UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75890  
Subject: Re: Pension rollover Date: 10/20/1998 1:03 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Dougc1, and welcome. You asked:


I currently have some significant dollars in a pension plan with my former employer. I can leave the money there or I can roll it over into something I have control over. I would like to move it to Vanguard's S & P 500 Index Fund (IRA) but I don't know how to time the market for moving the investment. Amount is in the $40-$50K range. Can anyone advise?

As I've said many, many times in this folder there is never a "right" time to be in the market, only a "wrong" time to be out of it. Timing the market is a fruitless exercise. No one is able to do it successfully on a consistent basis. Also, numerous studies have been done comparing the difference between investing a large lump sum all at once or investing part of it over a longer period of time. These studies have repeatedly shown that over the long haul the differences are negligible.

If the current market bothers you, then transfer your money into a money market fund with Vanguard first. Then over the course of a year or two just move some money monthly from that account into the Vanguard 500. That procedure may allow you to sleep better at night. Be aware, though, that when the market moves upward it does so very, very quickly. Thus, be prepared to miss some gains if you follow that course.

Regards……Pixy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement