Gyroscopic Investing

What is the best way to funnel money into the PP part of your 401k from your plan contributions. Do most folks have it go into cash and then periodically allocate it. If so do you split the allocations across the asset classes each time? Looking for ideas.

I just have it go into the funds. I don't have access to a long term treasury or gold in my 401k so to get around that I just allocate the bond portion in my 401k fully into total bond market and hold enough gold to cover all my accounts including my 401k in taxable. Good enough is good enough. In my IRA's and taxable accounts I hold the long/short barbell.

I have to transfer funds into the brokerage side of my 401k to get to the “good stuff”, so I do tend to let cash contributions build up a bit and then transfer it occasionally. When I do that I typically spread it among the assets to bring things into balance or close to it.

My only advice is that there is always an asset you aren’t thrilled about buying, so if you let cash build up too much it just causes more anxiety because the dollar amounts are larger. But it’s all just numbers.

If I’m not mistaken, this method is something less than 100% optimal, so if that’s important to you, you might want to make adjustments. It works for me.

All my 401(k) contributions go to brokerage sweep fund (cash), then when it hits 35% I rebalance to 15% cash and 28% stocks/bonds/gold. That keeps each piece at roughly 25% when averaged over time.

Be sure to ask your employer and your 401k provider if they can add a brokerage window to your plan. I found that to be the quickest way to convert my pre-existing asset allocation to an orthodox HBPP. In fact, until I asked, I did not know that my plan already provided for a brokerage window.

Either approach is probably fine.

I use a brokerage window and am required to hold some assets in plan funds. I use the plan funds for cash and stocks and the brokerage window for gold and long-term bonds. I find it most convenient to let contributions accumulate in the cash fund, and then rebalance roughly annually.

I'm so jealous of all of you and your brokerage windows, grr lol.

pmward wrote: ↑Mon May 20, 2019 6:00 pm I'm so jealous of all of you and your brokerage windows, grr lol.

Have you called your employer's 401(k) administrator and asked them to consider offering a brokerage window? Maybe they've already received a few similar inquiries, and yours will be the tipping point

ppnewbie wrote: ↑Fri May 17, 2019 2:00 pm What is the best way to funnel money into the PP part of your 401k from your plan contributions. Do most folks have it go into cash and then periodically allocate it. If so do you split the allocations across the asset classes each time? Looking for ideas.

Having 401(k) as a part of PP could be pain. First, most of those plans do not have necessary funds or, if they do, the expense ratios on those are rip-offs. But pretty much any plan has funds tracking SP500 and cash. Should be able to contribute to cash portion and rebalance to stocks when necessary to rebalance the whole PP. Yet, it might be difficult to achieve.
The only advantage of 401k is employer matching contribution... The rest is nearly scam. They might even try to talk you into rolling your other tax differed savings over to 401k plan.