Case Study - 401K Trading Account + 401K Non-Trading Account + ROTH Account

snowrider

A friend has one 401K Trading Account, one 401K Non-Trading Account, and one ROTH Account.  He asked whether he should move both 401K accounts to all cash, and what to do with his portfolio.  The following is my feedback:

Is it possible to merge those two 401K accounts into a single one?  If it is not possible, then you will need to calculate the percentage of the exposure in your portfolio in the stock market or bond, in order to get an idea about your current investment - how many percent of equity, how many percent of cash, and how many percent of debt.  With that clear picture of your portfolio, you will then be able to make a better decision by seeing that big pie.

Has the long term signal changed to down, my answer is NO for now even though my guess is that the bull run is ending soon.  My current long term position still keeps 10% of stock holding with 90% of cash.  I did not know that the bull could run this far.  I started taking profit because my profit target had reached.  Why do I still hold some stock?  Because it is just some light position.  If my guess is wrong, at least that 10% of holding will still make me some more profit.  Why don't I hold more than that 10%?  Because this price area is my distribution area.  I just wanted to lighted up my load.

About your ROTH account, it is good that you already have a strategy on that account (by keeping them all in dividend stocks).

NYQ

开小差

silicon_beaver

good post. Thanks.

Jeff

JohnHsu

xiaohehua

bucks

nice post

daveyhorl99

Q: why it is good to buy dividend stocks in Roth account?

Thanks laoda.

snowrider

daveyhorl99 发表于 2012-4-22 21:40
Q: why it is good to buy dividend stocks in Roth account?

Thanks laoda.

daveyhorl99 - I did not suggest that strategy.  It was just a strategy that my friend used.

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