Argh!
My wife's company decided to make changes to their 401K plan. We used to have access to almost the entire universe of Fidelity funds, but not anymore. Our choices have been reduced to a handful of funds (some OK, some not-so-good). This pretty much killed our slice-and-dice strategy. No REITs, no emerging markets, no mid caps, no good value funds, no commodities, no TIPS, no GNMAs... The only decent choices left are either lifestyle funds (though they are a bit expensive for my taste) or total market index funds (one domestic equity, one international equity, one US bond) at rock bottom prices. I am leaning toward the cheap index funds.
As a result of the change, we are required to liquidate all our original Fidelity funds and transfer the money to the new funds. What a great time to be doing that! 
So my plan is currently as follows:
US equity index, large value, small value and REIT will be transferred to the total US market index.
Developed and Emerging markets will be transferred to the international market index (which has almost no exposure to EM).
All bond funds will be transferred to the total bond market index.
It means that I will have to lock in the losses on some funds (REITs, EM,...) with no chance to recoup that money! 
Do you guys have any other suggestions as to limit the losses?
|
Threaded Mode
