Investing 102

[GregWeld]

Yeah -- OXY is killin' ya.... and that's what happens when you only have four or five stocks. One is a larger percentage of the overall performance.... if you had 10 it wouldn't have as much effect... 20 stocks and you'd hardly even notice it.

That's why we play "are you diversified"! LOL


Keep at it - you're doing fine!

[WSSix]

Thanks Greg. I did the calculations as if I didn't own OXY and the numbers were much better than my mutual fund. I'll be working on diversifying in the coming months. First, I need to ditch my savings for a house etc account though. It's at only 0.4% now, lol.

[nicks67ca]

Greg, I have enjoyed reading this thread. You make me think more and more about my retirement years in 2045 haha! I was purchasing stock from my previous employer through a ESPP where i was buying last years average price less 15%. It was always hovering around $50 or so then they acquired another company ~$4B and doubled overnight. The stock price then went to high 70's. I was really happy when i saw the values of my shares. What was also really cool was I could log into the system and see the dividend payments...man they really start to add up.

I was curious your thoughts on utilizing company match 401k. I always put in to get the company match maxed out in the last 2 companies i worked for. I figured it was "free money". What i didn't like is the cookie cutter plans you can invest in. They utilize plans based on desired retirement date which started aggressive and would get less aggressive as your retirement years approached. I have been averaging ~8% return but feel like I have less control then going out and picking 25 stocks. Another question is i am part of retirement plan through a retirement service (wellsfargo) do i actually own the stocks in the plan or do i own the plan and the service is bundling the stocks internally? I got thinking because i don't receive a dividend payment on the plan stocks. I never really paid attention till now but i always put in knowing deep down i need to have a retirement plan.

[Bucketlist2012]

Originally Posted by GregWeld

Yeah -- OXY is killin' ya.... and that's what happens when you only have four or five stocks. One is a larger percentage of the overall performance.... if you had 10 it wouldn't have as much effect... 20 stocks and you'd hardly even notice it.

That's why we play "are you diversified"! LOL


Keep at it - you're doing fine!

Excellent Post, as usual. Yes I have 17, and 14 are Dividend payers...

Some Ying, some Yang, so the ride is smoother. But Reviewing it and knowing you need to adjust it is half the battle..

I know some people that haven't looked at what they own in years, and don't even know what they own..Let alone how it is doing.

[WSSix]

Originally Posted by nicks67ca

Greg, I have enjoyed reading this thread. You make me think more and more about my retirement years in 2045 haha! I was purchasing stock from my previous employer through a ESPP where i was buying last years average price less 15%. It was always hovering around $50 or so then they acquired another company ~$4B and doubled overnight. The stock price then went to high 70's. I was really happy when i saw the values of my shares. What was also really cool was I could log into the system and see the dividend payments...man they really start to add up.

I was curious your thoughts on utilizing company match 401k. I always put in to get the company match maxed out in the last 2 companies i worked for. I figured it was "free money". What i didn't like is the cookie cutter plans you can invest in. They utilize plans based on desired retirement date which started aggressive and would get less aggressive as your retirement years approached. I have been averaging ~8% return but feel like I have less control then going out and picking 25 stocks. Another question is i am part of retirement plan through a retirement service (wellsfargo) do i actually own the stocks in the plan or do i own the plan and the service is bundling the stocks internally? I got thinking because i don't receive a dividend payment on the plan stocks. I never really paid attention till now but i always put in knowing deep down i need to have a retirement plan.

Company match anything is an annual pay raise since it's based on percentage of your pay. It's free money, take it.

I'm in the same boat with being locked into what my 401k is invested in for the most part. Mine isn't a targeted retirement account. It's simply a selection of mutual funds and I pick what level of investment I want, be it safe, moderate, or aggressive. What I would recommend is exactly what I'm doing. Put in the minimum amount needed to get the maximum company match, the free money, and then take whatever amount more you want to invest in retirement and open another personal account that you control. You'll just have to be diligent about sending the money to that account on your own instead of having the money removed automatically.

I can't answer your Wells Fargo question though, sorry.

Welcome to the thread and good luck.

[nicks67ca]

Originally Posted by WSSix

Company match anything is an annual pay raise since it's based on percentage of your pay. It's free money, take it.

I'm in the same boat with being locked into what my 401k is invested in for the most part. Mine isn't a targeted retirement account. It's simply a selection of mutual funds and I pick what level of investment I want, be it safe, moderate, or aggressive. What I would recommend is exactly what I'm doing. Put in the minimum amount needed to get the maximum company match, the free money, and then take whatever amount more you want to invest in retirement and open another personal account that you control. You'll just have to be diligent about sending the money to that account on your own instead of having the money removed automatically.

I can't answer your Wells Fargo question though, sorry.

Welcome to the thread and good luck.

Thanks...now that I think about it i think it is a selection of mutual funds just like you stated. I have a Roth IRA that opened as well that I contribute to out side the company plan.

Another perspective is once you reach retirement you can take the mutual funds and invest in other stocks, cds, ect.

Speaking of CDs an interesting thing my grandparents use a CD as their income. It was paying around 7% 10 years ago. Now they are getting 3%. They planned for low rates as a worse case but it it proves important to diversify even during retirement years.

[GregWeld]

Yeah Nick --- Company match is "instant free money"... max out that plan if possible! It's free money that compounds over time.

The key then is --- what you put that in to. That's where most blow it... and all the free and tax deferred is eaten alive from lack of interest on the part of the person.

Get on Google or Yahoo Finance sights -- do some research on the funds you can invest in and try to at least give yourself a fighting chance to make it grow.

The difference between down 5% and up 5% over time is absolutely HUGE and your retirement happiness depends on YOU paying attention.

Make waves if you have to.... to get your company to change or to increase what they offer. Get your other guys there to start looking -- and if the choices aren't good -- you can effect some changes perhaps. Nicely - done correctly etc.

[Bucketlist2012]

Keeping an eye on my 401K....20.57% return.

Nothing fancy because my choices are limited..Just a Mutual Fund..

My Schwab personal account is where I can pick what I really want..

[WSSix]

That reminded me to check on my company matched 401k. Yeah, I know I should have thought about it sooner but it's pretty much on auto pilot since I can only select from a few mutual funds. I'm doing it mainly for the match anyway. From the start of this year PRR is + 13.7% from the start of last year +12.3%.

I need to step up my game on my stock selection if I plan to beat my mutual funds. They are kicking my ass right now but I win either way

I can't even begin to figure out just how well my ESPP is doing because I get the stock at a discount. I'm going to have to dig around at it some more see if I can navigate the website or else I'm going to have to look back at my reports I get when a purchase is made and do the math myself. It's green and says I've made money though. Winning!

[bdahlg68]

For those maybe wanting some tools to better track a number of accounts (401k, Brokerage, ....), I would strongly recommend Wikinvest. It has mobile apps and a website. While the mobile app really only lets you see quotes and $ change on a total account, the website gives some interesting performance info. I really like it just thought I'd put it out there for others to take a look at!