Anticipating the breadth of market sell off, is it a good idea to rebalance 401k? Basically, temporarily exchange vanguard large cap to bonds for next couple of months #personalfinance #investments TC: 316 thousand dollars and 43 cents
Buy high, sell low, yolo
You can’t time the market 🤦🏻♂️
Terrible idea, timing the market in general is a losing game but doing it in your 401k is even worse (limited TLH benefits, missing out on gains, ...). If you're close to retirement and plan to withdraw from 401k soon, it may make a little seen to move to safer options but if you're in it for a while then don't rebalance to bonds - you could miss out on a lot of potential gains. Having a balanced portfolio is important and rebalancing based on that strategy is fine - so if part of your strategy is to have 10% in bonds, and you only have 5% now because other sectors have gone up a lot, it's fine to rebalance and refill your bonds %. I like to do that on some defined period (for eg every 6 months) and not react to the market daily or weekly.
This makes sense, I only have 10% in bonds and was thinking of moving my 50% of large caps to bump up bonds
That's fair - what's your target percentage for bonds? A lot of it depends on your age, when and how you plan to use your 401K, and your risk tolerance. Personally, I'm not huge on bonds right now because I'm quite far from retirement and can handle the market swings.
Don’t do it now
Do NOT move to bonds. You'll get raped by inflation
Cmon man. Don’t use such bad words
I don't know a better word for inflation. Apologies gobhi
Don't try and time the market!
You're too late lol, sell low and buy high
Worst time to get into fixed income. Stick to equities.
Yes. Should have done it sooner and locked in gains. Now it's too late
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