Moving from Stable Value/cash Back into Stocks

[Born2Fish]

My company 401k plan moved from Principal to Fidelity a few months ago. I moved most of the 401k holdings into the stable value fund a few days before the 401k transition/blackout period began.

Once the Fidelity account was available I have been making small moves toward desired AA every 2 weeks. At this rate I will complete the rebalance in March.

Should I continue slow and steady or just make a single large move to achieve my desired AA and then rebalance going forward?

[VanWinkle]

Quote:

Originally Posted by Born2Fish My company 401k plan moved from Principal to Fidelity a few months ago. I moved most of the 401k holdings into the stable value fund a few days before the 401k transition/blackout period began. Once the Fidelity account was available I have been making small moves toward desired AA every 2 weeks. At this rate I will complete the rebalance in March. Should I continue slow and steady or just make a single large move to achieve my desired AA and then rebalance going forward?

All at once has been shown to have better returns. This is a personal decision depending on your ability to watch a large single investment go down right after you invest. If you're a "rock", put it all in. If you tend to be emotional
about the market, keep dollar cost averaging into the market and complete in March.

Hope that helped,

VW

[38Chevy454]

I would do the all at once, simply because it gets it done and no need for the bi-weekly transactions.

[target2019]

If you have a plan that completes in March, stay with the plan.

[Retireby45ish]

Agree with what others have said. But remember when you take this money out in a bunch of years it will hopefully be up, say, 350%. So will the fluxuation between now qnd March of, say, 5% matter much. 345% or 355%. At that point the variance is just noise. So do what feels right because in the long term it doesn’t matter.

(I say this as I dollar cost avg over a few months myself..what a wimp)

[Born2Fish]

Thanks for the helpful replies!!

I compromised - I moved halfway there today.

Plan to make the final move next Friday.

[Sunset]

Quote:

Originally Posted by Born2Fish Thanks for the helpful replies!! I compromised - I moved halfway there today. Plan to make the final move next Friday.

Good, now I know when the market will crash again

[Dtail]

Quote:

Originally Posted by Born2Fish Thanks for the helpful replies!! I compromised - I moved halfway there today. Plan to make the final move next Friday.

Okay good.
If your Stable Value fund has a good yield, remember to potentially keep your 401k vs. rolling over to an IRA upon retirement.

[Born2Fish]

Quote:

Originally Posted by Dtail Okay good. If your Stable Value fund has a good yield, remember to potentially keep your 401k vs. rolling over to an IRA upon retirement.

Retired last April and intend to keep the 401k.

Stable Value yield is very low but investment expenses are, too.

[Born2Fish]

Quote:

Originally Posted by Sunset Good, now I know when the market will crash again

That'd be just my luck.

[target2019]

Quote:

Originally Posted by Born2Fish Retired last April and intend to keep the 401k. Stable Value yield is very low but investment expenses are, too.

It was cool that you were able to keep the Stable Value when you moved to Fidelity.

Since your plan to reinvest is a shorter time frame, it won't matter long term what you do (some people are saying) but short term the market can tank or improve, and you start second guessing what you did.

Somewhere down the line you'll forget about the moves and just enjoy it.