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Moving from Stable Value/cash Back into Stocks
Old 01-04-2021, 07:51 AM   #1
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Moving from Stable Value/cash Back into Stocks

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?
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Old 01-04-2021, 08:01 AM   #2
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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,

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Old 01-04-2021, 08:43 AM   #3
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I would do the all at once, simply because it gets it done and no need for the bi-weekly transactions.
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Old 01-04-2021, 08:56 AM   #4
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If you have a plan that completes in March, stay with the plan.
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Moving from Stable Value/cash Back into Stocks
Old 01-04-2021, 04:01 PM   #5
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Moving from Stable Value/cash Back into Stocks

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 doesnít matter.

(I say this as I dollar cost avg over a few months myself..what a wimp)
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Old 01-04-2021, 04:46 PM   #6
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Thanks for the helpful replies!!

I compromised - I moved halfway there today.

Plan to make the final move next Friday.
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Old 01-04-2021, 05:11 PM   #7
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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
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Old 01-04-2021, 05:16 PM   #8
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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.
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Old 01-04-2021, 08:54 PM   #9
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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.
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Old 01-04-2021, 08:56 PM   #10
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Good, now I know when the market will crash again
That'd be just my luck.
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Old 01-05-2021, 05:30 AM   #11
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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.
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