Re: Rebalance 401k Investments?

HW "Skip" Weldon wrote:

> On Sun, 9 Mar 2008 13:26:46 -0500, Tony Sivori <TonySivori@[EMAIL PROTECTED]
>
> wrote:
> 
>>The administrators of my 401k plan recommend frequent rebalancing
>>(equalizing all balances) of my chosen investments.
>>
>>This seems counter intuitive to me. Isn't it just throwing good money
>>after bad, to transfer money from successful stock to a losing one?
> 
> By "counter intuitive" do you mean that long-term, one ends up selling
> things that do well and buying things that perform less so?

Yes.

I guess I am somewhat suspicious of all people and companies that want to
sell me something. Obviously, they will put their own benefit before mine.
So it seems to me that siphoning off from the best investments and
subsidizing the least successful ones may just be a way of keeping the
casual investor like myself from seeing how bad the worst ones are doing.

-- 
Tony Sivori

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