Quote:
Originally Posted by Yugo
Any of you all try to time the market when rolling over an old 401k acct? I just rolled over one of my old ones a couple of weeks ago thinking that market might take a small dip over the next few weeks, but there isn't one in sight.
Currently have the rolled over funds sitting in the account as cash uninvested. Thinking about indexing half and sitting on the other half waiting for a dip. Yea or nay?
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Time in the market > Timing of the market.
If you love Vegas, then go for it. Realistically, though, the loss in earnings while sitting in cash accounts is probably going to be greater than any future gain you see if jumping in at a dip - unless you just end up lucky.
If that worries - put it all in various S&P500 ETFs and then wait a week or two for the market to climb slightly. After that, do a Sale Stop-limit order with the sale limit price being slightly over your basis and the stop at your basis. Set it for 'in effect for next 360 days'.
This way, if the market does take a huge dive, your shares will sell at your basis and then you can just repurchase at the lower price then.