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Post by mikec on Jan 1, 2011 9:05:35 GMT -5
Happy New Year to all. I think it is a good idea to start a new thread the first day of the new year on a topic I had many discussions on the old MSN board.
My personal rate of return for 2010 was 13.5% !!!
My game plan all along is to have a 7 figure nest egg when I retire in 4 years and figured I need 5% or better a to achive this goal. I hope 2011 is as good a year but have trouble believing I could do so well 2 years in a row...
But I am well on my way to acheiving my goal... What are your goals for your 401Ks and how do you plan on getting to them?
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Post by suzwantstobefree on Jan 1, 2011 11:59:51 GMT -5
I earned a little over 12% this year. I hope to max out my 401K and retire in 2032. It is 21 years and seems like a long time down the road, but I know it will be here before I know it.
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Post by mikec on Jan 1, 2011 12:41:40 GMT -5
I agree free. Make a plan and stick to it. It seems like yesterday I had 21 years to go. I am so glad I made a plan and stuck to it. wxyz it is funny you should mention beating the S&P
It was up 12.8% (from whatI just read) and my 13.5% DID indeed beat that by a bit!!!
I hope 2011 is another good year for returns BUT like I said that will be 3 in a row.....
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Post by mikec on Jan 1, 2011 16:34:07 GMT -5
I hope you are right Frank. A few more years of double Digit returns for me and it will be a wonderful retirement!!!
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Deleted
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Post by Deleted on Jan 1, 2011 16:39:48 GMT -5
My strategy is to be more disciplined than the average investor.
I would like to be maxing out my 401k and IRAs but I am not doing that yet. Maybe someday.
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Deleted
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Post by Deleted on Jan 3, 2011 8:00:59 GMT -5
Oh c'mom ATD...whats the big deal....look how much time you missed "watching" what will happen as opposed to re balancing to what happens In what way? Because I am not maxing out? I know, I know.. but I have to compromise at the old homestead. |
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Post by sangria on Jan 3, 2011 16:33:27 GMT -5
Frank just stated one of Buffett's old rules. Never invest in anything you don't understand.  I've put a lot of money into the old homestead too, but it was worth it! |
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Post by mikec on Jan 4, 2011 7:44:17 GMT -5
We started the year off with a bang! hope in continues. My plan has me moving some of my Stock Funds into Bond funds this year and moving my allocation from 60/40 stocks/bonds to more like 55/45. I have to admit I am a little gun shy about moving anything out of stock funds right now. I always figured as I got nearer to retirment age I would start to limit my exposure to international funds and move more of that into bond funds ( all PIMCO) Now I may just try and run with this a little.......
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Post by sangria on Jan 4, 2011 14:46:13 GMT -5
Warren left a cig burning in his car ashtray.  |
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Deleted
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Post by Deleted on Jan 4, 2011 15:05:07 GMT -5
What about holding onto individual bonds, rather than bond funds? If you hold to maturity, there is limited risk, right?
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Deleted
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Post by Deleted on Jan 4, 2011 15:24:40 GMT -5
anyone?
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Post by sangria on Jan 4, 2011 15:36:45 GMT -5
I think on Schwab you can research prior munis from a particular city our county and get their past default rate (if any).
Of course, if the government goes nuts and guarantees anybody's munis, then I suppose they are a lock.
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Post by Deleted on Jan 4, 2011 15:38:39 GMT -5
what about corporate bonds?
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verrip1
Senior Member
Joined: Dec 20, 2010 13:41:19 GMT -5
Posts: 2,992
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Post by verrip1 on Jan 4, 2011 15:43:58 GMT -5
I never heard of a 401k that allows people to buy individual bonds.
Today, hold-to-maturity bonds contain an interest rate risk to your portfolio. Let's say you buy $10K of 20 year Treasury bonds @ 4.18% today. But if the likely interest rate increases occur, you'll be stuck with 4.18% when the market could be selling 20 years at 6.5%. Perhaps fully liquid money markets return to 5% yields. That locked in 4.18% might look satisfactory today, but 5% for cash would make the bond holding a fixed income albatross.
Seems to me that floating rate bonds would be a good way to go if one wanted to increase bond holdings now.
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Post by sangria on Jan 4, 2011 15:45:44 GMT -5
Again, you can get past default rates. I feel a little better with corporate. A muni is backed by somebody's ability to tax. A corporate bond is backed by steel mills or oil wells or trucks or railroads or:  somebody's ability to tax! |
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Post by sangria on Jan 4, 2011 15:47:19 GMT -5
A self-directed 401k allows you to buy individual bonds or anything you want. Frank the Impaler can modify your 401k to self-directed (for a fee).
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verrip1
Senior Member
Joined: Dec 20, 2010 13:41:19 GMT -5
Posts: 2,992
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Post by verrip1 on Jan 4, 2011 15:49:16 GMT -5
Really? Can mid and decoy provide testimonials?
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Post by sangria on Jan 4, 2011 15:54:08 GMT -5
No. Mid and Decoy don't have 401k's. They don't have jobs.
Frank modifies very few 401k's. It's easy enough to do yourself when you go to work for a company. Or, you go to work for a company whose 401k is already self-directed.
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kman
Initiate Member
Joined: Oct 8, 2011 20:43:42 GMT -5
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Post by kman on Jan 4, 2011 16:00:45 GMT -5
I have had a blast directing my own. It's easy. Whatever mid advises....do the opposite.
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Post by sangria on Jan 4, 2011 16:07:09 GMT -5
That's right. It's the joy of being your own boss and being in control!  |
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Post by mikec on Jan 5, 2011 7:58:20 GMT -5
So Frank: I guess your advise to me would be to keep my 60/40 split a while longer and NOT direct some of my stock fund $$$ into bond funds at this time... I had always planed to start geting more conservitive at 58 (now) maybe I will put it off til 60 and try to run with what we have right now.... antother 13.5% year would be nice!!!
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Post by sangria on Jan 5, 2011 11:42:33 GMT -5
Hard to believe the rotation will go on for two more quarters. When do we get to go to the bathroom?  |
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Post by wheels1313 on Jan 7, 2011 22:11:10 GMT -5
I still believe the Dollar is the key... both with it's weekly charts and it's monthly chart showing an accurate ratio indicating inflationary vs deflationary environment. (We're still inflationary as of Dec 31st). The dollar just flipped back to long today (end of week), which is often a Dollar up and markets & commodities down situation. Stronger Dollar IS still good for Long Japan... at least for awhile. A lot of "cracks" in the weekly charts developed this week... although the Bulls are working hard to keep buying the dips. Other weekly charts sent both my Long commodity and Russell 2000 positions to Cash... pending whether it heads back up OR signals Go Short. I ended up with a 23.4% gain for 2010 with no bias to Long or Short.
Archie,
I'm not maxing out my 401K contributions either... but hope to get there in less than two years... after house is paid off as we are paying that down as quickly as possible. Only 18 months to go!
Agree... make a plan. Stick to it, BUT be flexible enough to adjust the plan as "new" data or better methods arise. I hope to improve on my gains each year... regardless of up or down markets.
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Post by mikec on Jan 8, 2011 16:23:57 GMT -5
PIMCO High Yield Institutional CL (PHIYX)
PIMCO Total Return Inst CL (PTTRX)
Here are my 2 bond funds...I'm VERY happy with them.
Seems like I make money on my stock funds some days. other days my bond funds.
I was always taught to be diverisfied and get more conservitive as you get older....
Frank is now starting to convince me to stay aggressive even into retirement (gulp)
BUT I don't think I could ever be 100% in any thing...
Check out those 2 bond funds and their 10 year returns....
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Post by mikec on Jan 16, 2011 10:02:24 GMT -5
This year has really started off with a bang so far. The market looks good and my little 401K has had almost a 2% increase this year ( OK 1.7%)
I did not rebalance the first of the year as I normally would which would have moved about 5% of my funds from stock funds to bond funds....
It is early in the 2011 game but I am happy so far....
As far as managing my own 401K, I think for me AND more than likely the bulk of 401K investors, If you have a good plan, and a good plan administrator, work within the comfines of what they provide. Your highs may not be as high as others, BUT your lows will not be as low as some also... Pick good funds (4&5 star) rated and make a plan and stick with it...
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