Investing 102 - Lateral-g Forums

Bow Tie 67 · #1 04-03-2012, 06:50 AM

I just found out I have the ability to self direct 50% of my 401k through Chase Investment services.

Fees are $8.95 per trade

$100 per account per year maintenance fee.

I feel like I just won the lottery!!

Are short term cap gains a non-issue in a self directed 401k? Or how does this work?

**GregWeld** · #2 04-03-2012, 07:18 AM

Quote:

Originally Posted by Bow Tie 67

I just found out I have the ability to self direct 50% of my 401k through Chase Investment services.

Fees are $8.95 per trade

$100 per account per year maintenance fee.

I feel like I just won the lottery!!

Are short term cap gains a non-issue in a self directed 401k? Or how does this work?

There is no tax due on 401k's until you withdraw.... and then you're paying INCOME TAX on the withdrawals... since money that is put into the 401 is PRE TAX. So you owe taxes on the whole enchilada. Obviously the idea there is that you'll save more - compounding more - and will withdraw when you're at a lower rate.

Don't worry about the LTCG or STCG etc.

**Sieg** · #3 04-03-2012, 07:20 AM

Quote:

Originally Posted by Bow Tie 67

I just found out I have the ability to self direct 50% of my 401k through Chase Investment services.

Fees are $8.95 per trade

$100 per account per year maintenance fee.

I feel like I just won the lottery!!

Are short term cap gains a non-issue in a self directed 401k? Or how does this work?

Winning! Thank your company for having an option plan.

CRCRFT78 · #4 04-03-2012, 01:42 PM

Out of curiousity, how do some of you decide how many shares to buy? I base it on what I can afford given the amount of money I have at that particular moment. For example, Greg, you picked up 400 shares of Apple & 1000 shares of Chipotle Mexican Grill, how did you come up with those numbers? Why not 500/800 shares? Just wondering everyones technique when it comes to picking shares.

**Sieg** · #5 04-03-2012, 01:46 PM

Quote:

Originally Posted by CRCRFT78

Out of curiousity, how do some of you decide how many shares to buy? I base it on what I can afford given the amount of money I have at that particular moment. For example, Greg, you picked up 400 shares of Apple & 1000 shares of Chipotle Mexican Grill, how did you come up with those numbers? Why not 500/800 shares? Just wondering everyones technique when it comes to picking shares.

Bow Tie 67 · #6 04-03-2012, 01:54 PM

Quote:

Originally Posted by Sieg

Good one, Lol.

I added to my STD position today which drops my price per share, not to mention the next dividend, if history repeats itself, will be the big one of the year. " fingers crossed "

**WSSix** · #7 04-03-2012, 03:54 PM

For me, I simply bought as many shares as the amount I had to spend would buy.

**GregWeld** · #8 04-04-2012, 07:27 AM

Quote:

Originally Posted by Bow Tie 67

Good one, Lol.

I added to my STD position today which drops my price per share, not to mention the next dividend, if history repeats itself, will be the big one of the year. " fingers crossed "

I had 20,000 shares and added 10,000 today. I waited until they were down a $1 from my average cost... to add (average down) to this position. They go "ex dividend" on the 10th and they're paying 11% at these prices (remember the percentage of div goes UP when the stock price goes down).

Personally -- I wouldn't "talk up" this kind of a position because of the volatility... and the "unsure" footing european banks are on. Actually the unsure footing the euro GOVERNMENTS are on..... but I think the risk/reward is decent over the long run. I look at it this way -- this stock has a higher chance of going up 25% than Microsoft does.

Although MSFT has had a decent run lately... so that's an unfair statement.

**GregWeld** · #9 04-04-2012, 12:55 PM

Hey -- How's that gold trade working out for you guys??

OMG....

**GregWeld** · #10 04-03-2012, 04:14 PM

Quote:

Originally Posted by CRCRFT78

Out of curiousity, how do some of you decide how many shares to buy? I base it on what I can afford given the amount of money I have at that particular moment. For example, Greg, you picked up 400 shares of Apple & 1000 shares of Chipotle Mexican Grill, how did you come up with those numbers? Why not 500/800 shares? Just wondering everyones technique when it comes to picking shares.

It's a good question but one without a correct answer....

I actually "adjusted" yesterdays purchase after thinking about it -- and sold 500 CMG and bought 200 more AAPL.... so now have 500 CMG and 600 AAPL...

I look at my cash -- and the account that the stock I want to buy is in... and then my LIMIT is 2 or 3% of investable funds. Most people use 5% - but 5% for me gets to be a pretty big $ amount... so it's all just based on what your situation is.

I ALWAYS try to keep a pretty sizable cash position as well.... cash is always king -- you never have to sell into a down period (that can last 2 or 3 years) and you always FEEL BETTER having cash... so I could make that a consideration as well.