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Home > time to rebalance?

time to rebalance?

November 1st, 2006 at 06:25 am

I was looking at my 401k quarterly statement and wondering if I needed to rebalance it. I basically just set everything when I opened it 8 years ago and haven't looked bad. I've had my good quarters and bad quarters. But overall I'm still quite pleased that even though I lowered my percentage of contribution (work doesn't match anything), I still had an investment gain of 3 times what my contribution was for the last quarter.

So here's where I stand right now:
Balanced fund. Originally set at 50% currently at 49.73%
Cash Reserves. Originally set at 5% currently at 4.41%
Common Stock Fund Z. Originally set at 20% currently at 20.49%
Large Cap Growth. Originally set at 20% currently at 18.64%
Technology. Originally set at 5% currently at 6.65%

When I make my contributions, the original percentage is how it gets applied to the various funds. But when you look at the grand totaly, the actual percentage each fund contributes to the total is the current percentage.

The categories break down as follows:
Cash Reserves Fund is a Money Market
Balanced Fund is Moderate Allocation
Common Stock Fund Z is Large Blend
Large Cap Growth Fund is Large Growth
Technology Fund is Specialty-Technology

I have no real idea what any of that means. It sounds like it's mostly stocks with perhaps a few bonds. I'm honestly not sure. We changed companies in the mix, they just transfered our stuff over to their comperable funds. Then that company changed hands and merged with someone else. It's really confusing. Half the time I don't know that it's my quarterly statement in the mail til I open it. Though the size of the envelope usually gives it away.

I have a list of all the possible funds, their current quarter returns, and their predicted, or maybe past, returns. I just wish I knew more about this stuff to figure out if I should change things up or not. It seems to be doing ok on it's own...

1 Responses to “time to rebalance?”

  1. Broken Arrow Says:

    More important to me would be the fact that your employer doesn't match anything. If that's the case, then I would be tempted to roll it into a Roth IRA. Because then you can put aside all the confusion all this changing hands has caused. That and you would gain a bit more flexibility with the Roth.

    Other than that, your funds looks about right for someone in their 30's.

    However, before doing anything, I would also recommend to double check with the other, more knowledgeable individuals in the forums.

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