Rebalance 401k?

ASP
itsalright

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itsalright
May 12, 2021 17 Comments

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

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TOP 17 Comments
  • New
    jumboblind

    New

    jumboblind
    Do NOT move to bonds. You'll get raped by inflation
    May 12, 2021 4
  • AXA Equitable Life / Sales
    buylow85

    Go to company page AXA Equitable Life Sales

    buylow85
    You can’t time the market πŸ€¦πŸ»β€β™‚οΈ
    May 12, 2021 0
  • 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.
    May 12, 2021 4
    • ASP
      itsalright

      Go to company page ASP

      itsalright
      OP
      I have roughly 250k in 401K. 25k (10%) in bonds and rest in large caps, mid caps, international stock market funds. Large chunk 100k is sitting in large caps, so was planning to move half of it to bonds for the next couple of months. I am at 36 yrs.
      May 12, 2021
    • What's your reasoning for keeping 10% in bonds? I'm not saying you're wrong, but just trying to understand your strategy.
      May 12, 2021
  • New
    gobhiCoinn

    New

    gobhiCoinn
    Don’t do it now
    May 12, 2021 0
  • Buy high, sell low, yolo
    May 12, 2021 0