Rolling Over 401k from old Company to 401k of New Company in a Bear Virus Market

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
beatrice11
Posts: 2
Joined: Tue Mar 24, 2020 4:51 pm

Rolling Over 401k from old Company to 401k of New Company in a Bear Virus Market

Post by beatrice11 » Tue Mar 24, 2020 4:59 pm

I started a new job in the middle of this virus mess and I'm too new at this to know what to do. I have a Merrill Lynch managed 401k account and can roll it over to Vanguard in my new company. Is there any reason why I would not want to do this at this particular time? Any direction is really and truly appreciated.

User avatar
galawdawg
Posts: 390
Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

Re: Rolling Over 401k from old Company to 401k of New Company in a Bear Virus Market

Post by galawdawg » Tue Mar 24, 2020 5:23 pm

Assuming that Merrill Lynch will have to liquidate your holdings and send the funds to Vanguard for you to then reinvest, the concern IMHO isn't the bear market, it is the volatility of the market. If Merrill sells during a significant down day, you run the risk that while your funds are out of the market, the market rises and you have to buy back in at a higher price. The daily swings are significant right now.

You may want to wait, if possible, for more stability in the market to minimize the risk that the rollover will result in an unintended "sell low, buy high" situation.

Topic Author
beatrice11
Posts: 2
Joined: Tue Mar 24, 2020 4:51 pm

Re: Rolling Over 401k from old Company to 401k of New Company in a Bear Virus Market

Post by beatrice11 » Wed Mar 25, 2020 7:27 am

REALLY grateful - thank you so much

User avatar
Watty
Posts: 18721
Joined: Wed Oct 10, 2007 3:55 pm

Re: Rolling Over 401k from old Company to 401k of New Company in a Bear Virus Market

Post by Watty » Wed Mar 25, 2020 7:32 am

I would wait until things calm down just because the companies may have staff that are out sick or working from home. Or you could get sick in the middle of the transfer. There is no sense in giving Murphy's Law a chance to cause problems.

Post Reply