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401K Roll over question
Old 11-28-2009, 07:28 PM   #1
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401K Roll over question

Hi,

I have between $50K and $100K in a former company's 401K. I'd like to roll it over into my IRA but I have a few questions. Is it better to invest all of the money right away or do some dollar cost averaging? I was thinking of investing about 30% now and putting the rest in a money market IRA. Then buying say $2000 a month in the index fund.

What do you all think?
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Old 11-28-2009, 08:42 PM   #2
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There's nothing wrong with that idea (IMO). However, if you are already fully invested in the 401K if you roll over to an IRA and buy the same or similar investments, it's pretty much a wash. No loss involved. I don't really see any reason not to go all in in this situation unless you are anticipating major market losses in the near future, you DMT.
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Old 11-28-2009, 08:50 PM   #3
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I agree with Harley, with an exception.

If you look at the index charts, then try to figure out "resistance", "breakthrough", "head and shoulders" and such, you are definitely a DMT.

However, if you read economic and business journals, listen to pundits in the media talk about the world macro economic trend and how it is affected by gummint intervention all around the world, then throw a coin to see if you should buy, sell, or hold, then you are a CMT.
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Old 11-28-2009, 09:02 PM   #4
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I give up. DMT and CMT


Edit

OK, I've answered my own question DMT - dirty market timer = pessimist?
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Old 11-28-2009, 09:13 PM   #5
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OK.

People here generally believe in staying in the market, and that trying to predict its movement is futile. They use asset allocation (AA), and would rebalance between stocks and bonds when their AA is out of whack. In other words, they believe that it is not productive to make market calls, and would simply wait to respond to market movements after the fact.

The above people call those who try to "time the market" DMT, short for dirty market timers.

I am among the people who know that it is tough but not wanting to give up this Quixotic effort, still try to predict the market a little but rely on macroeconomic and political information instead of just the stock charts or "technical analysis". I jokingly call myself "Clean Market Timer" because I do not consider myself dirty.

Search for CMT if you are curious to see how it started.

PS. I do consider the "chartists" DMT.
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Old 11-28-2009, 09:15 PM   #6
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Wormrider, anyone who believes they can accurately and consistently time the market correctly is far from pessimistic.
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