Bogleheads :: View topic - strat to "stay in equities" during 401k ...

earlier in the year I "successfully" moved my IRA to my 401k, and did my first ever 'backdoor roth' in my post-tax 2010 tIRA + 2011 post-tax tIRA-->Roth. awesome. I'd like to do the same now in my wife's IRA (2 prior employers rollover 401ks in there) and everything looks fine technically

I'd like to "stay in the market" which means... maintain as equal a weighting in equities as possible right? This requires I underweight bonds considerably to do so. Is that the preferred strategy? My AA is 60/40, and its really closer to 60/30/10 (10=cash)

anyways, I'm at risk of the bond market moving up as much as the equity market moving up... but equity moves tend to dwarf bond moves so if I cover my equity side I'm good right?

Here is my plan:
wait till 9/8 for bond distribution(s) to post

1) In my wife's current 401k (16k balance, 50/50) move 8k bonds into equities
=+8k equities, -8k bonds (FSTMX)
timeline: takes 1 day to settle

2) In my 401k, I transfer the current 30k balance (50/50) to my 401k self-directed brokerage, and buy equities (30k) = +15k equities net
timeline: takes 4 days to settle (approx)

3) In my self directed brokerage, I exchange bonds for equities (trade 39k BIV for VXUS) = +39k equities
timeline: intraday

4) We start the rollover process from her fidelity IRA to her fidelity 401k, move everything to cash and xfer. In-kind transfer impossible as current investments do not match the 401k plan offer. Current balance is 91k, 22k bonds, 69k equities
timeline:2 weeks to 4 weeks, who knows

5)401k ongoing investments will be split 50/50 not that it makes much difference. (~6k/month, pre+post+match)

6) Invest her 401k per our AA when rollover is complete, move my 401k back to where it was

So with this plan I balance the -69k equity sale by buying 69k equities mostly in my 401k

I will probably adjust the # down a little bit to 60k equities instead of 69k equities on a hunch that I don't want to extend my risk of being 'out' of the bond market as well. If the market takes a nice tumble in this 30 day period I may bump current contributions to 100% equities otherwise do nothing

Is this plan reasonable? What would you change?

Taxable space is currently in either Ibonds I dont want to touch or long-term foreign index funds I don't want to touch, and cash reserves for closing on a refinance in about 2-3 weeks

thank you

Source: http://www.bogleheads.org/forum/viewtopic.php?t=81842&start=0&mrr=1314988378

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