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Author: Alteno Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Rollover to Similar Funds? Date: 8/28/2001 2:06 PM
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Hi, I have recently changed jobs and have some funds that I need to roll over into an IRA. The money I have at the old job I have invested in equal amounts in small cap growth and mid cap growth funds. It amounts to about $6,000 total. I was wondering if it made sense to roll the money over into similar type funds at Vanguard (where I currently have my Roth IRA)?

My thought was that I could put the money in similar funds which have been doing poorly anyway and wait until the market improved before trading for what I would really like to do: invest half into a REIT and the other half into an energy fund. Then again, I thought I should just roll it all into the REIT and Energy and be done with it. With my ex-employer matching 5% of contributions, I haven't lost (my own) money anyway. Any thoughts on this would be most welcome.
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Author: TMFJeanie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 31658 of 74759
Subject: Re: Rollover to Similar Funds? Date: 8/28/2001 2:21 PM
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I was wondering if it made sense to roll the money over into similar type funds at Vanguard (where I currently have my Roth IRA)?

My thought was that I could put the money in similar funds which have been doing poorly anyway and wait until the market improved before trading for what I would really like to do


Unless your 401k investments are in proprietary funds that cannot be transferred without first being liquidated, you could roll them over intact and then simply sell them, putting the proceeds into Vanguard's money market fund until you're ready to select your new purchases. Why do a temporary buy/sell of like funds if you already know that's not what you want? If you're unsure about the market going lower, you could make your new purchases gradually, dollar-cost-averaging into them each month or quarter until you're fully invested again.


Cheers,

Jeanie



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Author: jbking Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 31659 of 74759
Subject: Re: Rollover to Similar Funds? Date: 8/28/2001 2:23 PM
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Greetings Alteno,

Hi, I have recently changed jobs and have some funds that I need to roll over into an IRA. The money I have at the old job I have invested in equal amounts in small cap growth and mid cap growth funds. It amounts to about $6,000 total. I was wondering if it made sense to roll the money over into similar type funds at Vanguard (where I currently have my Roth IRA)?

It would if there are similar types which in one case there is and not in the other case with that money. Small-cap growth options would be an index(VISGX) and Explorer(VEXPX) while for mid-cap growth there is just Capital Opportunity(VHCOX) that has a $25K minimum even for IRAs.

My thought was that I could put the money in similar funds which have been doing poorly anyway and wait until the market improved before trading for what I would really like to do: invest half into a REIT and the other half into an energy fund. Then again, I thought I should just roll it all into the REIT and Energy and be done with it. With my ex-employer matching 5% of contributions, I haven't lost (my own) money anyway. Any thoughts on this would be most welcome.

Vanguard has a REIT index(VGSIX) and Energy(VGENX) funds should you want those instead of the growth funds. As a side note, the REIT and Energy are mid-cap value style funds that are the opposite style.

Let me see if I could put this question in the proper light: Do you believe small-cap and mid-cap growth will roar back better than REIT and Energy? That along with whether you want to invest in just a couple sectors are the big questions you have to answer.

JB

PS - I do own shares of Capitol Opportunity(VHCOX) in my Roth that I've been buying since 1999.

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