Investing 401K on a particular stock

Nvidia
monolith

Go to company page 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

    Go to company page 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
    • Google / Eng
      whatsgood

      Go to company page 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

      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

    Go to company page AMD

    Ryzen
    Yes. It's just risky
    Sep 27, 2018 0
  • New
    DuQvV7x

    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
    • 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

      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

    Go to company page Google

    QNrQ72
    No. It’s not risky
    Sep 27, 2018 0
  • 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

      Go to company page 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

      New

      DuQvV7x
      Everyone makes this argument in a bull market.

      Nobody expects to die a car crash. Several do everyday.
      Sep 27, 2018