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

Aint nobody got time for that

 

NIO at $5.58 in pre-market, nice. Turtle Beach up, too. The market has been killing it lately. My 401K and personal Vanguard accounts have never been higher. Huge contrast from December when the world was ending! Too bad this can't last forever...

 

if you max out your company sponsored retirement plan at 19k can you also contribute to a personal roth IRA?

 

Correct. Isn't it $6k this year?

 

Yes, google “backdoor ROTH”. Needs to go to IRa first, then convert to ROTH. I do that every year in early January. This year was amazing timing because the market was in the pooper.

 

Yes sir, 2019 limit is $6,000. I set aside money every month to make sure I can make my contribution first week in Jan.

 

You're welcome lol. I'm still riding this UWT stock

 

Anybody watching PLUG?

 

I have not been, but I guess someone believes strongly in them if they are lending them $100MM

 

some other folks have talked about it in this thread (just search PLUG in the search box and check "search this thread only").. looks like maybe a good swing trade stock but long term charts show it's been underperforming. Reminds me of CHK. Weekly chart is a disaster. Looks like they've done many inverse splits.

 

Yes, the limit is $6k for this year.

A back door is only required if you’re above the income limits for the IRA. Although typically if you can contribute $25k a year to retirement you will be above the income limits.

 

After a quick look: no dividend, horrible looking 5-year and longer chart, missed earning almost every quarter.

Unless you know something not reflected by all of that, I don't see this as a good investment. I buy with the intent to never sell though, so maybe it's something you can trade in and out of, that I don't know.

 

We have an employee stock purchase plan at work (LUV), where we can buy shares at a 10% discount and from the way I read after holding a share for two years you can sell it and not forfit the discount.

What do you guys think? I’m not educated enough to get off the fence. I see pros and cons.

Buy shares then sell periodically or buy and ride it out? I’m very skeptical of airline stock. I’ve seen enough in my short career to see how unstable airlines are. We are doing great for now, but you never know what the future may hold.

 

Personally I wouldn’t want to have both my current income and my future income reliant on one company. So maybe some stock purchases would be okay, but certainly not a large chunk of it were me. I work for an employee owned company and can purchase company stock at a discount as well, but don’t have a ton.

 

Sounds like a nice opportunity but don't put most of your money into the stock. Too risky to put all of your eggs in one basket.

 

Do they have a cap on your discount? 10% sounds great, the hold for 2 years might take awhile to pay off... so is this a RSU? or common?

My work offers 5% discount but a maximum of 10% of my pay can be contributed
Shares are purchased every quarter in a lump sum and can be sold whenever you want, its a nice way to save money and collect dividends!

 

I’m not sure about a max.

(On my phone and too difficult to multi-reply so this is to everyone)

I should’ve mentioned I intend to just automatically put 50 bucks every paycheck into it. It’s floating around 50/share. Most of my “eggs” are in my 401k 11% with 9.3% company match for now and I’m about to bump it up with my next raise.

I have a chunk of my 401k in a vanguard 2055, some in a 2060, and I just started allocating future funds to the vanguard 500. Is this good practice to diversify my retirement like this?

And the ESPP I will just tinker with on the side. Sounds like everyone thinks it’s okay to do but obviously not something to focus on?

 

I personally prefer index funds to target funds due to the lower cost of index funds vs the target funds. Target funds do have an advantage of set it and forget it.

 

Just put in all in one 401k

Judging by your target date your younger and getting a good start
401k
Stock purchase program

Maybe add a ROTH IRA ?


I dont know if my setup is the best but here is what i do:
401k 10% contribution
Stock program 10% contribution
$150/check rainy day fund
Max ROTH IRA ($6000/yr or $500/month)

 

Started this company at 23, 25 now. I have been putting 10%+ since day 1 to get the company 9.3% match.
My 401k looks like this now (going to bump it up soon like I said):
6% traditional
5% roth
9.3% company match automatically traditional
All that is in the 2055 and 500 like I mentioned, and a separate profit sharing account in the 2060 fund.
I was doing (and reconsidering doing again now) the stock purchase program at $50/paycheck. I think it purchased monthly, but I'd have to look at it again.

We're probably about to get a new contract which means $8/hr raise for me and so on, so I'm bumping my 401k up to absorb some of that raise.

Am I correct thinking that the different target funds purchase different stocks/bonds?

I just looked and the 500 is an index fund. All of my 401k was in the 2055 Target, which I'm leaving there. As of now future funds are allocated to the 500.

Once I saw my 401k growing I realized I need to learn more about it. I still have a long way to go but it's making sense to me now.