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Author: davedwards Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: 401(k) Flexibilities Date: 2/21/2001 9:27 AM
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The company I work for allows us to move funds in our 401(k) plan to and from a wide variety of mutual fund selections as often as we wish... even daily... at no cost.

One of my coworkers brags about moving his funds weekly into the 2 or 3 funds with the highest returns. He says that way he's always guaranteed a positive return, and there's really no risk and no charges for doing so. He likes to use a "cash" example... "why keep $1,000 in an account that pays 8% one day and then losses 4% the next, when I can move those funds to accounts which pay up every day."

I'm a "buy and hold" kind of guy, with most of my 401(k) funds invested in an S&P Index fund. But I'm curious, are there any dangers to moving my funds back and forth so frequently just to stay ahead of the index?
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