Interfund transfer question

[Telisa827]

I had too much money invested in only the G fund for a long time. I did a contribution allocation change awhile back but I am interested in doing an interfund transfer as well once I understand it better.

From what I understand, if I have $100,000.00 divided as 50% G 20% C 20% S 10% I and I want to divide all 4 funds evenly as 25% each instead, I believe the next day I would just have more shares of C S I and less of G, still leaving me with the same $100,000.00.

My question is when would the best time be to do the interfund transfer? Should I do it when the C S and I are at lower amounts or does it matter?

Thanks,

Telisa

 

[Bullitt]

Depends on your goal. Many on this website try to buy at bottoms and sell (go to 100% G) at tops.

Your case sounds as if this is the allocation you would like to go with for a longer time frame in which case it won't make one bit of difference when you do it. It's really nothing more than an arbitrary re-balancing. If you do it today before noon, you get today's closing price. If you do it after noon, then you get tomorrow's closing price.

 

[Telisa827]

Yes, I still have quite a long time to go so it is long term. Thanks. I am not looking to do a bunch of IFTs, just don’t want so much in the G.