Author Topic: Changing Long Term Investments  (Read 318 times)

donutdevourer

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Changing Long Term Investments
« on: January 13, 2021, 09:22:58 AM »
I understand the whole trying to time the market and buy high/sell low, but should someone worry about that if they want to change their long-term retirement investments? For example, I want to change my investments to Vanguard Institutional Index Fund Institutional from my current higher expense ratio (0.8-1%). However, I am unsure whether I should just do it now even though the market is higher or wait for a downturn? I am assuming waiting runs counter to the idea that you canít really predict the ups and downs of the market and when itís hit bottom.

My psychology is such that I just want to set my investments and forget about them, otherwise, I will obsess and be necrotic over my investment over the long haul and that is no way to live life lol!

Thanks for any help!

alcon835

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Re: Changing Long Term Investments
« Reply #1 on: January 13, 2021, 10:05:16 AM »
I did something similar last year. Since then the old fund has done better than the new fund. That was only 6 months ago, though, and long term I expect the new fund to do significantly better than the old.

There really is no way to time the market. The thinking that helps me is this: "If I were starting today, knowing everything I know now, with the money I currently have, what would I buy?" and if the answer is, "What I already have" then I would keep it. If the answer is "I'd switch fund X to fund Y" then I make the switch.