Shares of restricted stock from my company (I only know I can’t touch these for 2.5 years).
It’s not that we don’t save/invest but I honestly don’t know if we’re doing it with the right product mix for our incomes and age. The goal for this year is to open a brokerage account, start there, and build upon that.
That’s not correct, Including employer contributions max amount is $55000. Your plan may or may not allow contributions this high.Maximum deductible (or Roth direct contributions) is $18.5k. Google the term Mega Backdoor Roth to learn more.
Enjoyed reading this thread. A lot have an idea about investing. Now let me tell you this. Did you know that you are paying an average of 1% to 2% in fees on your 401k whether it goes up or drop in value? So $100k sitting in a 401k plan is being charge with a $1-2k a yearly fee. Isnt that great? Not!
not necessarily. I have picked the lowest cost index funds and I pay only about 0.1%. otherwise, your point is correct and if people are paying high fees in their 401Ks they should reconsider their holdings. there is a lot of research out there and a very small % of the higher cost mutual funds can beat the S&P index and justify the higher fees. Just pick the lowest cost index fund.
That’s probably very true for many plans. If you happen to work for a large employer though (institutional) fees can be very small (i.e. a few basis points or less).
I learned something new today. I’ve been doing the back door roth conversion but I didn’t know about the mega backdoor. looks like there are some limitations though.
Question to those who will be better versed than I; back with the “market crash” happened (2008?) and I heard all over people lost their 401K savings because of it, what does that really mean? Typically for stocks you don’t lose anything, until you sell. So did their 410K savings just disappear?
Barring owning your employers stock, It means they sold out of their 401k stock portfolio when it went way down. Had they held on it (typically) came back, and then some.
Much too common for small investor to buy high and then sell out at a loss when it falls.
What @Force is talking about is the fees that 401k administrators charge not the actual expense ratio for funds have.
Administrative fees + expense ratio is what you are paying.
Market dropping. Might be buying opportunity. Hopefully it will drop some more in the next few days. Was expecting a correction next month. Tech stock is getting hit hard.
Not including 401k. Stock is probably your best bet if you have the stomach. If you are in a major housing market, a second home would be nice. I am earning 7% via lendingclub, but I just don’t like it as it is not very liquid. I am going to stick to stock as it is easily disposable.
If the opportunity arises, update your home with green tech, it could pay itself off in 5-7 years.
So i guess that 800+ point drop is just profit taking. Or maybe today is just a head fake. Yesterday everyone is in panic mode. And today, wall street already forgot what happened. Ah, the power of greedy wall street banker.