Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Thanks for responses

Problem with factoring IRA value at retirement is that its all aggressive FANG mutual fund so value would depend mostly on the market/FANG and does not pay dividends.
Someone suggested use ROTH and i will never touch ROTH since it has a yearly cap and cannot replace it fast enough.

I was just trying to find a way to keep my cash open for stock trading since i only have about $52k in cash in Fidelity, so taking out $35k with really limit what i can do

Guess i will do it the traditional way and get a loan, having a hard time finding below 3.84% in my area with 817 credit score and zero debt (along with over 30% down)
Current vehicle is only 2.19% through Chase and they cant even get close, rates are up!

 

Why so much cash on hand? I put every dollar to work in December and have made a lot in January. Are you waiting for new lows, or just a trader, or to cover options? Just wondering because I couldn't buy enough during that correction.

 

Its all in stocks, but in my cash account, so would have to sell all

This year has been pretty good, bought and sold Roku twice and now holding till earnings, got 19.5% from AMD yesterday and my current long position is with Starbucks which i think hit ATH high today. THat is the problem i want to keep that money there to keep investing, not sell $35k of it, then only have a little left to play with

 

I dont do options, just long and swing

 

Ok gotcha. I thought by in cash you meant like sitting in a bank account. You're doing well though, Roku might be the next stock to make regular people rich. I will probably just wish I got in as it goes up lol

 

I just see that 77 year high and a possibility of a buy out. I bought it for $40.06 last week and have been long since, just keeps going up
I did flip it a couple weeks ago, it shot up 25% from $27
If something crazy happens here i can use those profits and this discussion wouldnt have happened (along with bought with Roku sticker in window)

 

Anyone on stocktwits?

my user is: mattleegee

 

I'll check it out. Thanks.

 

I talked to a guy at my brokerage firm and we started discussing 401k’s and the numbers. He explained that even if you withdraw early with the penalty, getting an employer match and then taking the penalty is a better investment than a 5% yield is on the same money in a taxable account. I don’t know how I didn’t think of it that way, but I’m going to contribute the max again and then cash it out eventually, or roll it over, but either way I was turning down a free doubling of some money, which was pretty dumb!

 

Yeah a company match is a zero risk 100% return immediately, which is tough to beat

 

Mine is 4% as well. I contributed for about 3 years, but tried to cash it out a few months ago, found out I can’t. I only missed like 2 months of contributions. Oh well.

My only complaint is the choice of funds, there aren’t many. I don’t care though, I’ll just look at it like my return is the employer match. That’s good enough for me!

 

You can, but only for new money. It seems you can’t sell what you have, but you can redirect the future contributions.

 

Seenif your plan offers low cost index funds. I am a firm believer in low cost index funds. Warren Buffett is one of John Bogle's most ardent supporters.

 

Yea just a general market fund is where it is, good enough. I’d go for SPY if it was an option for a 401k.

 

I’d get in that S&P 500 fund if I were you, then invest other places with a brokerage account.

 

That is pretty safe if your time horizon is long. If you want to get risky with the potential for higher returns, look at small cap growth stocks.

 

They only lost money if they sold or cashed out their accounts. If they held until now they’re far better off than before the crash. Even assuming they never contributed another penny.

If you’ve got 10+ years until you’re retiring there’s no reason not to be aggressive in your retirement accounts. Just set up the monthly contributions and don’t look at it more than once a quarter to verify the contributions have gone in like they should have. If you treat the money like it isn’t there, and don’t plan on touching it until retirement, you don’t need to worry if you lose 20% in a single year, because it’ll back back up 30% the next one

 

You can’t change your current allocation for existing balance/holdings? I’ve never seen a plan that has that restriction. It pretty much violates fundamental money management tenets as one moves closer to retirement and a need for reduced risk.

 

That’s why you need a long horizon. That was a bad crash in 2000, by about 2008 it was back to the peak, then crashed again, and got back by about 2013. So you could have bought at the 2000 peak and held on until 2013 and been back to where you started. Not ideal!

That’s why I buy only dividend and dividend growth stocks. Market price doesn’t matter, in fact, a crash is great for buying, and you get paid to wait.

 

Ugh do research on the funds and try to find the expense ratios as well as historical performance. Not the best choices there imo