 |
|
|
|||||
| « Previous thread | Next thread » |
I am considering moving some of my money market 401k money to stock
funds under the same 401k account.
Here's my question. Just "as of what time" share prices are used, if I
want to rebalance my 401k portfolio.
Example, let's say that I submit a request to sell money market shares
and buy value fund shares, at 2pm on a trading day. Would the request
be effected same day? What is I do the same at 5am on a trading day?
Would it be using share prices for this market close?
--
Due to extreme spam originating from Google Groups, and their inattention
to spammers, I and many others block all articles originating
from Google Groups. If you want your postings to be seen by
more readers you will need to find a different means of
posting on Usenet.
http://improve-usenet.org/
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
On Oct 13, 9:25 am, Ignoramus31919 <ignoramus31...@NOSPAM.
31919.invalid> wrote:
> I am considering moving some of my money market 401k money to stock
> funds under the same 401k account.
>
> Here's my question. Just "as of what time" share prices are used, if I
> want to rebalance my 401k portfolio.
>
> Example, let's say that I submit a request to sell money market shares
> and buy value fund shares, at 2pm on a trading day. Would the request
> be effected same day? What is I do the same at 5am on a trading day?
> Would it be using share prices for this market close?
> --
Usually you'd get the NAV for that mutual fund for that day after
closing, to be effective the next day. Some mutual funds are priced
at 12:00. Most are priced after closing.
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
On Oct 13, 11:25 am, Ignoramus31919 <ignoramus31...@NOSPAM.
31919.invalid> wrote:
> I am considering moving some of my money market 401k money to stock
> funds under the same 401k account.
>
> Here's my question. Just "as of what time" share prices are used, if I
> want to rebalance my 401k portfolio.
>
> Example, let's say that I submit a request to sell money market shares
> and buy value fund shares, at 2pm on a trading day. Would the request
> be effected same day? What is I do the same at 5am on a trading day?
> Would it be using share prices for this market close?
This is going to depend on the 401(k) provider, and perhaps on the
agreement that they have with your company. Why not just call the
provider and ask?
> Due to extreme spam originating from Google Groups, and their inattention
> to spammers, I and many others block all articles originating
> from Google Groups. If you want your postings to be seen by
> more readers you will need to find a different means of
> posting on Usenet.
> http://improve-usenet.org/
There is no need to block Google Groups articles in moderated
newsgroups, such as m.i.f-p, as the moderator doesn't post any spam.
If you choose to block these articles anyway, you may miss out on good
information.
Dave
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
I have a very similar question. On Friday, I issued a rebalance
request. The processing went down like this. Friday NAV (10/10 for
all of the Sell orders. Monday NAV (10/13) used for the Buy orders.
I lost thousands, as Monday was a big gain day. Is this typical? To
me, it is too hard to believe that rebalancing would cause me to lose
this much money. Any and all help/advice greatly appreciated.
Andy
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
On Oct 16, 10:00 am, a...@g...com wrote:
> I have a very similar question. On Friday, I issued a rebalance
> request. The processing went down like this. Friday NAV (10/10 for
> all of the Sell orders. Monday NAV (10/13) used for the Buy orders.
> I lost thousands, as Monday was a big gain day. Is this typical? To
> me, it is too hard to believe that rebalancing would cause me to lose
> this much money. Any and all help/advice greatly appreciated.
> Andy
>
Of course it's not typical. There is nothing typical about this
market. The process is typical. But you got caught in a whipsaw.
Here are some advice.
1. Next time, don't issue buy/sell orders at the same time. If you
are concerned about short term fluctuations, issue one order before
closing on one day. Then issue the counter order just before closing
the next day. That way you have some idea what you are selling and
buying into.
2. Don't worry about short term fluctuations if you are a long term
investor.
3. Trade ETF's instead of MF's. That way you have a definite idea
what price you are paying.
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
On Oct 16, 11:08 am, PeterL <p...@g...com> wrote:
>
> 3. Trade ETF's instead of MF's. That way you have a definite idea
> what price you are paying.
This is an interesting suggestion. However, with ETFs you pay
commission
to trade (probably not a big deal for long term holdings), and in some
cases
the expense ratio is higher than that of an equivalent mutual fund.
For example:
FSMKX - 0.10%; SPY - 0.08%
FSIIX - 0.10%; EFA - 0.34%
In the latter case, you're not only paying commission to trade but
you end up with a 3x expense ratio! Not good unless you're doing
short-term trades (because in that case the mutual fund would have
charged a short-term trading fee).
Anoop
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
anoop <g...@g...com> writes:
> in some cases the expense ratio is higher than that of an equivalent
> mutual fund.
>
> For example:
> FSMKX - 0.10%; SPY - 0.08%
> FSIIX - 0.10%; EFA - 0.34%
VEA: 0.12%
Not precisely the same, but about as close as it gets,
and a bit more tax-efficient, as well.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
anoop wrote:
> This is an interesting suggestion. However, with ETFs you pay
> commission
> to trade (probably not a big deal for long term holdings), and in some
> cases
> the expense ratio is higher than that of an equivalent mutual fund.
>
> For example:
> FSMKX - 0.10%; SPY - 0.08%
> FSIIX - 0.10%; EFA - 0.34%
It's funny to look at the differences in costs between ETFs and
open-ended mutual funds on a day that some of the broad market ETFs
closed 8-9% higher than their intra-day lows...meaning the mutual fund
buyer, who buys shares at the end-of-day NAV, pays 8-9% more than the
"best price" of the day. And on the flip side, the mutual fund sellers
got 8-9% more than the "worst price" of the day for the ETFs.
Fortunately it isn't usually so volatile intra-day, otherwise these ETF
vs mutual fund choices could really affect net returns just from
time-of-day price differences. It does make rebalancing a bit more
difficult though...at least the ETF price is known at the time of the
trade, more or less.
A similar issue is in Vanguard's 529 plan where there's a two-day lag
for a purchase even if you use the auto-debit from a checking account.
Over the past two weeks there have been some pretty big two-day moves.
-Tad
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
| « Previous thread | Next thread » |
FROM THE MODERATORS: Lengthy posts
Big Slide in 401(k)s Spurs Calls for Change
Short-term Fund purchasing advice...
closed-end fund are selling at big discounts
FROM THE MODERATORS: Posting to misc.invest.financial-pl an
FROM THE MODERATORS: Political comments are off-topic
Up