SAIA | 401-k strategy, any ideas?

[Dracula]

I put my contribution, when Saia posts it, into the retirement account. it doesn't pay much interest but the principal is safe.When the market drops into the 81-8300 range, I 'll buy more of my favorite funds which are Ariel Appreciation, CalamosA, Diversified International, and small company. I'll also check the dividend payout schedules and buy other funds to earn the dividend.

If you are moving in and then out of a fund within 30 days, beware of the roundtrip rule. Most, if not all, of these funds require you to hold a position for 31 days. I got a nasty letter from fidelity reminding me of this.
Any ideas?

 

[Demolitionman]

I never had a problem moving things around. Right before the market dumped I moved most all of my money into bonds and a retirement money market account. Each move I did went to a screen stating if the price drops X amount, my transaction will be cancelled.

 

[rgolfer]

moving a fund

Dracula, if you make to many moves Fidelity Locks your account and you are frozen for 3 months. Saia has a lousy 401K not many choices, bonds should be dropping raiseing the yield, if they have anything with a hint of gold or silver in it go for it.

 

[imported_River17]

I put my contribution, when Saia posts it, into the retirement account. it doesn't pay much interest but the principal is safe.When the market drops into the 81-8300 range, I 'll buy more of my favorite funds which are Ariel Appreciation, CalamosA, Diversified International, and small company. I'll also check the dividend payout schedules and buy other funds to earn the dividend.

If you are moving in and then out of a fund within 30 days, beware of the roundtrip rule. Most, if not all, of these funds require you to hold a position for 31 days. I got a nasty letter from fidelity reminding me of this.
Any ideas?

Dracula

Sounds like you are doing the same thing I am doing with my 401K plan. Having my weekly contribution going to a Money Market (cash) fund. And then buying when the S&P drops below a certain level. Right now anywhere close to 815 is a screaming buy.
The reason that Fidelity doesn't want you to trade within 31 days is because of the "wash rule", that won't let you claim losses if you buy or sell 30 days before or after.
The Wash Sale Rule

We have our 401K with Vanguard, and they have a rule to keep people from frequent trading. If you sell shares from a fund then you can't buy into that fund for 60 days.
I'll put in a shameless plug for a thread in the FedEx Freight board. If you follow the financial markets in the trucking industry.
http://www.truckingboards.com/trucking/upload/431881-post1.html

 

[scout]

wow,you guys are way over my head in moving money and trading,but dont go away you guys are interesting to listen to.i just deduct 20 percent from my weekly ck and let it roll..i have my investment in fid-div---spartan us---fid puritan----fid blue chip growth,,,,,any ideas....thanks

 

[imported_River17]

wow,you guys are way over my head in moving money and trading,but dont go away you guys are interesting to listen to.i just deduct 20 percent from my weekly ck and let it roll..i have my investment in fid-div---spartan us---fid puritan----fid blue chip growth,,,,,any ideas....thanks

scout

Contratulations!!!
With 20% going to your 401K Plan, you are ahead of the curve compared to your peers.
The one thing you may want to keep an eye on is the following.
In order to no lose your company match before the end of any year, you want to make sure that the percentage you are putting in every paycheck will not max you out for that specific year. 2008 it is 15,500 dollars. And if you are over 50 years old you are allowed another 5,000 per year.
401k limits 2008 & 2009 — 401k rules — 2008 & 2009 401k maximum contribution
Once you read this page and have this covered then you are left two other strategies.
1) Dollar Cost Averaging:
That is what you are doing every paycheck having a percentage of your money going to different funds of your choice. This works very well, when first getting started and building up your 401K.
2) Market Timing:
Since the idea is to buy low and sell high. The other thing you could do when prices are high is to have your contributions going to money market fund (also known as cash) and then investing your money in your choice of funds when there is a great buying opportunity. It helps to be close to a computer in the last half hour that the stock market is open, since here lately we have seen great volatility in the last 20 minutes. If you can call Fidelity on the phone that works also.
If you are sleeping during the day, because you work at night then you are better off staying with the dollar cost average strategy.
Good Luck.