JustinR wrote:I'm planning on adding new money this weekend (and perhaps rebalance in my taxable and retirement accounts), which happens to be right before the new year.
Are there any reasons not to do any of the following things now, or rather...
would it be better to wait to do any of these things NEXT YEAR?
1) Buy in taxable
2) Buy or sell in 401k
3) Buy or sell in Roth IRA
How much money are we talking about? If not a lot (say less than 1% of your total portfolio), I wouldn't worry about it.
A possible reason to do this before Friday is that in one year (in 2013) you will possibly have the option to sell at a long-term gain. If you wait until Dec 31st (Monday), then wouldn't you have to wait until 2014 to sell at a long-term? This is a bit of long-range planning. As for selling this year in taxable, only you know your tax situation.
Otherwise, it probably makes no difference whatsoever. Except ...
Because of things [not] happening in Washington, DC, you could be accused of market-timing. If that bothers you, you might want to wait. OTOH, if you wait, you could be accused of market-timing. If that bothers you, you might want to go ahead this week.
For me, I like to purchase on a RBD and market time, so if there is an RBD whether in 2012 or 2013, I will time my purchases for that day. I am confident that my fellow investors will deliver an RBD very soon.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.