Author Topic: 401K Fund Questions  (Read 1499 times)

wkumtrider

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401K Fund Questions
« on: October 31, 2016, 05:16:53 AM »
Hello,

The default plan for my 401K  invested my money in several different funds.  The money was going to about 6 or 7 different funds and I narrowed it down to three due to the high fees of the other funds.  I now have 3-4 funds that are just sitting there with no activity other than following the market.  My question is, do I just leave these funds alone, hoping they will grow over the years? Should I sell them if that is an option?  I don't know a lot about 401Ks and what you can and can't do with the funds.  I am open to all suggestions.

Thank you!

ooeei

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Re: 401K Fund Questions
« Reply #1 on: October 31, 2016, 07:30:55 AM »
Hello,

The default plan for my 401K  invested my money in several different funds.  The money was going to about 6 or 7 different funds and I narrowed it down to three due to the high fees of the other funds.  I now have 3-4 funds that are just sitting there with no activity other than following the market.  My question is, do I just leave these funds alone, hoping they will grow over the years? Should I sell them if that is an option?  I don't know a lot about 401Ks and what you can and can't do with the funds.  I am open to all suggestions.

Thank you!

Assuming they're low cost index funds that you're okay with investing in, leave them alone.  I'm not sure I'm getting what you're asking right though, are you wondering about whether you should sell during certain times and try to time the market?

wkumtrider

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Re: 401K Fund Questions
« Reply #2 on: October 31, 2016, 09:54:36 AM »
I stopped investing in 4 funds in my 401K and now invest in only 3 funds (was investing in 7 when the account was first opened).  So I have these funds now that are not receiving anymore money, they are just sitting there.  Not sure that makes sense or not.  I was wondering if I should just leave them alone or sell them. 

Nothlit

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Re: 401K Fund Questions
« Reply #3 on: October 31, 2016, 10:01:57 AM »
You should be able to exchange from your old funds into your new funds. Since it is within a 401k, it won't be a taxable event. You may want to verify first that there are not any short-term trading fees (e.g., some funds assess a fee if you sell shares that you have held for less than 60 or 90 days). But other than that little caveat, you should be good to go!

dunhamjr

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Re: 401K Fund Questions
« Reply #4 on: November 05, 2016, 12:02:50 AM »
IMO you should transfer the money out of those 4 you stopped, that way there money is all in your 3 lower cost funds.

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