I have been reading this forum, including old posts, for a while now, and have been reading the recommended books. Overall I feel I now have a good grasp of our financial goals and how we want to get there. Our next step is rolling over a few high cost 403b's into a Vanguard IRA.
My question seems stupid, but for some reason I just can't get my head around it to get a clear answer. One minute I think I understand, then not. Please bear with me while I try to explain my convoluted thinking:
The money I will be rolling over was invested about five years ago, when the market was much lower. Since the market is currently at such a high, once I rollover into new funds, will these new funds (assuming same AA and similar funds) rise and fall with the market at the same rate as the old funds would have. (Excluding the effect of much lower costs, of course.)
Basically - does the fact that we will now own the same dollar amount, but less shares, change our future gains/loss.
Thanks!!
Brenda
My question seems stupid, but for some reason I just can't get my head around it to get a clear answer. One minute I think I understand, then not. Please bear with me while I try to explain my convoluted thinking:
The money I will be rolling over was invested about five years ago, when the market was much lower. Since the market is currently at such a high, once I rollover into new funds, will these new funds (assuming same AA and similar funds) rise and fall with the market at the same rate as the old funds would have. (Excluding the effect of much lower costs, of course.)
Basically - does the fact that we will now own the same dollar amount, but less shares, change our future gains/loss.
Thanks!!
Brenda