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> If you try to move your 401k from stocks to bonds it will take 2 full trading days That is not a "will". I have never had an account of any kind where it t
by vonmoltke 9y ago
> If you try to move your 401k from stocks to bonds it will take 2 full trading days
That is not a "will". I have never had an account of any kind where it takes two business days to transfer money from one position to another.
> in that time the market can drop 30%
"Can" with what likelihood? In discussions like this (and hiring, and health care) people live to trot out very low probability worst cases couched with "can".
- brewdad 9y agoIf you are invested in mutual funds, like most 401ks are, your fund will only "trade" at the price at the close of the day. In this sense, an order to sell placed Wed morning won't actually sell until after market close Wed. Then Thursday you place an order to buy a new fund and the buy takes place at the close of Thursday business. You don't fully know exactly how many shares of the new fund you own until Friday morning. Every 401k I've dealt with allows you to place the buy/sell simultaneously, so you really only have a one business day turnaround, but I wouldn't be shocked to hear that some don't allow this.
- wocram 9y agoIf you hold ETFs sure, but most people are holding the mutual fund equivalents that only trade at the end of each day.