Implications of changing 401K allocation
I have Merrill Lynch for my 401K at work and I have noticed that one my choices has a terrible expense ratio, 2.19%, and even if the ratio was lower the fund does not excite me compared to other choices.
If I sell off this fund (which is down big-time obviously) and move to money to the S&P Index fund or another better choice, for tax reasons (or any other reasons), is it a good time to sell this fund off while it's low?
I know you don't pay taxes until you need the 401K, but still I am assuming the account keeps track of all your transactions and maybe this move might be smart down the road .... or is it a bad time to sell off since the my money in the fund is lower than a year ago? I hope I am being coherent!
I am still trying to grasp all of the concepts of tax harvesting, etc.