Re: Frequent Allocatiion of 401k funds

From: R Mills <rmills@philipsdvs.com>
Subject: Re: Frequent Allocatiion of 401k funds
Date: Thu, 13 May 1999 13:32:51 -0600

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Bummer you are losing now with the market doing well.I got the wild idea of
timing the market, as you mentino.  I consider myself pretty sharp.  Why not
jump in and out of funds and make a little "extra"?  Sounds pretty good!  Well,
I tried it, gave it my best shot and lost.  Started jumping in and out of the
market between mutual funds (when I thought the market was goig to rise a bit),
and money market funds (when I thought the market was goig to decline a bit).
Worked ok for the first few times, then when I tought it was doing to drop, I
pulled back into money markets and guess what....it rose, and rose and rose.
Now I have money parked in the money markets and have missed a good run of the
market.  From now on, I invenst in solid funds, long term, and reallocate
yearly.

You may be better off to evaulate whether the funds you are in are a solid
value.  Why are they losing 30%

Poorer but wiser, :-)
Robin

> Subject: Frequent Allocatiion of 401k funds
>
> Hi
>
> My questions is if you were to frequently change your
> account allocation to play the market or even to pull out
> of a losing fund and move it to something else, is there
> are long term problem with this approach.
> They say it is better to leave it as it is - but some of my
> funds are losing like -10 to -30%. Will I gain anything
> by moving in and out or will I lose ? Right now I have
> put it in money market for everything is losing
> BTW my 401K is tied to Minnesota Mutual.




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