Alright, I committed some investing mistakes in my pre-MMM/FIRE days. I am looking for suggestions and advice on how to transition my portfolio.
Current Portfolio: 401Ks: 50% S&P 500 (FXAIX), 25% Small Cap Value (FCPVX), 25% Mid-cap (FSMAX)
Roth IRAs: 92% Medical Sector (FSMEX), 8% S&P 500 (FXAIX)
HSAs: 88% Technology Sector (FOCPX), 12% S&P 500 (FXAIX)
Desired Portfolio: 50% S&P 500 (FXAIX) and 50% Small Cap Value (AVUV) across the board in all accounts.
Note: All new contributions into the Roths and HSAs are 100% FXAIX, 401K is still 50/25/25.
The sector funds have pretty much matched the S&P 500 returns since we've been invested within 0.5% returns since 2017 (ROTH) and 2018 (HSA), excluding activity in September 2022. However, the sector funds are down much more than S&P 500 YTD. The sector funds are down 27.5% YTD vs -16% YTD for S&P 500 (excluding September).
Do I rip the band-aid off now and re-allocate or should I wait until the sector funds recover before transitioning to 50/50 S&P/SCV? Ideally I would like to see the YTD returns of the sector funds closer to the S&P before making the move. Technically, these funds have pretty much matched S&P returns since the accounts were invested, so moving now still isn't a bad scenario.
I am approximately 7 years from FIRE, so I will remain 100% stocks until 3 to 5 years from FIRE.