Investing 401K on a particular stock

Nvidia monolith
Sep 27, 2018 23 Comments

Can we invest 401k funds on a particular stock? I have seen quite some instances here where peoples 401k have skyrocketed. My 401k is with Fidelity.

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TOP 23 Comments
  • Google / Eng whatsgood
    Ok. Here’s the scam. Your employer establishes a plan with a custodian (vanguard/fidelity/tiaacref) where all your money goes. The custodian collects a fee. The lowest fee options are to plow all the company money (all money from employees at company plus employer contributions) into a relatively small number of passively invested mutual funds and bonds.

    They say it’s for your own good.

    I got scammed like this. The only way to change it is to leave the company, rollover your own 401k into a new 401k that is - and here’s the correct wording - self directed. A self directed 401k account allows you to invest in whatever the fuck you want to.

    After more than a decade at my first employer I had amassed a non trivial amount of money in my 401k. I left that employer and went elsewhere. Since then it’s been about 4 years and I have doubled my portfolio by investing in shot that I know about. Namely technology. I did it by buying long call options (or short puts) in tech companies that I use and knew about just because I’m in tech. Like Netflix. Like apple. Like Microsoft when they got a new ceo and stopped being asshats.

    If you are in tech you should know that Apple google msft are literally printing money. If you don’t know this then this investing method is not for you. If you can not stomach losing 10s of thousands on a bad trade this method is not for you. If you can’t trade from your phone and watch the market every day then this is not for you. If you don’t know what call/put options are then learn. If you can’t learn this is not for you.

    If you lose all your money cause you took my advice to self trade your account then you are dumb af and this post is not for you, also I take no responsibility.
    Sep 27, 2018 7
    • New DuQvV7x
      When you rollover your funds to a rollover IRA, you are your own plan administrator and can do whatever you wish within the menu of services provided by your custodian.

      You can rollover from anywhere to anywhere (within IRS guidelines)
      Sep 27, 2018
    • Nvidia monolith
      OP
      This is some good info. So nvidia currently matches a max of 6k. So what you are saying is I cant use that 6k as well, if I make a self directed 401k account?
      Sep 27, 2018
    • New DuQvV7x
      1. You can make a self directed 401k at any time.
      2. A major benefit of a 401k plan is the taxable wage reduction. You lose this in a self directed plan.
      3. You don’t lose the Nvidia contribution. You can be in several plans at once.
      4. You can’t move your 401k money out of the plan while you are with your employer.

      Hope these al make sense...
      Sep 27, 2018
    • Google / Eng whatsgood
      ^4. You can not move your money while you are still in the employ of your employer.

      @duqvv7x It’s a scam in the sense that they tell you what you can and can not do with your money.
      Sep 27, 2018
    • New DuQvV7x
      Here I felt I was contributing to the Retirement future of my employees. Apparently I was just scamming them.

      Oh well. ¯\_( ˘͡ ˘̯)_/¯

      #WorstScamEver
      Sep 27, 2018
  • AMD Ryzen
    Yes. It's just risky
    Sep 27, 2018 0
  • New DuQvV7x
    Your plan administrator gets to make this decision on whether this is a possibility for your company.

    I’ve participated in writing 2 plans and I excluded this because 1. retirement money is not supposed to be gambling month & (especially) 2. It cost the plan more money

    Cheers

    Edit: Fidelity is just they custodian. They follow whatever the plan tells them
    Sep 27, 2018 7
    • Microsoft / Eng Tier 1
      Higher fees? But employees pay the trading fees.
      Sep 27, 2018
    • New DuQvV7x
      I can’t speak to all employee plans.

      The standard recipe for small businesses is you have a tiered plan from the custodian. The less features the cheaper cost.

      Less features = less cost and less headaches. The plan administrator attempts to strike a balance between what’s reasonable without the overhead.

      I didn’t allow equity trading or loans. Just mutual funds and later a basket of retirement-aged-tracking ETFs. Anything that generates paperwork overhead is harder on a small business.
      Sep 27, 2018
    • Microsoft return(0)
      Shit... right now microsoft allows stock trading with 401k (up to 90% of your balance). I wonder if I switch I’ll lose that...
      Sep 27, 2018
    • LinkedIn Yearning
      In Fidelity, you can transfer 401K money to a brokeragelink accout within 401K plan, and then invest in anything you want.
      Sep 27, 2018
    • New DuQvV7x
      No, not correct.

      Fidelity is a CUSTODIAN and must implement rules designed by the PLAN ADMINISTRATOR.

      These rules are NOT universal.
      Sep 27, 2018
  • Google QNrQ72
    No. It’s not risky
    Sep 27, 2018 0
  • LinkedIn Yearning
    Picture yourself investing your whole retirement money on the next Enron. Do you really want to start over and work after 60?
    Sep 27, 2018 2
    • Nvidia monolith
      OP
      Well that is one way of looking at it. Another way is you are putting it on sure growth stocks and making more than what the current growth is. Short term that is.
      Sep 27, 2018
    • New DuQvV7x
      Everyone makes this argument in a bull market.

      Nobody expects to die a car crash. Several do everyday.
      Sep 27, 2018
  • Google / Eng whatsgood
    Here’s the deal on the markets. No one knows what will happen. And that is the truth. What I am saying is that you use your insight to work in your favor. No, I’m not saying insider trading. I don’t even trade google although I may want to (and I’m just a low man on the totem pole I don’t know any material insider info). Do your homework. Do your analysis.

    For example, if you’re in tech It doesn’t take a genius to know that people hate oracle. They hate giving oracle money and they would much rather have options. So what do you do with that info? You short/buy puts on oracle. It doesn’t take a genius to know that Netflix is a major open source contributor and their tech is outstanding by any measure.

    Use your knowledge to get over on a market that no one can predict. Oh ya, if you think the market is at an all time high and it is not sustainable buy your VIX calls and spy puts.
    Sep 27, 2018 0
  • Compass / Eng
    FUPayMe

    Compass Eng

    PRE
    Google
    FUPayMemore
    Yep
    Sep 27, 2018 0

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