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Subject:  Re: Transforming my 401k from Wise to Foolish Date:  9/29/1998  5:35 PM
Author:  TMFPixy Number:  5726 of 78168

Greetings, Vreinoso, and welcome. You wrote:

My employer (like most) gave me very limited options on my 401k - all mutual funds managed by the Wise. With some reservation but not sure I had any other choice, I chose some funds and maxed my contribution.

The good news was I maxed the contributions, the bad news was that I had to turn it over to the Wise to manage -- the fund options included no index funds. Now as the year comes to a close, my employer is considering altering the plan to give us the option to self-manage our 401k.

As fate would have it, the Wise managers of the funds I selected have lost me about 10% of my contributions. The question is should I lock in the loss and transfer the remaining amount to the self-managed option which would allow me to invest these and future contributions Foolishly or do I leave it there until I recoup my losses (who knows when?!) before transferring it to the self-managed account? I have, of course, decided to funnel all future contributions to the self-managed option.

In Foolish principal, I know I must take a long term view, but should I do that as well with money already in the clutches of the Wise?

Obviously, you and you alone must decide. But….(ain't dere always one of dem?) … Over the long term, you can probably do better with your money in the self-directed account. Nothing says you can't wait until your losses are recouped be