Mirror Finish Polishing ~ 1-816-529-6089 ~ sales@mirrorfinishpolishing.com ~ mirrorfinishpolishing.com For the best rate on home, auto, life or business/commercial insurance call me at 888-959-0955, cell 636-734-1310 or bricehazelwood@weiss-ins.com. Never Done Garage - donewhenimdead.com Peerless Automotive Reconditioning - 1155 W. Dennis Ave, Olathe Ks, 66061 - 913-893-1201 Mark H. Epstein ~ The Epstein Law Firm, LLC ~ 913-396-5123 Wilkes Automotive ~ wilkesautomotive.com ~ 246 Marion St, Olathe, KS 66061 ~ 913-254-7171 Skandalous Inc ~ www.skandalousinc.com DIY Auto Repair Inc ~ www.diyautorepairkc.com ~ 11509 Strangline Rd, Olathe KS 66062 ~ 913-226-3806 Your advertisement here! The Law Offices of Jeremiah Johnson, LLC ~ 104 E. Poplar, Olathe, KS 66061 ~ (913)764-5010 ~ www.kcatty.com - www.johnsoncountydui.com ~ jeremiah@kcatty.com Santa Fe Body, Inc ~ 8717 Lenexa Drive, Overland Park, KS 66214 ~ (913) 894-6090 House of Boost LLC Nude? HouseofHID.com - The #1 source for HID The Print Shop KC 816.200.6694 or Ryan@RMD-Photography.com the art of tyleR ~ http://tyleR.bigcartel.com ~ TYLERcoey.com ~ MUTTtoy.com ~ MUTTtoy@gmail.com W-K Chevrolet Buick Pontiac Cadillac GMC ~ 3310 W. Broadway, Sedalia, MO 65301 ~ 800-382-5088 ~ Cell 660-553-8928 ~ dustin@wkchevy.com ~ www.wkchevy.com

Go Back   KCSR - THE Kansas City Forum > General Forums > Business, Finance

Reply
Thread Tools
Unread 2017-01-26, 08:32 AM   #1
Rob
 
Rob's Avatar
 
Join Date: Apr 2007
Location: Grain Valley
Posts: 6,989
Post Thanks / Like
Thanks (Given): 170
Thanks (Received): 149
Likes (Given): 827
Likes (Received): 848
Dislikes (Given): 12
Dislikes (Received): 23
Default What do you put your 401k toward?

Looking to get some input from anyone who has had some good luck in the past

What kind of investments do you put your 401k toward?

Right now I put a portion of my contribution in a roth ira and the rest into Cerner stock, and Cerner matches my contribution

So far Cerner stock has been good for me, I've earned around 9% in the last year. But I'm looking to see what else people have had good luck with so I can expand my portfolio. I also have some Apple stock, I've made money on it but maybe only a few hundred dollars
__________________
Rob is offline   Reply With Quote
Unread 2017-01-26, 09:55 AM   #2
mild83
 
Join Date: Jan 2010
Location: cabrini green
Posts: 14,246
Post Thanks / Like
Thanks (Given): 925
Thanks (Received): 335
Likes (Given): 6331
Likes (Received): 2725
Dislikes (Given): 128
Dislikes (Received): 131
Default

So for the first 11 years I was at the same company. My distribution was:
small growth 35%
Target fund 2045 33% (I only chose this because it has a steady return and low fees)
Diversified Intl. 14%
Bonds 17%


It's done a little less than I would have liked. I just started with a new company and have done 100% in a target fund 2035 for the time being. I really need to sit down and look at my options. My current company offers a 5% stock discount, but I won't qualify for another 5 months or so. Not sir if I'll participate, there's no dividend and there's a possibility for a lot of fluctuations over the next 12+ months.
mild83 is offline   Reply With Quote
Unread 2017-01-26, 10:07 AM   #3
Scooby24
Super Moderator
 
Join Date: May 2004
Location: Olathe
Posts: 51,616
Post Thanks / Like
Thanks (Given): 49
Thanks (Received): 689
Likes (Given): 341
Likes (Received): 3959
Dislikes (Given): 27
Dislikes (Received): 40
Default

I let my advisors manage my distributions.

They are growing nicely right now, actually wondering if I shouldnt consider using them to pay off my mortgage and save the interest costs and put would be mortgage into retirement tof build it back up in a hurry.
__________________
-Greg
'17 Tacoma TRD Off-Road
Scooby24 is offline   Reply With Quote
Unread 2017-01-26, 10:53 AM   #4
turbotuner20v
 
Join Date: Nov 2005
Posts: 15,583
Post Thanks / Like
Thanks (Given): 22
Thanks (Received): 83
Likes (Given): 50
Likes (Received): 1009
Dislikes (Given): 4
Dislikes (Received): 10
Default

I'm in a date target retirement fund right now + some company stock/match. 50/50 split between 401k and Roth. I buy most of my company stock at 15% discount through our program or get options as comp.

Date fund has done the following average annual returns with a $0.76 Exp Ratio:
1yr - 7.63%
3yr - 4.61%
5yr - 11.12%
10yr - 5.64%
life - 9.17%

Company stock has done:
1 Yr - (-21.27%)
3 Yrs - (-5.28%)
5 Yrs - 9.12%
10 Yrs - 15.33%
Life - 18.78%


I try to let it sit and not mess with it.

I manage other stocks through a Schwab account. Mostly Apple right now, but should probably start looking at investments that align with policies that will take place over the next 4 yrs.

Last edited by turbotuner20v; 2017-01-26 at 10:59 AM..
turbotuner20v is offline   Reply With Quote
Unread 2017-01-26, 10:55 AM   #5
BuddyLee
 
BuddyLee's Avatar
 
Join Date: Jul 2006
Location: Lenexa, KS
Posts: 28,681
Post Thanks / Like
Thanks (Given): 24
Thanks (Received): 257
Likes (Given): 61
Likes (Received): 1932
Dislikes (Given): 4
Dislikes (Received): 35
Default

I don't have a 401k, IRA, or any other retirement vehicle. Well I have a pension that just started but that's it.
__________________
XBL: Buddyl33
PSN: KC_Buddyl33

BuddyLee is offline   Reply With Quote
Unread 2017-01-26, 11:01 AM   #6
Scooby24
Super Moderator
 
Join Date: May 2004
Location: Olathe
Posts: 51,616
Post Thanks / Like
Thanks (Given): 49
Thanks (Received): 689
Likes (Given): 341
Likes (Received): 3959
Dislikes (Given): 27
Dislikes (Received): 40
Default

How have you gone so long without one?
__________________
-Greg
'17 Tacoma TRD Off-Road
Scooby24 is offline   Reply With Quote
Unread 2017-01-26, 11:03 AM   #7
mild83
 
Join Date: Jan 2010
Location: cabrini green
Posts: 14,246
Post Thanks / Like
Thanks (Given): 925
Thanks (Received): 335
Likes (Given): 6331
Likes (Received): 2725
Dislikes (Given): 128
Dislikes (Received): 131
Default

Quote:
Originally Posted by BuddyLee View Post
I don't have a 401k, IRA, or any other retirement vehicle. Well I have a pension that just started but that's it.
Federal though, right?

As long as it's still there, you're set.
mild83 is offline   Reply With Quote
Unread 2017-01-26, 11:30 AM   #8
BuddyLee
 
BuddyLee's Avatar
 
Join Date: Jul 2006
Location: Lenexa, KS
Posts: 28,681
Post Thanks / Like
Thanks (Given): 24
Thanks (Received): 257
Likes (Given): 61
Likes (Received): 1932
Dislikes (Given): 4
Dislikes (Received): 35
Default

Quote:
Originally Posted by Scooby24 View Post
How have you gone so long without one?
It wasn't always that way. I had one. Then I changed jobs and due to the debt that was piling on after marriage #2 I didn't contribute. During the course of marriage #2 I turned a blind eye to the fact that my ex was a gambling addict. Well that led to us finding our way into a deep, dark, irrecoverable hole of debt that was either cash it in and get us out, or sell the house and move into an apt.

I cashed it in, wiped out the debt. Well lessons weren't learned and that debt built back up due to the same reasons. Well ultimately enough was enough and I got out before I was financially ruined. I walked away from a marriage and the mother to my child with around 30k in revolving debt, a car payment, and a mortgage w/house.

Fast forward a bit over 3 years from then and I can say that here in about 3-4 mos I will be completely debt free except for a mortgage that is 25% of our household take home. This was because I have been pouring extra money into getting out of that debt with the goal of then turning around and putting that into retirement.

Well yeah it sucks, I'm now 40 years old with pretty much no retirement. That's why I took the job I took back in Nov of 2016. I now have 18% of my salary put into a pension which is fully vested in 5 years, along with any previous SS contributions. I will being contributing to my 401k at this point getting the max match. I also can purchase our stock at a 15% discount which I also plan on doing.

Hopefully this hyper aggressive saving compared to what I haven't been able to do, will help make up for lost years.
__________________
XBL: Buddyl33
PSN: KC_Buddyl33

BuddyLee is offline   Reply With Quote
Unread 2017-01-26, 11:32 AM   #9
BuddyLee
 
BuddyLee's Avatar
 
Join Date: Jul 2006
Location: Lenexa, KS
Posts: 28,681
Post Thanks / Like
Thanks (Given): 24
Thanks (Received): 257
Likes (Given): 61
Likes (Received): 1932
Dislikes (Given): 4
Dislikes (Received): 35
Default

Quote:
Originally Posted by mild83 View Post
Federal though, right?

As long as it's still there, you're set.
Railroad
__________________
XBL: Buddyl33
PSN: KC_Buddyl33

Post Thanks / Like - 1 Thanks, 0 Likes, 0 Dislikes
Thanks mild83 thanked for this post
BuddyLee is offline   Reply With Quote
Unread 2017-01-26, 12:17 PM   #10
Rob
 
Rob's Avatar
 
Join Date: Apr 2007
Location: Grain Valley
Posts: 6,989
Post Thanks / Like
Thanks (Given): 170
Thanks (Received): 149
Likes (Given): 827
Likes (Received): 848
Dislikes (Given): 12
Dislikes (Received): 23
Default

Quote:
Originally Posted by Scooby24 View Post
I let my advisors manage my distributions.

They are growing nicely right now, actually wondering if I shouldnt consider using them to pay off my mortgage and save the interest costs and put would be mortgage into retirement tof build it back up in a hurry.
That's a tough one...but I'm guessing the amount of interest you save would be more than any interest you might earn on your 401k, unless for some reason you have like over a million + in there

If you planned on putting your entire mortgage payment back into the 401k every month after it's paid off....I would say that would be worth doing it
__________________
Rob is offline   Reply With Quote
Unread 2017-01-26, 12:21 PM   #11
Scooby24
Super Moderator
 
Join Date: May 2004
Location: Olathe
Posts: 51,616
Post Thanks / Like
Thanks (Given): 49
Thanks (Received): 689
Likes (Given): 341
Likes (Received): 3959
Dislikes (Given): 27
Dislikes (Received): 40
Default

Quote:
Originally Posted by Rob View Post
That's a tough one...but I'm guessing the amount of interest you save would be more than any interest you might earn on your 401k, unless for some reason you have like over a million + in there

If you planned on putting your entire mortgage payment back into the 401k every month after it's paid off....I would say that would be worth doing it
I'm on track for 3-4 million (high side) between both the wife's and I's 401k at retirement but only have about 200k today, with contributions hitting what we owe on our mortgage in probably 2-3 years.... so I have no idea where that number would move if we effectively started over, but were completely maxing out what we could contribute whereas today I think I'm only putting 12% towards it on my side, and I think 8% on the wife's side. Obviously taxes for early payout would kill us and it may actually be a timeline closer to 5-6 years before we could actually have the funds to pay the mortgage down to zero after taxes and penalties.

I need to post on reddit and let the financial gurus tell me what would be smarter.
__________________
-Greg
'17 Tacoma TRD Off-Road

Last edited by Scooby24; 2017-01-26 at 12:24 PM..
Scooby24 is offline   Reply With Quote
Unread 2017-01-26, 12:32 PM   #12
turbotuner20v
 
Join Date: Nov 2005
Posts: 15,583
Post Thanks / Like
Thanks (Given): 22
Thanks (Received): 83
Likes (Given): 50
Likes (Received): 1009
Dislikes (Given): 4
Dislikes (Received): 10
Default

Owning appreciating assets is a good way to guard against inflation, but I'm not sure cashing out a 401k is the right path to get there.

Assuming your mortgage is ~$200,000 at 4% or less (and you can write off mortgage interest on taxes) you'd need investment of your ~$200,000 in 401k to make over 5% with fees.

There's probably more math that goes into this, but I'm comparing it to financing a car for $100k at 1.49% when you have investments making 7%+. Better to finance and keep your cash making money
turbotuner20v is offline   Reply With Quote
Unread 2017-01-26, 12:47 PM   #13
Scooby24
Super Moderator
 
Join Date: May 2004
Location: Olathe
Posts: 51,616
Post Thanks / Like
Thanks (Given): 49
Thanks (Received): 689
Likes (Given): 341
Likes (Received): 3959
Dislikes (Given): 27
Dislikes (Received): 40
Default

My main argument in favor is that based on the amortization schedule, the percent paid now is much higher than the overall percent on the loan so if I were to pay sooner, you get rid of the immediate interest paid with all of that money that would be thrown away reinvested back into retirement where it makes you money.

I dunno, this shit is math and math makes my head hurt.
__________________
-Greg
'17 Tacoma TRD Off-Road
Scooby24 is offline   Reply With Quote
Unread 2017-01-26, 01:26 PM   #14
Ryan Stewart
Mr. Plow
 
Join Date: Dec 2004
Location: Atlanta, GA
Posts: 37,812
Post Thanks / Like
Default

Quote:
Originally Posted by turbotuner20v View Post
I'm in a date target retirement fund right now + some company stock/match. 50/50 split between 401k and Roth. I buy most of my company stock at 15% discount through our program or get options as comp.
FYI those are typically the worst scenarios.

I use indexed and low-fee funds for my retirement accounts. FXSIX has slowed me YTD but made a good RoR last year, second best of large cap stocks. And since its a lazy fund that is just S&P its fees are virtually nil. Second best for me, international socks, is HAINX. One of my smallest is TRRKX, probably only got me 6%.

The big things is they are making returns up there with the better blended investments but their fee structure is well suited to the common man (aka only a few hundred grand). Im in the bottom 8% in fees for my value.

Then on my personal "fun money" stuff I am aggressive in some areas and safe in others. While the gas prices were high as fuck I made a killing with CSX. Not only in value but in large dividends. I got out at the beignning of this year at 33, it tanked when the gas prices dropped. I got back in at like 27, gas prices are going back up.

Oddly enough Pepsi has also been very good to me. Its a stalwart of a stock, save and not much growth. But again they are great about paying out profits.

Between the two I was looking at an 18% RoR untill...

I threw everything liquid I had at EUFN 2 days after the Brexit vote. Its an index for European bank stocks that took an absolute beating because the idiots across the pond. I got in at 15 and change and its bouncing around 20 right now. I told myself if it hit 20 Id sell but no markers are showing a dip, its going to take ages for Brexit to happen and by then the banks will have moved to Germany. So I am going to hold it for a year to get capital gains taxed instead of income, since we all know the Donald isnt going to mess with that.

Thanks to those my personal RoR in 2016 was insane.
__________________
Fast as fuck_________________________Your mom thinks its cool______________Old man bike
Ryan Stewart is offline   Reply With Quote
Unread 2017-01-26, 01:30 PM   #15
Ryan Stewart
Mr. Plow
 
Join Date: Dec 2004
Location: Atlanta, GA
Posts: 37,812
Post Thanks / Like
Default

Quote:
Originally Posted by Scooby24 View Post
My main argument in favor is that based on the amortization schedule, the percent paid now is much higher than the overall percent on the loan so if I were to pay sooner, you get rid of the immediate interest paid with all of that money that would be thrown away reinvested back into retirement where it makes you money.

I dunno, this shit is math and math makes my head hurt.
I looked at it time and time again and, especially with the tax situation, I haven't found a scenario where its better to pay my house off than invest. Hell, I only even paid the car off because I wanted to simplify my budget but I regretted that after throwing my liquidity after EUFN, I wish I had that money to invest then.
__________________
Fast as fuck_________________________Your mom thinks its cool______________Old man bike
Ryan Stewart is offline   Reply With Quote
Unread 2017-01-26, 02:22 PM   #16
turbotuner20v
 
Join Date: Nov 2005
Posts: 15,583
Post Thanks / Like
Thanks (Given): 22
Thanks (Received): 83
Likes (Given): 50
Likes (Received): 1009
Dislikes (Given): 4
Dislikes (Received): 10
Default

Quote:
Originally Posted by Ryan Stewart View Post
FYI those are typically the worst scenarios.

I use indexed and low-fee funds for my retirement accounts. FXSIX has slowed me YTD but made a good RoR last year, second best of large cap stocks. And since its a lazy fund that is just S&P its fees are virtually nil. Second best for me, international socks, is HAINX. One of my smallest is TRRKX, probably only got me 6%.

The big things is they are making returns up there with the better blended investments but their fee structure is well suited to the common man (aka only a few hundred grand). Im in the bottom 8% in fees for my value.

I'll look at FXSIX and HAINX. How much do you have to monitor them? Is it pretty easy/safe to set and forget?

I use TRRKX also (returns listed above)
turbotuner20v is offline   Reply With Quote
Unread 2017-01-26, 03:31 PM   #17
Ryan Stewart
Mr. Plow
 
Join Date: Dec 2004
Location: Atlanta, GA
Posts: 37,812
Post Thanks / Like
Default

I dont. I mean you can check daily but indexes are usually pretty boring.

Here is my thing. People ask me this crap all of the time. I think, for the independent investor, people are putting waaayyyy too much thought into things.

You arent day-trading. These are macro level decisions. Look at a trend and get on the wave. Check the wave occasionally but dont sweat at a momentary dip, waves crash slowly in the market. If you want to pull and hold cash/gold or something after a gain, fine. Nobody EVER buys at the bottom and sells at the top, you just try to get as close to either as your risk allows. And dont sweat only making 18% instead of 20%. No point in getting an ulcer about money you never had in the first place.

My thing? Chase stupidity. Never underestimate how stupid people are. Markets are perfect but, at least in the short term, people arent. Expect people to overreact, there is a ton of money to be made in the overreaction. Like my EUFN, which is too late to get into in order to make it worthwhile, or shorting the real-estate lending market, or going long on gold before a recession, etc. Sure, youre not going to make as much as the professionals but the institutional investors arent paying attention and will get in well after you, you make your money off of them.

And dont pay anyone to manage your money if you have the time. The difference in returns from an amateur that tries and a professional NEVER cover the fees.
__________________
Fast as fuck_________________________Your mom thinks its cool______________Old man bike

Last edited by Ryan Stewart; 2017-01-26 at 03:34 PM..
Ryan Stewart is offline   Reply With Quote
Unread 2017-01-26, 03:36 PM   #18
Ryan Stewart
Mr. Plow
 
Join Date: Dec 2004
Location: Atlanta, GA
Posts: 37,812
Post Thanks / Like
Default

Edit, also you can setup google alerts or use 3rd party apps to set parameters for notifications on your phone, at least on Android. If anything major happens with anything I am tracking I get a bing and a detailed notification. I cant move until the end of day but at least its notification to look and see whats going on.
__________________
Fast as fuck_________________________Your mom thinks its cool______________Old man bike
Ryan Stewart is offline   Reply With Quote
Unread 2017-01-26, 06:25 PM   #19
seawolfxix
 
seawolfxix's Avatar
 
Join Date: Jun 2016
Location: Liberty
Posts: 215
Post Thanks / Like
Thanks (Given): 4
Thanks (Received): 4
Likes (Given): 36
Likes (Received): 35
Dislikes (Given): 0
Dislikes (Received): 0
Default

I selected some mutual funds from Fidelity after doing some research a few years ago. Riding them out for 5-10 years to see how they do. If I don't beat the S&P500, then I might move it all into an S&P500 index fund.
seawolfxix is offline   Reply With Quote
Unread 2017-01-26, 06:28 PM   #20
snm95ls
 
Join Date: Apr 2006
Posts: 42,738
Post Thanks / Like
Thanks (Given): 394
Thanks (Received): 349
Likes (Given): 3562
Likes (Received): 2053
Dislikes (Given): 64
Dislikes (Received): 56
Default

Haven't thought too much about it. It's unlikely that I will retire or live long enough to retire.

Probably should make a plan though since my father thought the same thing when he was my age, and is now ready to retire with nothing but SSI.

__________________
Quote:
Originally Posted by Dr. Leonard McCoy
I know engineers. They love to change things.
Quote:
Originally Posted by Jeremy Clarkson
...Because I live on a balanced diet, I have a balanced mind, and as a result I know that animals are like people. Some are for looking at. Some are for loving. Some are for riding. And some need to be shot because they’re a bloody nuisance.
snm95ls is offline   Reply With Quote
Unread 2017-01-26, 09:32 PM   #21
DanenGraham
 
Join Date: Feb 2004
Location: Lee's Summit
Posts: 3,343
Post Thanks / Like
Thanks (Given): 1
Thanks (Received): 35
Likes (Given): 33
Likes (Received): 250
Dislikes (Given): 0
Dislikes (Received): 4
Default

Target date 2055

I'm going to try and max out the contribution from here on out or at least get near it. I have been wanting to start investing in other things too, but I always end up getting cold feet and backing out. I hate it.
DanenGraham is offline   Reply With Quote
Unread 2017-01-26, 09:41 PM   #22
Dave B
 
Join Date: Mar 2004
Location: Creating DaveBisms
Posts: 11,926
Post Thanks / Like
Thanks (Given): 15
Thanks (Received): 133
Likes (Given): 24
Likes (Received): 998
Dislikes (Given): 4
Dislikes (Received): 63
Default

I've been in the market since 1998 and have made some mistakes along the way. IMO, just stick with S&P 500 index funds assuming they're available in your 401K. Fees are hardly anything and the data strongly supports that most everyone cannot beat a good S&P 500 index fund like the Vanguard 500 Index Admiral fund. ALL of my company 401K is in that (100% S&P 500 index); so is almost all of my traditional IRA (70% S&P 500 index); and also the primary non-retirement account (50% S&P 500 index) which my wife and I share and has majority of our money. My wife and I do have a few stand alone very solid stocks like P&G, Berkshire, and a few other "fun" ones in our non-retirement account and our his and her Roth IRAs. However, those stocks only represent about 20% of our portfolio. Lastly, we do have a lower risk bond-type funds to offset some risk. Overall, we're about 80% mutual fund and stocks and 20% low risk stuff. There's the ~6 month rainy day fund in cash.

S&P 500 Index funds are solid for most investors like us. The fees are low and they're easy to understand. Basically if the market is up, so are you and vice versa.

If your 401K options suck and don't have solid low fee options (basically fees below 0.1%), then consider only doing up to the company match. Honestly, I'd never do more than the company match unless you can get good index funds. Lastly, DO NOT put all your money in retirement accounts.
Dave B is offline   Reply With Quote
Unread 2017-01-26, 10:04 PM   #23
ForcFed93
 
Join Date: Jul 2004
Location: Topeka KS
Posts: 4,073
Post Thanks / Like
Thanks (Given): 16
Thanks (Received): 94
Likes (Given): 332
Likes (Received): 660
Dislikes (Given): 2
Dislikes (Received): 29
Default

I have most of my retirement built through a nice pension, but I also have an additional account that I shovel money into.

I have a variety of funds that I'll list when I get back in town. Over the last year it's pulled 18.73%. Not bad I think.
ForcFed93 is offline   Reply With Quote
Unread 2017-01-26, 10:41 PM   #24
The Lox
 
The Lox's Avatar
 
Join Date: Feb 2004
Location: DallASS
Posts: 15,505
Post Thanks / Like
Thanks (Given): 39
Thanks (Received): 131
Likes (Given): 181
Likes (Received): 946
Dislikes (Given): 5
Dislikes (Received): 34
Default

Quote:
Originally Posted by mild83 View Post
So for the first 11 years I was at the same company. My distribution was:
small growth 35%
Target fund 2045 33% (I only chose this because it has a steady return and low fees)
Diversified Intl. 14%
Bonds 17%


It's done a little less than I would have liked. I just started with a new company and have done 100% in a target fund 2035 for the time being. I really need to sit down and look at my options. My current company offers a 5% stock discount, but I won't qualify for another 5 months or so. Not sir if I'll participate, there's no dividend and there's a possibility for a lot of fluctuations over the next 12+ months.
Target Date funds are meant to be 100% invested or not at all. So in the future if you put money in one, the only other investment to use with a TDF is potentially company stock, but most experts will tell you to have no more than 10% of your savings invested in company stock.

The biggest thing with 401(k) savings is to put as much money in as you can and pick a diversified portfolio, or one like a TDF that is diversified for you. Rebalance your account 2 times a year and just keep plugging money into it.
__________________
You're fucking out!!!
The Lox is offline   Reply With Quote
Unread 2017-01-26, 10:44 PM   #25
The Lox
 
The Lox's Avatar
 
Join Date: Feb 2004
Location: DallASS
Posts: 15,505
Post Thanks / Like
Thanks (Given): 39
Thanks (Received): 131
Likes (Given): 181
Likes (Received): 946
Dislikes (Given): 5
Dislikes (Received): 34
Default

Quote:
Originally Posted by Dave B View Post
I've been in the market since 1998 and have made some mistakes along the way. IMO, just stick with S&P 500 index funds assuming they're available in your 401K. Fees are hardly anything and the data strongly supports that most everyone cannot beat a good S&P 500 index fund like the Vanguard 500 Index Admiral fund. ALL of my company 401K is in that (100% S&P 500 index); so is almost all of my traditional IRA (70% S&P 500 index); and also the primary non-retirement account (50% S&P 500 index) which my wife and I share and has majority of our money. My wife and I do have a few stand alone very solid stocks like P&G, Berkshire, and a few other "fun" ones in our non-retirement account and our his and her Roth IRAs. However, those stocks only represent about 20% of our portfolio. Lastly, we do have a lower risk bond-type funds to offset some risk. Overall, we're about 80% mutual fund and stocks and 20% low risk stuff. There's the ~6 month rainy day fund in cash.

S&P 500 Index funds are solid for most investors like us. The fees are low and they're easy to understand. Basically if the market is up, so are you and vice versa.

If your 401K options suck and don't have solid low fee options (basically fees below 0.1%), then consider only doing up to the company match. Honestly, I'd never do more than the company match unless you can get good index funds. Lastly, DO NOT put all your money in retirement accounts.
Typically your management fees are going to be lower in a 401k than any retail IRA or brokerage account you would be able to open though, so its not exactly the most sound advice to tell someone to only contribute up to the match and then put money elsewhere. You also cant get R6 share class investments in a retail account like you can in a K plan, so again, you would be paying more in fees, which ultimately just come out of your performance if the fund is the same, but the share class is different.
__________________
You're fucking out!!!
The Lox is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

 

All times are GMT -5. The time now is 09:40 PM.


Design By: Miner Skinz.com
Powered by vBulletin® Version 3.13.37
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Copyright (c) 1993-2012, KCSR.org