Why is that? Do index funds only update once a day... perhaps when the market is already closed? Is this normal? All day today it was showing the previous trading day's values... till tonight. I presume tomorrow it will show tonight's value till the trading is done. Is this a correct assumption? What is the logic behind this... and why does this not apply to my 401K mutual funds?
2007-01-03 13:43:36 · 5 answers · asked by DoorWay 3 in Business & Finance ➔ Investing
Mutual funds normally only reprice once per day. Are your 401K funds exchange traded funds (ETFs)? Then you'd see the quotes on them as the day progressed...which would be the prices on the exchange, not the actual value (although the actual value probably doesn't vary very much from the share price). Outside of ETFs, though, I don't know of any mutual funds that reprice midday.
2007-01-03 13:56:27 · answer #1 · answered by Alan 3 · 0⤊ 0⤋
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2016-12-24 20:17:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Here is one thing to keep in mind about the Roth IRA account. There is never any tax on it where as there is on your 401k. This becomes important when considering your asset mix. Income producing investments are taxed at the full tax rate as will be your 401k. Hence it makes sense to invest at least some of your 401k in income producing assets--bonds, LPs, REITs. The income from each of those is taxed at the full tax rate anyway. Now since the Roth IRA is never taxed, it also makes sense to put those types of assets into the Roth IRA also. And also equity investments. What you neglected to mention are investments outside of these two vehicles. If you have some, they should be investments that would be taxed at the capital gains rate--equity investments. Actually, unless you are in the highest tax bracket it makes sense to have a portion of your equity investments outside of a 401k. By doing so your total tax bill will be decreased, especially if you are a long term investor. If you have the least hankering to invest some of your money in gold and silver those absolutely should be within a Roth IRA. Both are taxed as collectibles otherwise. Another thing to consider in regard to the 401k is that in future years the tax rate might actually be higher, perhaps much higher, than it currently is. Since you really have no choice of placing non-mutual fund investments within a 401k except for perhaps company stock, it certainly does make sense to invest Roth IRA money in company stocks rather than mutual funds. But be careful. It is very tempting for many to speculate with their Roth IRA account especially short term trading which otherwise would be taxed at the full tax rate. That would be a good way to reduce that value of the Roth account. Be just a little cautious. Invest in the likes of MCD, WMT, JNJ, BDX, KO, etc. Or maybe ETP with its 8% dividend or PAA with its 7.5% dividend. And do not invest it in fewer than 5 different companies.
2016-05-23 01:12:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Even with yoru 401k mutual funds, they will only change everyday. Prices are as of close and don't matter during the day.
2007-01-03 14:10:23 · answer #4 · answered by KIDD3422 3 · 0⤊ 0⤋
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2007-01-04 00:55:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋