Skip to main content
No. of Recommendations: 0
<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?>


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?

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.