Quick advice - 401(k) xfer via check - avoiding loss due to mkt fluctuation

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olliema
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Joined: Sun Mar 11, 2018 10:34 pm

Quick advice - 401(k) xfer via check - avoiding loss due to mkt fluctuation

Post by olliema » Fri Nov 02, 2018 10:43 am

I have 95K in SP500 in old employer 401(k) to be rolled into new employer 401(k)
Process will likely take 1-2 wks; I request check, they mail to me, I mail to the new employer, they process, etc.
In this market anything can happen in 1-2 weeks, so I want to preserve my AA while the transfer occurs.

Challenge me if there's a better solution than this, or if you concur this works:

1. (today) Move the 95K from SP500 to cash/stable
2. (today) Move 95K of other investments I have in cash/stable to SP500
3. (post transfer) reset / adjust my AA as desired

Thanks in advance

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ResearchMed
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Joined: Fri Dec 26, 2008 11:25 pm

Re: Quick advice - 401(k) xfer via check - avoiding loss due to mkt fluctuation

Post by ResearchMed » Fri Nov 02, 2018 10:49 am

olliema wrote:
Fri Nov 02, 2018 10:43 am
I have 95K in SP500 in old employer 401(k) to be rolled into new employer 401(k)
Process will likely take 1-2 wks; I request check, they mail to me, I mail to the new employer, they process, etc.
In this market anything can happen in 1-2 weeks, so I want to preserve my AA while the transfer occurs.

Challenge me if there's a better solution than this, or if you concur this works:

1. (today) Move the 95K from SP500 to cash/stable
2. (today) Move 95K of other investments I have in cash/stable to SP500
3. (post transfer) reset / adjust my AA as desired

Thanks in advance
This makes very good sense, as long as you are not working with money in taxable accounts, which you don't seem to be doing.

Your "asset allocation" at the end of each day would not be changing throughout the entire transfer.

Just make sure there are no transaction fees (or that there aren't many and they are *very* small).

RM
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prudent
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Joined: Fri May 20, 2011 2:50 pm

Re: Quick advice - 401(k) xfer via check - avoiding loss due to mkt fluctuation

Post by prudent » Fri Nov 02, 2018 10:58 am

Might want to check if your Stable Income fund has timing restrictions on moving money in/out. Ours does.

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