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What is your 401K performance YTD?
- Thread starter hajimow
- Start date
I knew this subprime crap would eventually come around and we'd all have to pay the piper...
so what did I do?
I took out half my 401K in loans that I pay the interest back to myself at 13.5% and distributed the other half between bonds and international funds.
Then I stopped contributing to it.
So until I pay my 401K loan back I am locked in at 13.5% return plus whatever I can get from any bonds or int'l funds, which is good.
The hell with all this other crap.
The funds from 401K loan I took out went to trade futs.
Life is good.
so what did I do?
I took out half my 401K in loans that I pay the interest back to myself at 13.5% and distributed the other half between bonds and international funds.
Then I stopped contributing to it.
So until I pay my 401K loan back I am locked in at 13.5% return plus whatever I can get from any bonds or int'l funds, which is good.
The hell with all this other crap.
The funds from 401K loan I took out went to trade futs.
Life is good.
401k money is basically dead money. those fund companies have no tools for you to agressively manage the money, those fund company love that.
if you work for public companies, then you have some choices to do some overnight trading on the company's common stock, but as I know there is no stop-loss, option protection tools, you can only play one way street, it is very risky and dangerous, that is why we have ENRON guys whose 401k accounts can be runied one night.
mutual funds are basically a buy and hold idiots' strategy, guys who work as employees should push those fund companies to have protection trading tools avalibale to general amteaur guys. 410k is totally a hoarx
if you work for public companies, then you have some choices to do some overnight trading on the company's common stock, but as I know there is no stop-loss, option protection tools, you can only play one way street, it is very risky and dangerous, that is why we have ENRON guys whose 401k accounts can be runied one night.
mutual funds are basically a buy and hold idiots' strategy, guys who work as employees should push those fund companies to have protection trading tools avalibale to general amteaur guys. 410k is totally a hoarx
Quote from trader_david:
401k money is basically dead money. those fund companies have no tools for you to agressively manage the money, those fund company love that.
if you work for public companies, then you have some choices to do some overnight trading on the company's common stock, but as I know there is no stop-loss, option protection tools, you can only play one way street, it is very risky and dangerous, that is why we have ENRON guys whose 401k accounts can be runied one night.
mutual funds are basically a buy and hold idiots' strategy, guys who work as employees should push those fund companies to have protection trading tools avalibale to general amteaur guys. 410k is totally a hoarx
I can buy any mutual fund that I want in my 401K account. Including trading stocks, ETF and buying options. I can buy bearish mutual funds if I want to short the market. I had to sign an agreement that I will be on my own if I want to go beyond my company's selection. I just pick good mutual funds and I don't trade them. I review them every 3 months.
Quote from trader_david:
410k is totally a hoax
Nahhh!!! The 401K is by far the best retirement vehicle. My company matches 150% of my 6% salary contribution. That is an immediate return on that cash. Not to mention that my contrib is pre-tax.
When I got a decent sum of money in there I borrowed 1/2 of it from myself as this was the max allowed. That took it out of the hands of bogus mutual fund managers. I trade that 1/2 in my trading account and get great returns on it. All I have to do is make payments to myself every month with interest (to myself).
Every few months through paying it down and additional contributions I free up several thousand more. So I pay the entire loan off and immediately take another out for 1/2 of the now larger total balance.
I do the same thing with home equity. Turns my 30-year mortgage into a 7-10 year mortgage with only minimal monthly payment increases. Using cashflow and net worth efficiently is key.
Cache Landing
did great job! it is not wise to keep money in those 401k management companies, basically they have no tools for you to manage your money.
take out 401k money and managge aggressivly it outside of those 401k maganemegment companies and depsoit it back is a great way.
did great job! it is not wise to keep money in those 401k management companies, basically they have no tools for you to manage your money.
take out 401k money and managge aggressivly it outside of those 401k maganemegment companies and depsoit it back is a great way.
Quote from trader_david:
Cache Landing
did great job! it is not wise to keep money in those 401k management companies, basically they have no tools for you to manage your money.
take out 401k money and managge aggressivly it outside of those 401k maganemegment companies and depsoit it back is a great way.
I've taken it to the extreme.
Not only am I using 1/2 of my 401K and my home equity for trading/investment gains, but I also use my weekly paycheck.
I get paid 1/4 of my monthly salary every Friday. This means that I get paid 3-4 weeks before my mortgage and bills are due. I arranged to have all my bills come due the same day. In the mean time, I use a low limit credit card for all purchases. My paychecks are direct deposited to my investment accounts and I use than capital to increase gains. 2 days before all my payments come due I withdraw enough money from my brokerage account to pay my mortgage and completely pay off my credit card. Then the cycle starts over the next month.
You'd be surprised how much extra money I've generated by using capital that was just waiting to pay bills in a no-return checking account.