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Subject:  Re: Transforming my 401k from Wise to Foolish Date:  9/30/1998  12:23 PM
Author:  VReinoso Number:  5741 of 101524

I must thank you all for your input. Apart from the valuable perspective your replies offer, it is also quite welcoming to get responses to my first Foolish posting. Thanks again.

The very process of typing my original post brought me closer to the decision that felt right and now that I have other opinions on the matter, I feel solid comfort in making the decision to withdraw all my money from the Wise.

Pixy's comment that to sit and wait to recoup losses was in effect an attempt at timing the market was compelling as was Bob's comment that to leave any money with the Wise was inconsistent with my decision to be Foolish.

DownwardSpiral's contrarian reply was also helpful, because it made me stop and review my reasoning. If it was the drop in my 401k that was troubling me, that I would indeed need to consider whether an equity position was appropriate. It was also helpful to be reminded that losses are not the exclusive purview of the Wise. The decision to be Foolish should not be viewed as protection from loss.

In reflecting, it became clear to me that what was troubling me was not the loss, but the lack of control. While I believe that my fund choices were sound in the context of an all mutual fund 401k plan that did not have an index fund choice, the more important issue for me was whether I wanted to make decisions in the context of mutual funds at all given the choice. I am certain that I do NOT, and so the decision is one fundamentally of control over my finances. My employer has now given me the choice between a Wisely managed 401k or a Foolishly self-managed 401k. In that context, I feel I must choose to be Foolish 100%; not out of disrespect for the wise or a naive assumption that I as a Fool will always post a gain, but out of a respect for myself and the comfort that all future investment decisions in my 401k (gloriously positive and painfully negative) will be transparent with a trail leading not to the plush offices of the Wise but to a Fool--ME!

Thanks again for all the input.



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