My 401(k) Rollover was Perfect

My Rollover wasn’t as painful

When I switched jobs earlier this year, I was very good about rolling over my 401(k) plan from my old job. I did it as soon as I can and completed all the paperwork in a timely way. But the whole process meant that my money was out of the market for a month or so, and it drove me crazy. Being a long-term investor meant riding the highs and lows and never having to miss out on any of it. I have mentally prepared myself to handle everything that comes with that.

Well, it turns out that I accidentally timed the market to perfection. It wasn’t my intention and I would never try to do it again—no one can consistently do it. I checked my 401(k) account and, sure enough, I am up 8% this year already while the S&P index is down around 4%. Considering I am invested mostly in index funds, this is great news.

Part of the reason I’m doing well is because I’m diversified—I don’t just own an S&P index fund and that’s it. I have an international index fund, a mid-cap fund, and a large-cap fund. Wither way, I could sit here and tell you that the reason I’m doing well today is because I did this or I did that. But really this is all about luck, don’t think I don’t know that. If I hadn’t moved my 401(k) around and taken it “off the market” for a little over a month, I would be down for sure.

The lesson to learn here is an old one but good one: you can’t time the market. And when you happen to do it, consider yourself lucky and don’t try to hit another homerun. Karma will eventually catch up to you.

Anyone else have some lucky (or unlucky) stories surrounding 401(k) accounts or other investments?