401k Rollover....Money Market or FSITX

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poolshark333
Posts: 3
Joined: Sun Jan 02, 2011 7:32 am

401k Rollover....Money Market or FSITX

Post by poolshark333 »

To consolidate, I (60 years old) just rolled over funds from my company's 401k into my Fidelity 401k (where I can invest in my desired index funds like FSITX, FSTVX, FSGDX). After funds settle in a day or so, my plan is to just buy the bond fund (FSITX) to keep with my desired overall AA (across all my investment accounts). The amount that I rolled over is about 10% of my overall Investments (so a sizable chuck of money). My other fleeting thought is just to park the funds in a Money Market Cash fund FZDXX 1.06% 7-day yield since the stock market is near an all time high and interest rates are rising.

My past philosophy has been never to time the market (or in this case, with rising interest rates, the value of the bond fund may go down) but with this significant rollover, I did have this fleeting thought (jitters?? I did re-read the seminal jitter post by nisiprius) of parking this rollover in cash (FZDXX) vs immediately getting back to my overall desired AA (by just investing the rollover in FSITX). Or should I just do dollar cost averaging (into FSITX) over say a year. As I stated earlier, my original plan last week when I started all this was just to immediately invest in the FSITX bond fund.
Thoughts?
PFInterest
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Joined: Sun Jan 08, 2017 12:25 pm

Re: 401k Rollover....Money Market or FSITX

Post by PFInterest »

what was the money coming from? if it was already in the market....and other than the move you were not planning to move it to cash....why would the move make you move it to cash....... :confused :confused :confused
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Tyler Aspect
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Re: 401k Rollover....Money Market or FSITX

Post by Tyler Aspect »

The interest rate going up statement I think it mostly applies to short term interest rate. There are the intermediate term interest rate and the long term interest rate all could go in different directions. With FSITX you want to see rates going up, because as a long term investor having coupons with high rates wins out over the initial net asset value decline after a holding period of 6 years.

FSITX share price declining is goodness! :shock:
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