Transferring 401K to Traditional IRA in this volatile market
We have several small 401Ks from previous employers and one bigger one from my DH's last employer. We want to consolidate these for ease of access and also to make it easier to analyze our asset balance. I also have an employer based 401K at the company we are choosing to roll everything over to that I am planning to convert to a traditional IRA (previous employer so I can do this). DH has a traditional IRA and we both have a Roth at the company we are putting all the money in. The plan is to end up with one Roth and one traditional IRA each, plus our current employers' plans which are not at the same company we're moving the money to.
It takes awhile to sell from one company, get the assets sold and a check written to the new company (the check will get written right to the new company on our behalf and there will be no tax implications for us as far as I know). This process will take approximately 2 weeks per account if things go smoothly. With the market being so volatile, missing 2 weeks is concerning to me. The smaller accounts don't bother me so much, but the bigger one makes me nervous due to the amount of money and its current allocation is really not what we need (DH chose to put a large %age in a small cap intl fund before we got educated on these things). I think to minimize any effect, I would like to move them slowly, one at a time. I wonder if I could break the bigger account up into 2-3 different transactions to minimize any market jumps that might happen during the time we are doing this. I guess I am working under the assumption that if the US market makes a significant move, it will affect the foreign markets in short order and everything will go up or down at basically the same time. Is that a fair assumption given the world economy right now? Should I rebalance the larger account now and leave it there until the market is less volatile?
Does this sound like an ok strategy given the current market situation? That way we don't have too much out of the market at any given time. There is also the issue of choosing funds for them to go into - I guess they often recommend parking the money in a money market and choosing later, but again, the volatility makes me want to get back into funds ASAP. We have a good idea what we want our allocation to be so it should be fairly easy to get it close to what we want as soon as possible once the money is in there, if not at the time of actual transfer get it into our desired funds. I do not want to try to time the market and never have - if it was ever possible before, I imagine it is infinitely more difficult these days. I just want to be in the market for as many days as possible, for some reason that feels like the smartest thing to do right now.
One other thing I am trying to figure out is whether to allocate the same asset balance in each of our accounts according to our goals and risk tolerance, or let's say do the large caps and bonds in one of our accounts and the mid, small and international in another account or however it reasonably breaks down for the asset balance we desire for the other account. Any advice on this?
Any advice on any of this? The advice is greatly appreciated! Thanks for reading and taking the time.