401k investment change

Amazon
leeeeeet

Go to company page Amazon

leeeeeet
Jan 3 6 Comments

I work at Amazon. I’ve been investing my 401k to Vanguard Target 2055. Now, I’m thinking to switch it to VANG INST 500 IDX TR which I believe tracks s&p 500.

Do people usually change it for future investments only or also exchange the existing funds too? If it is the latter, what’s the tax implication?

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TOP 6 Comments
  • Cadence
    super-man!

    Go to company page Cadence

    super-man!
    No tax implications in a 401k if you are just (rebalancing) your portfolio, selling shares from one fund and moving $$ to other. That’s the best part about a retirement account.

    Totally a personal choice if you want to allocate new $$ to S&P500 fund you mentioned or rebalance out from the existing retirement fund. Do research about the retirement fund you currently hold and see it’s constituents, it will made of up of handful of other funds.
    Jan 3 0
  • R1 RCM
    retrying

    Go to company page R1 RCM

    PRE
    Amazon
    retrying
    You can exchange existing funds (re-blancing) if you wish, there are no tax implications.

    I took control of my 401k, and took money out of funds to invest in individual stocks myself. That gave me much better results last year (469.20%).
    Jan 3 2
    • Apple
      nLbf48

      Go to company page Apple

      nLbf48
      What stocks did you reinvest in? Which 401k company let’s you do this?
      Jan 3
    • R1 RCM
      retrying

      Go to company page R1 RCM

      PRE
      Amazon
      retrying
      I had 10% each in AMD, TSLA, NIO, and 20% in COIN. Got rid of COIN and invested 10% in NET recently. The rest was in cash to take advantage of any opportunity, and there were a few that I was able to take advantage of.

      It really depends on your 401k plan, some plans allow you to manage it completely (e.g. pick individual stocks and such). You will have to ask your 401k plan administrator if they provide such an option. Alternately you can ask the brokerage firm that is managing your 401k. They would also know if your plan is setup in that way.
      Jan 3
  • Amazon
    rajubhaiya

    Go to company page Amazon

    rajubhaiya
    I invest around 50% of my 401k in this same fund and i had 30.3% returns in 2021. Target 2055 only returned around 11%
    Jan 3 0
  • New
    vres54

    New

    vres54
    It doesn’t matter, put your money where you want it to be.
    Jan 3 0