All holdings sold when Roth moved, now what?

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InvestingIka
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Joined: Mon Nov 12, 2018 9:38 pm

All holdings sold when Roth moved, now what?

Post by InvestingIka » Mon Nov 12, 2018 10:17 pm

All holdings were sold and Roth moved to new company. Since the market is down should I invest all or do some sort of ladder with treasuries or something? Amount is around $25,000 cash and roughly 20 years to retirement. What is a good plan for investing this lump sum? Thanks for any help.

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Watty
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Joined: Wed Oct 10, 2007 3:55 pm

Re: All holdings sold when Roth moved, now what?

Post by Watty » Mon Nov 12, 2018 10:47 pm

If you were happy with what they were invested in before then put them into similar mutual funds at the new company. You may have gotten lucky and earned a few extra percent by being out of the market at the right time.

There isn't enough information to give other specific suggestions since what is right depends on the rest of your situation. You can get better responses if you post more of your information in something like this suggested format, but it does not need to follow it exactly.

viewtopic.php?f=1&t=6212

mhalley
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Joined: Tue Nov 20, 2007 6:02 am

Re: All holdings sold when Roth moved, now what?

Post by mhalley » Tue Nov 13, 2018 1:18 am

It’s scary when the market does what it did today. If it scares you too much, perhaps you need to revisit your asset allocation. Statistically, putting money in the market in a lump sum is better 2/3 of the time. Multiple posts here on not timing the market.

delamer
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Joined: Tue Feb 08, 2011 6:13 pm

Re: All holdings sold when Roth moved, now what?

Post by delamer » Tue Nov 13, 2018 9:49 am

Watty wrote:
Mon Nov 12, 2018 10:47 pm
If you were happy with what they were invested in before then put them into similar mutual funds at the new company. You may have gotten lucky and earned a few extra percent by being out of the market at the right time.

There isn't enough information to give other specific suggestions since what is right depends on the rest of your situation. You can get better responses if you post more of your information in something like this suggested format, but it does not need to follow it exactly.

viewtopic.php?f=1&t=6212
I agree with all of the above.

Also, when the stock market is down that is the perfect time to buy stocks.

Buy low, sell high.

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Phineas J. Whoopee
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Joined: Sun Dec 18, 2011 6:18 pm

Re: All holdings sold when Roth moved, now what?

Post by Phineas J. Whoopee » Tue Nov 13, 2018 12:51 pm

If you did not move your Roth account would you have gone all to cash then worried about when to buy back in? The only reason you're in cash is the move.

I am not planning to move assets between custodians. Would it be advisable for me to sell everything and go to cash, then worry about when to buy back in?

You were fully invested before. You temporarily went to cash to facilitate a move. It's complete. There's no reason to wait to become fully invested again.

PJW

InvestingIka
Posts: 3
Joined: Mon Nov 12, 2018 9:38 pm

Re: All holdings sold when Roth moved, now what?

Post by InvestingIka » Tue Nov 13, 2018 9:36 pm

Watty wrote:
Mon Nov 12, 2018 10:47 pm
If you were happy with what they were invested in before then put them into similar mutual funds at the new company. You may have gotten lucky and earned a few extra percent by being out of the market at the right time.
not an option
Watty wrote:
Mon Nov 12, 2018 10:47 pm
There isn't enough information to give other specific suggestions since what is right depends on the rest of your situation. You can get better responses if you post more of your information in something like this suggested format, but it does not need to follow it exactly.

viewtopic.php?f=1&t=6212
not comfortable offering up that much information for the question I posted.

I admit my post is confusing, was tired and just wanted to pull the trigger on my first post so I will try to clarify.
With a lump sum in a Roth IRA and a down market that has been volatile and may continue and go down more what option is better:
1. Invest all cash now into stocks
2. Break it into 3 or 4 chunks for a type of dollar cost averaging over the next weeks
3. Invest a percentage and ladder the rest with non-stocks
4. Something else

I have enough bonds in other accounts so all will be stocks eventually and I usually lean towards 2 but this environment is wonky.
Did I clarify?
Thanks for the response.

InvestingIka
Posts: 3
Joined: Mon Nov 12, 2018 9:38 pm

Re: All holdings sold when Roth moved, now what?

Post by InvestingIka » Tue Nov 13, 2018 9:40 pm

mhalley wrote:
Tue Nov 13, 2018 1:18 am
It’s scary when the market does what it did today. If it scares you too much, perhaps you need to revisit your asset allocation. Statistically, putting money in the market in a lump sum is better 2/3 of the time. Multiple posts here on not timing the market.
Not scary just wonky. Would you invest lump sum now, break it up to invest over a period of time, something else?
Thanks for the response.

Silk McCue
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Joined: Thu Feb 25, 2016 7:11 pm

Re: All holdings sold when Roth moved, now what?

Post by Silk McCue » Tue Nov 13, 2018 10:30 pm

Lots of threads like this lately. Solid advice already given in this thread including scenarios mentioned by Phineas to get you thinking and mhalley pointing out historical analysis 2/3 of time lump sum superior. No one can tell you what to do or what will happen.

For me with $25k invested for 20 years I would invest now according to my established asset allocation and put the decision behind me and just keep investing.


Cheers

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