401K Methodology

What is the correct methodology or process for doing the following in my
401K in 2007DLX? I have a 401k dating back to 1993 and tracking each
purchase.

Sometimes my employer will eliminate a fund (i.e. XYZ) and add an equivalent
new fund (i.e YZX). If I were to swap 1000 shares of XYZ at $2 each for
2000 shares of YZX at $1 each, would you recommend that,
- I first sell the 1000 shares of XYZ and then purchase YZX?
- Remove 1000 shares of of XYZ, and then add shares of YZX?

Likewise,
- When should I use reinvest dividend versus reinvest interest in my 401K?

Cal
Sun Dec 17 13:35:14 CST 2006

In microsoft.public.money, Joe Doe wrote:

>What is the correct methodology or process for doing the following in my
>401K in 2007DLX? I have a 401k dating back to 1993 and tracking each
>purchase.
>
>Sometimes my employer will eliminate a fund (i.e. XYZ) and add an equivalent
>new fund (i.e YZX). If I were to swap 1000 shares of XYZ at $2 each for
>2000 shares of YZX at $1 each, would you recommend that,
> - I first sell the 1000 shares of XYZ and then purchase YZX?
>- Remove 1000 shares of of XYZ, and then add shares of YZX?

First sell the 1000 shares of XYZ and then purchase YZX would be
better.

>
>Likewise,
>- When should I use reinvest dividend versus reinvest interest in my 401K?

It does not really matter for this purpose. For a mutual fund that
invests in stocks, I would prefer reinvest dividend. If it were a
bond fund, I might use the other.