I have (unFoolishly) not put my 401k into an index fund for the past year (inception of my employment at this company) .. although it still worked out OK, as my return was approx. -7%, instead of the -8.51% the (SP500) index fund came through with so far. However, I would like to follow the Fool's rule of mutual funds and simply have only the index fund. I currently have the $$ spread thoughout 8 different funds of varying return ranging from a high of +5.76% to a low of -39.05% (luckily only 3% of my funds are in this one .. whew!). Historically, each of the 8 funds are good performers in the 3, 5, & 10-year avg annual returns.My question therefor is: Do I just transfer all to the index fund, or wait to at least break even on each fund before transferring ???
"My question therefor is: Do I just transfer all to the index fund, or wait to at least break even on each fund before transferring???" Your choice. Tax considerations might affect your choice. If you can use the tax losses, this will tend to influence you to take the losses now and make the switch. The question is whether your current funds will now rise faster than the index fund. The more volatile ones that went down fast and hard may indeed come back more quickly than the less volatile. Which way to do this is a personal choice. Yours. Best wishes, Chris
Since this is within the 401(k), there are no tax considerations.Do I just transfer all to the index fund, or wait to at least break even on each fund before transferring ???I don't see any need to wait. By moving the money over sooner rather than later, you will benefit from the lower expenses (if indeed the index offering has lower expenses) sooner.
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