Sorry for another 401k topic... I have a rollover 401k at Fidelity that I need to invest. Assuming I'm putting it into an index fund or ETF, should I just buy in now, or DCA? If DCA, over how long (6 mos, 12 mos, etc)?

Depending on age just lump sum it in my mind. Not worth the extra hassle/gamble, and chances are you'll lose out on returns rather than gain.

It boils down to this: Do you think markets will be higher or lower 12 months from now? Two of three indices are at record highs, and interest rates are still relatively high. The Russell 2k is still about 20% off its record, though.

If you DCA for 12 months, there's 3 outcomes and two are decent/good.

Market goes down, you're buying shares at a lower price each month. GOOD
Market goes sideways, (assuming your DCA account has a decent interest rate) you're earning interest. GOOD
Market takes a moonshot, you'll be unhappy. BAD, but you can always short circuit the DCA if you feel like jumping in.

Assuming by your handle that you're about 35-36 y.o. so probably won't matter by retirement age. If you were 55+, I'd strongly urge using DCA.

Thanks for the insight. I just turned 40 in January. I'm going to start moving 25-30% in ASAP.

Any arguments for mutual funds vs ETFs?

They both have their place, and both fit into lots of investors' plans. I wouldn't really want to wade in any deeper than that on a message board, due to fiduciary rules.

You can also self direct into RE partnerships, private placement offerings, and the like. A great way to grow your assets.

Well said there at the end. If 55+ the reasons for DCA are much much stronger. If 35 or less it probably won't matter as much. At 40 I might DCA but wouldn't worry too much about it, as in I wouldn't let the market feedback spook me into pausing a contribution (some type of mass event notwithstanding). What you don't want to do is wait to put in because the indexes are all higher. Then wait again, then wait again, then put it in our of frustration and losing out on potential gains. If I were DCA at 40 I would pick 3-4 dates to use and stick to it to try and remove the human element.

All in.

You already DCA'd when you were contributing.

Now you are just continuing the journey.

DCA works great, getting more shares as the price goes down, as long as what you buy eventually goes back up. Ask me how I know, lol.

A buddy of mine started a 500k+ rollover of his 401k mid December and they had to convert it to cash to roll it out. He is pretty sick to his stomach about the change in stock prices from the time he sold to now.

It might have been better for him to roll it out in chunks since the funds have to be out of the market for a little over a week for the process to work through the system. (His 401k provider has to sell the shares and when the funds settle mail a paper check to the brokerage to be deposited then he can reinvest)

permabull said:

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A buddy of mine started a 500k+ rollover of his 401k mid December and they had to convert it to cash to roll it out. He is pretty sick to his stomach about the change in stock prices from the time he sold to now.

It might have been better for him to roll it out in chunks since the funds have to be out of the market for a little over a week for the process to work through the system. (His 401k provider has to sell the shares and when the funds settle mail a paper check to the brokerage to be deposited then he can reinvest)

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This comment makes no sense. Why is he sick to his stomach if it only takes 1 week to process a rollover and get the funds reinvested? Did he not deposit the check and reinvest as soon as it was received in mid-late December? If not it's his own fault.

And if he still hasn't deposited the check then he now has serious tax consequences.

I retired in 2018, rolled everything to my IRA and the cash was electronically transferred. And invested almost immediately. I've been taking RMD's every year since and I'm still up close to 60%.

Baby Billy said:

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permabull said:

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A buddy of mine started a 500k+ rollover of his 401k mid December and they had to convert it to cash to roll it out. He is pretty sick to his stomach about the change in stock prices from the time he sold to now.

It might have been better for him to roll it out in chunks since the funds have to be out of the market for a little over a week for the process to work through the system. (His 401k provider has to sell the shares and when the funds settle mail a paper check to the brokerage to be deposited then he can reinvest)

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This comment makes no sense. Why is he sick to his stomach if it only takes 1 week to process a rollover and get the funds reinvested? Did he not deposit the check and reinvest as soon as it was received in mid-late December? If not it's his own fault.

And if he still hasn't deposited the check then he now has serious tax consequences.

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The funds were correctly deposited into the rollover account but he sold before the fed meeting, missed the gap up while waiting for the check to get sent, thought he could wait for a pull back to put the money back in.

permabull said:

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Baby Billy said:

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permabull said:

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A buddy of mine started a 500k+ rollover of his 401k mid December and they had to convert it to cash to roll it out. He is pretty sick to his stomach about the change in stock prices from the time he sold to now.

It might have been better for him to roll it out in chunks since the funds have to be out of the market for a little over a week for the process to work through the system. (His 401k provider has to sell the shares and when the funds settle mail a paper check to the brokerage to be deposited then he can reinvest)

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This comment makes no sense. Why is he sick to his stomach if it only takes 1 week to process a rollover and get the funds reinvested? Did he not deposit the check and reinvest as soon as it was received in mid-late December? If not it's his own fault.

And if he still hasn't deposited the check then he now has serious tax consequences.

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The funds were correctly deposited into the rollover account but he sold before the fed meeting, missed the gap up while waiting for the check to get sent, thought he could wait for a pull back to put the money back in.

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There's his problem.

While on the topics of rollovers, i have a significant rollover coming up (quitting job).
Any thoughts on brokerage?

I have a rollover with Vanguard (from previous job),
Wife has a rollover with Fidelity

They've both performed well, and both have very wide range of investment options. Does it matter which company I should pick? Vanguard? Fidelity? Something else?

No not really, especially between those 2. Just choose the one with the platform you prefer, if either.

deddog said:

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While on the topics of rollovers, i have a significant rollover coming up (quitting job).
Any thoughts on brokerage?

I have a rollover with Vanguard (from previous job),
Wife has a rollover with Fidelity

They've both performed well, and both have very wide range of investment options. Does it matter which company I should pick? Vanguard? Fidelity? Something else?

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I had both a rollover IRA and old Roth w/ Vanguard that I moved to Schwab because that's where I had my taxable account (originallly ameritrade), and I like the thinkorswim platform. My 401k is with Fidelity, and I have most of it in the brokerage account option. I'm not crazy about its interface. That said, Fidelity offers one good advantage - their cash sweep account offers 5% interest currently, and if you sell options, your cash securing the options will collect that interest.