Friday, July 17, 2009
Getting flat in 401k
Today I moved all of my positions from my 401k into a money market to eliminate my risk going into a big week for earnings. The markets have crossed some key levels but have slowed. I am not sure if JPM and GS have set the bar too high or not. If earnings to suprise as much to the upside we could see a pretty sizable pull back from this 8% move. I am locking in a gain of 12.5% for the year, I may lose out on a couple of percentage points but sometimes you have to play defense first. I want confirmation.
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Mark asked: Hey Dominic, Aren't there penalties and taxes to worry about when moving your 401k?
ReplyDeleteNo because it is considered a rebalance. There are only penalties if you do it too often or if you actually cash the money out. I still have the money in the 401k, I have just rebalanced to 100% money market and have directed all future contributions to the money market within the 401k plan.
Ironically I talked to my Fidelity representative yesterday and U guess my company's 401k is structured differently...
ReplyDeleteYou can not do any kind or rebalance with out penalty? Can you do a rebalance? At the bottom of my page for the rebalance option it specifically says that trasfers to fixed or guarenteed funds is allowed.
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