Announcement

Collapse
No announcement yet.

investment?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • investment?

    Hey all, I've been putting off setting up my 401K for the last 6 months and figured it's about time to sit down and put it together. I know how much I want to put in but since I'm a computer guy and not a financial person I have no idea were to put my money. This was the biggest reason i keep putting it off. Does anybody have any ideas. Should I go International, Tech, small business ect? I'm fairly young (25) and don't mind a little risk since I have time to get it back. Any help would be appreciated.
    President Cool

  • #2
    Originally posted by hilife
    Hey all, I've been putting off setting up my 401K for the last 6 months and figured it's about time to sit down and put it together. I know how much I want to put in but since I'm a computer guy and not a financial person I have no idea were to put my money. This was the biggest reason i keep putting it off. Does anybody have any ideas. Should I go International, Tech, small business ect? I'm fairly young (25) and don't mind a little risk since I have time to get it back. Any help would be appreciated.
    Maybe send a pm to topscribe - I think he knows about this kind of stuff. Good luck.


    Thanks to Bronco4Life and Medford Bronco for signature

    Rest in Peace - Darrent (27) and Damien (29

    Comment


    • #3
      Originally posted by hilife
      Hey all, I've been putting off setting up my 401K for the last 6 months and figured it's about time to sit down and put it together. I know how much I want to put in but since I'm a computer guy and not a financial person I have no idea were to put my money. This was the biggest reason i keep putting it off. Does anybody have any ideas. Should I go International, Tech, small business ect? I'm fairly young (25) and don't mind a little risk since I have time to get it back. Any help would be appreciated.
      International has been hot for quite a few years. There seems to be some debate as to how long that will continue. I have probably 40% of my 401k in international, which most would consider too heavily weighted international.

      Tech has been pretty topsy turvey for a while, and small cap/low priced stock funds can return a bunch or do very poorly.

      Your best bet is to spread your money a bit. Maybe some in an S&P 500 fund, which will keep you in line with the market as a whole, some large cap growth, etc. You can look at the funds your 401k offers and see which ones have done the best in the last 3 months and YTD, as well as longer term (1 year, 3 years, 5 years) and try and pick some that are both doing well now and have historically been good.

      One other thing to consider. Many people think the market is due for a pull back and is overpriced, especially with bond yields rising. Combine that with the fact that historically, the market tends to struggle and sometimes take a dive between May and October, and another option would be to put money into a money market for a few months and then in October, or so, move it into stock funds.

      A lot of it depends on how much you will be putting in over the next few months, and whether you care if it might decrease in value by 10-20% if there is a bloody summer.
      The human body has two ends on it: one to create with and one to sit on. Sometimes people get their ends reversed. When this happens they need a kick in the seat of the pants. --- Theodore Roosevelt

      sigpic

      Comment


      • #4
        Originally posted by tnedator
        International has been hot for quite a few years. There seems to be some debate as to how long that will continue. I have probably 40% of my 401k in international, which most would consider too heavily weighted international.

        Tech has been pretty topsy turvey for a while, and small cap/low priced stock funds can return a bunch or do very poorly.

        Your best bet is to spread your money a bit. Maybe some in an S&P 500 fund, which will keep you in line with the market as a whole, some large cap growth, etc. You can look at the funds your 401k offers and see which ones have done the best in the last 3 months and YTD, as well as longer term (1 year, 3 years, 5 years) and try and pick some that are both doing well now and have historically been good.

        One other thing to consider. Many people think the market is due for a pull back and is overpriced, especially with bond yields rising. Combine that with the fact that historically, the market tends to struggle and sometimes take a dive between May and October, and another option would be to put money into a money market for a few months and then in October, or so, move it into stock funds.

        A lot of it depends on how much you will be putting in over the next few months, and whether you care if it might decrease in value by 10-20% if there is a bloody summer.
        My 401k allows me to move my funds between different markets. I follow the EEC and EFA every day and move my stuff in and out of the International market accordingly. I bounce it between my higher risk fund based off of the International market and my Government funds, which are super low risk and never go down. So far this year I have only put in maybe $500 (money has been tight since the wife isn't working) but I have made more than double that. EFA hit a new 52wk high a couple of weeks ago and I was in for that, then out when it dropped about $1/share and when back in before it went up. It's good stuff. Office jobs have their upside.
        Originally posted by Soldier96B
        i also took a crap and it was orange

        Comment


        • #5
          Originally posted by SeeingRed
          My 401k allows me to move my funds between different markets. I follow the EEC and EFA every day and move my stuff in and out of the International market accordingly. I bounce it between my higher risk fund based off of the International market and my Government funds, which are super low risk and never go down. So far this year I have only put in maybe $500 (money has been tight since the wife isn't working) but I have made more than double that. EFA hit a new 52wk high a couple of weeks ago and I was in for that, then out when it dropped about $1/share and when back in before it went up. It's good stuff. Office jobs have their upside.
          I used to move stuff, or at least review, every few months, but now I am doing it far less. I have decided to lower risk a bit and am using an assett allocation model across my 401k and non-401k investments. As a result, I have to resist moving stuff around too much.
          The human body has two ends on it: one to create with and one to sit on. Sometimes people get their ends reversed. When this happens they need a kick in the seat of the pants. --- Theodore Roosevelt

          sigpic

          Comment


          • #6
            Originally posted by tnedator
            I used to move stuff, or at least review, every few months, but now I am doing it far less. I have decided to lower risk a bit and am using an assett allocation model across my 401k and non-401k investments. As a result, I have to resist moving stuff around too much.
            The only reason I just don't leave it in the International is because, as of right now, I'm not contributing to it, so I'm trying to capitalize as much as possible.

            there are other funds that I can transfer my money in to, but I'm making quite a bit with the system I'm using right now.
            Originally posted by Soldier96B
            i also took a crap and it was orange

            Comment


            • #7
              interesting. sounds like international might be the way to go but I won't put all in to that area. I'll probably put 70% of the total amount in a medium high to high risk area and put the rest in something more conservitive. I didn't know about the May to Oct. thing. Will have to look into that and plan around that. Thanks for everyone's help.
              President Cool

              Comment


              • #8
                Originally posted by hilife
                interesting. sounds like international might be the way to go but I won't put all in to that area. I'll probably put 70% of the total amount in a medium high to high risk area and put the rest in something more conservitive. I didn't know about the May to Oct. thing. Will have to look into that and plan around that. Thanks for everyone's help.
                My international (in 401k and out) was completely murdered last summer, but eventually came back. I don't know the statistics exactly, but they say something like historically 95% of the market gains occur from October to May and 5% occur from May to October.

                Those percentages are going to be off, but it is something like that. Some people attempt to time the market as a result, and many people move money into money markets, or some other highly conservative investments in the summer months. Sometimes that can be hard, because you can take a capital gains hit be selling stocks that have appreciated, but you still plan to keep long term.

                The flip side is that this May has been pretty good, so you can't take the May to October thing as gospel, but historically, or long periods of time, the summer is usually a topsy turvey time.
                The human body has two ends on it: one to create with and one to sit on. Sometimes people get their ends reversed. When this happens they need a kick in the seat of the pants. --- Theodore Roosevelt

                sigpic

                Comment


                • #9
                  Originally posted by tnedator
                  My international (in 401k and out) was completely murdered last summer, but eventually came back. I don't know the statistics exactly, but they say something like historically 95% of the market gains occur from October to May and 5% occur from May to October.

                  Those percentages are going to be off, but it is something like that. Some people attempt to time the market as a result, and many people move money into money markets, or some other highly conservative investments in the summer months. Sometimes that can be hard, because you can take a capital gains hit be selling stocks that have appreciated, but you still plan to keep long term.

                  The flip side is that this May has been pretty good, so you can't take the May to October thing as gospel, but historically, or long periods of time, the summer is usually a topsy turvey time.

                  The more I talk to people and look into this the more I think investment is just gambling for the thinking man. You do some research, roll the dice, make a few prayers and hope for the best.
                  President Cool

                  Comment


                  • #10
                    Originally posted by hilife
                    The more I talk to people and look into this the more I think investment is just gambling for the thinking man. You do some research, roll the dice, make a few prayers and hope for the best.
                    Yes and no. 'Speculation' where you try and outguess the market (such as market timing) or try and pick the next Wal-Mart, Cisco, Micro-soft, etc, is gambling to a degree.

                    On the other hand, if you use asset allocation, or buy broach market funds, like some that are referred to as "total market" or something similar, then you will essentially rise or fall in line with the general market, and history has shown time and time again that over the long run the stock market will go up.
                    The human body has two ends on it: one to create with and one to sit on. Sometimes people get their ends reversed. When this happens they need a kick in the seat of the pants. --- Theodore Roosevelt

                    sigpic

                    Comment


                    • #11
                      Originally posted by tnedator
                      Yes and no. 'Speculation' where you try and outguess the market (such as market timing) or try and pick the next Wal-Mart, Cisco, Micro-soft, etc, is gambling to a degree.

                      On the other hand, if you use asset allocation, or buy broach market funds, like some that are referred to as "total market" or something similar, then you will essentially rise or fall in line with the general market, and history has shown time and time again that over the long run the stock market will go up.
                      Exactly!

                      Just track the general market and you should do alright in the long run. It’s still “speculation,” in that nothing is certain under the sun. But, historically speaking, the stock market trend is always upwards, over the years. Even if you had a paltry hundred bucks in the market prior to the Crash of ’29—and did not sell, did not jump out of a window, did not buy on margin—you would most likely be a millionaire (or multi?) today.

                      The most dramatic market slump over the past decade, of course was after 9/11. During this slump, I just upped my 401-k contributions to the max. In other words, I bought more stocks (shares)—at bargain prices—and am delighted that I did so today!

                      Yes, I had faith in the long-term run of the market. And that is speculation, of course.
                      Life, for me, has been an ongoing education. When Graduation Day arrives, my diploma will be my death certificate.

                      Comment


                      • #12
                        Originally posted by buckland
                        Exactly!

                        Just track the general market and you should do alright in the long run. It’s still “speculation,” in that nothing is certain under the sun. But, historically speaking, the stock market trend is always upwards, over the years. Even if you had a paltry hundred bucks in the market prior to the Crash of ’29—and did not sell, did not jump out of a window, did not buy on margin—you would most likely be a millionaire (or multi?) today.

                        The most dramatic market slump over the past decade, of course was after 9/11. During this slump, I just upped my 401-k contributions to the max. In other words, I bought more stocks (shares)—at bargain prices—and am delighted that I did so today!

                        Yes, I had faith in the long-term run of the market. And that is speculation, of course.

                        Yep, dead on. What you say about the crash of '29 is right on. Most people don't realize that this crash and all the people jumping out windows and stuff, did not lose everything because of the crash, but instead because 'speculating' on the stock market with borrowed money (on margin) had become popular, and people were investing money that wasn't theirs.

                        If you borrow 10,000 to put in the stock market, then you need to have enough collateral to cover it. If that stock drops in half and now is worth 5,000, then your loan gets called and you have to sell at a loss, pay your debt and still are 5,000 in the hole, which means the lender goes looking for other assets (homes, cars, etc.).

                        The people that left their money in the market witnessed it rebound in a very short period of time. The people that had more money to invest right after the crash, made tons of money when it rebounded.
                        The human body has two ends on it: one to create with and one to sit on. Sometimes people get their ends reversed. When this happens they need a kick in the seat of the pants. --- Theodore Roosevelt

                        sigpic

                        Comment


                        • #13
                          Originally posted by tnedator
                          Yep, dead on. What you say about the crash of '29 is right on. Most people don't realize that this crash and all the people jumping out windows and stuff, did not lose everything because of the crash, but instead because 'speculating' on the stock market with borrowed money (on margin) had become popular, and people were investing money that wasn't theirs.

                          If you borrow 10,000 to put in the stock market, then you need to have enough collateral to cover it. If that stock drops in half and now is worth 5,000, then your loan gets called and you have to sell at a loss, pay your debt and still are 5,000 in the hole, which means the lender goes looking for other assets (homes, cars, etc.).

                          The people that left their money in the market witnessed it rebound in a very short period of time. The people that had more money to invest right after the crash, made tons of money when it rebounded.
                          You must spread some Contributor Status around before giving it to tnedator again.
                          Life, for me, has been an ongoing education. When Graduation Day arrives, my diploma will be my death certificate.

                          Comment

                          Working...
                          X