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.
No. It’s not risky
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
But why wouldnt you let people do what they wanna do with their own money?
Another way to think of that is: It’s my money as the plan administrator not to want to pay a higher tier of fees to Fidelity because 1 or 2 employees want to play stock-picker.
Yep
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.
Some of this is right. Except the scam part. The whole world is not in tech. 401k plans are not a requirement. Nobody is trying to steal your money. Small businesses do not have the resource capacity of large companies. But I feel a bit like I’m spitting into the wind. Blind is where employees kvetch about employers and not a reasoned discourse into the overheads of benefits management.
Is the self-directed 401K accurate? Is brokeragelink account at Fidelity one such account? Can i rollover my 401K in fidelity to Vanguard, while i’m still working at the company with fidelity 401K?
Picture yourself investing your whole retirement money on the next Enron. Do you really want to start over and work after 60?
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.
Everyone makes this argument in a bull market. Nobody expects to die a car crash. Several do everyday.
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.
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