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My company decided to change 401k management, and I've been told that we will be forced to rollover our existing 401k accounts from the current management to the new management when the change becomes official. My logic tells me that I will loose money because my S&P 500 index fund is down with the market.

Can anyone see a silver lining to this cloud? I am trying to come up with some logic that says this won't be a bad thing for me, but I can't. All I see is that the Net Asset Value of my current fund is lower than my Dollar Cost Average so I lose if I have to rollover to a new fund!
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Can anyone see a silver lining to this cloud? I am trying to come up with some logic that says this won't be a bad thing for me, but I can't. All I see is that the Net Asset Value of my current fund is lower than my Dollar Cost Average so I lose if I have to rollover to a new fund!

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Yup, that's precisely what happened to me in July. However, the silver lining (for me, at least) is that in the interim the losses have been recouped by the ongoing recovery. I hope the same happens for you.

Remember, long term, the market goes UP!

Keep the faith!!

jtr
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You're being forced to sell your mutual funds and put them into cash. However, when the new plan starts up, you can take your cash and buy mutual funds in it (within the 401(k)). So you won't be too far removed from being fully invested.

Why are you worried about being briefly in cash? There won't be any tax issues (the main reason for not wanting to sell). You only lose money if the market skyrockets during the week/month you're in cash.
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In other words, you're not being paid a very good price for your shares when you are being forced to redeem, but you will be able to buy shares at bargain prices once the new plan starts up.
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Ah, I see the light!
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