I don't know if there's much interest, but if we're doing steaks, TV shows, exercise and vacations, we may as well do money. I know there's at least a few guys on here who work in finance (and a few others who at least have bank accounts!). About 2 years ago I got into a discussion with genius about my decision to buy Apple when it was trading for $100 (I got in at 70; he was adamant it had nowhere to go but down). I sold half of what I had a few months ago at 180, and bought GE for 13. It's 14 now, and I'm confident in a year or 2 it should be 18-20. If I had anything left, I"d be buying ExxonMobil XOM for under 80. Solid core business, good upside potential if oil rises, and if nothing else, a 4% dividend while I wait. As always, speak with your financial advisor before investing, and remember: You can't do better for financial advice than anonymous internet sources! What could possibly go wrong?
Things to do with your 401(k)
- Thread starter WizardOfAhhs
- Start date
LOL Nooooo. Actually, none of it. I have a separate account of "play money". When it's up, I take the profits and play. When it's down, I wait, and don't play as much. But my 401? That's entirely separate, and at the moment, 100% in cash while I decide what to do. I have 2 years before I'll need it, so I'm pulling out of equities to avoid this volatility and because I think we're nearing the end of the run. I'm really thinking of just getting a 2 year T-bill. I can satisfy myself with 2.5% and no worries.
Someone recommended to me taking a loan out on my 401k and using it to buy property someplace cheap. Hire someone to manage it as a rental space, and let it make money to pay back the 401k loan and then just generate income.
My wife wasn't too keen on the idea, but it seems to me that if you are smart with what and where you buy, and you hire a reputable person or organization to manage the place, it might be a good investment.
I didn't do it, and I don't recommend it (but I don't recommend against it). I am just passing along something I heard. Do your own research.
My wife wasn't too keen on the idea, but it seems to me that if you are smart with what and where you buy, and you hire a reputable person or organization to manage the place, it might be a good investment.
I didn't do it, and I don't recommend it (but I don't recommend against it). I am just passing along something I heard. Do your own research.
Better be looking at a cheap house. The max you can borrow against your 401 for house is 50K (or half your 401 balance, whichever is less). Plus, the usual repayment term on a 401 loan is 5 years, although may be more for a house. Plus, if you should lose your job, the entire loan balance may become due in 60 days. Plus, some plans won't let you make contributions until the loan is repaid, so your tax bill in April will be higher since loan repayments aren't deductible.
I bought 500 shares of Exxon in low 70's couple of years ago. Like you said solid company with good dividend. I keep stocks like that in my 401K. More speculative stocks in my taxable accounts. If you are interested in the Tech chip side take a look at MCHP and TI. Both pay dividends and are not tied to Cell phones. Both have doubled (and not including dividends) in last 2 years and are 10 baggers (and not including dividends—I don't reinvest) from when I bought them just after the tech-wreck.
I'm still not interested in Apple although I am indirectly invested in it with my S&P index funds.
I'm still not interested in Apple although I am indirectly invested in it with my S&P index funds.
Giving? or buying?
At the moment, I'm wishing I had sold all my Apple at 180 instead of just half. But I'm stubborn, and hope for something good out of all that foreign cash they're bringing back. But i'll be looking for an exit soon after that, that's for sure. Chips, though, I don't even understand. Could never figure out how those damned things work anyway.
That is true. Another reason to consider loans against your 401k as a loan of last resort.
At the moment, I'm wishing I had sold all my Apple at 180 instead of just half. But I'm stubborn, and hope for something good out of all that foreign cash they're bringing back. But i'll be looking for an exit soon after that, that's for sure. Chips, though, I don't even understand. Could never figure out how those damned things work anyway.
That is true. Another reason to consider loans against your 401k as a loan of last resort.