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<As I understand it, it makes good sense to transfer all my other fund holdings into the
index fund and to max out my 401k contribution limit. Am I understanding correctly? When is the
best time to transfer? Should I transfer everything now and at once? Or should I transfer to the
money market and then wait for a slight dip in the index fund so I can get a little more index fund
for my transfer? Am I confused or Foolish?>

mt,

Every 401(k) plan is different. Some plans permit changing funds daily while others limit it to very infrequently, so it is important to find out what your plan permits. First check how long it takes to switch funds and then how often you can do it. There were a fair number of federal government workers who tried to switch their money out of stocks last August during the market drop. Because their plan only allows switches once a month, many were only able to switch back after the market had recovered.

IMHO, just switch the money all at once. After all, would a $1/share make that much of a difference in 30+ years?

GP
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