis paralysis
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Re: analysis paralysis
Pete, are you awake now? Welcome!kpete wrote:So my question.... I'm about 8 years to retirement. I have tax advantaged space for bonds, but still have about 5% of my total portfolio in Vanguard intermediate term tax exempt in a taxable account. I want to sell C fund in TSP, and buy/exchange it for G and F. Then sell intermediate term tax exempt and replace it with TSM instead of the same amount of C fund. I know all the timing stuff, and of course would never do that. I keep thinking I should wait for a slight pull back before making what is really an even exchange of the above assets between taxable and advantaged space. I say this bc for the long term, it just seems like buying this amount of TSM now, would reduce my potential upside.
You own C Fund.
Unless 20% in Mid/Small caps fully blow-up while 80% S&P 500 takes-off, what "pull back" in TSM is going to be significantly beneficial that doesn't hurt the C Fund? Is that even something to remotely consider? Can anyone project such event? Look, do the exchange and move on with your savings program according to your asset allocation.
Landy |
Be yourself, everyone else is already taken -- Oscar Wilde