In early June 2011, I cashed out 2/3's of our daughter's mutual funds in her college accounts. At my spouse's request, we kept 1/3 of the accounts fully invested in the mutual funds. As it turned out, I sold off too soon. The invested account gained enough in July to be 7% higher than the cash accounts. It's too bad that we didn't sell the account invested mutual funds at that point. In August, the mutual fund account lost its 7% advantage and then some. The invested account is now about 15% below the cash account.
The college accounts have a one time per year reallocation restriction. So I won't be able to move back into mutual funds until 2012. But given the current performance of the stock market, I think I can wait that long before reinvesting funds in the stock market.
For more on Crossing Generations, check back every Thursday for a new segment.
This is not financial or investing advice. Please consult a professional advisor.
Copyright © 2011 Achievement Catalyst, LLC
No comments:
Post a Comment
Comment guidelines: My Wealth Builder will publish comments that are about the topic and do not contain inappropriate language. My Wealth Builder reserves the right to edit or delete comments for any reason which includes those that have advertising (either for a product, website, or blog), contain inappropriate language or are not about the topic.