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URL:  http://boards.fool.com/in-a-401k-or-ira-you-can-move-money-around-15695420.aspx

Subject:  Re: Taxable vs tax Defered Date:  9/6/2001  12:48 AM
Author:  Sonnet Number:  31815 of 76237



In a 401k (or IRA), you can move money around from growth funds, to value funds, or to bond funds any time you want to with no tax consequences. If you do this in the taxable account, you'll constantly be worrying about the taxes. In fact, you may worry so much that you decide not to take capital gains when you really should. Then, you could suffer a big capital loss when you eventually liquidate.

I think what I would worry about in a taxable account is being out of the market at the wrong time, not the taxes, anyway I'm not a market timer, I'm not smart enough to know when the best time is exactly to be in bonds or growth or value stocks, so I just keep my allocation according to my time horizon till I would need the money, for stocks this is 5 years. And a good stash of "cash" to see me through an emergancy.
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