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A few questions.

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CecilHarvey
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A few questions.  Reply with quote  

I've been working for about 6 years and I put around 12% into my 401k.

Also I participate in a stock buying program as well.

Should I increase or lower my 401%? Or should I buy more stock with it?

What would you guys do in my situation.
Post Wed Oct 23, 2013 4:12 am
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coaster
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Is this your company's stock you're buying?

~Tim~
Post Wed Oct 23, 2013 4:27 am
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CecilHarvey
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Yes, I get a 15% discount on it if I hold onto it for an entire year, no commissions, no fees, either

I put $45 a week into stock.
If I worked 40 hours a week, my gross annual income is a mere $25,792 but I usually make closer to 30,000+ a year on average


I'm also a bit of a silverbug I buy a troy ounce of silver every month or so. I do like gold but its too expensive(even the 1/10th gold eagle $5 is around $160 each and the full $50 gold eagle is around $1450 a troy ounce)
Post Wed Oct 23, 2013 5:36 am
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Wino
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quote:
Originally posted by coaster
Is this your company's stock you're buying?
quote:
Originally posted by CecilHarvey
Yes, I get a 15% discount on it if I hold onto it for an entire year, no commissions, no fees, either


You should research "ENRON" on the internet. If your company goes under (even if for normal business reasons and not fraud or other illegal activities), then you'll lose not only your job, but you'll lose a significant amount of your savings.

I recommend only putting enough into your 401K to get the match, and then putting the rest into Vanguard, T Rowe Price, or Fidelity funds.

I also think you're basically wasting your money on the precious metals. They may or may not go up, but based ONLY on emotion, and nothing at all on fundamentals. Basically, silver is useful for the same purposes in 20 years as it is now, but Apple is useful quite a bit more than it was 20 years ago, increasing its value. The "value" of metals is only what people are willing to pay for them.
Post Wed Oct 23, 2013 8:30 am
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littleroc02us
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I also would pass on the precious metals investments or as the IRS calls them collectibles (no different then collecting coins, art and stamps) which are taxed at 28% if held for longer then 12 months. Plus now that most people feel the recession is over and the economy is improving that Gold has crashed for example over the past year and no one wants it anymore.

As for buying single stock. To me that is scary as well. Just as Wino states, if the company goes belly up most likely all of your money is gone. I'd rather trust 500 (S&P 500) of america's greatest companies with my investments, because most likely all 500 will perform well if the economy is stable. I guess if you are a gambler then single stock can make or break you and that can create quite the adrenline rush. Smile

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Oct 23, 2013 2:49 pm
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coaster
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I'd suggest something of a middle road: continue your current 401(k) contributions (you're already putting in a higher percentage than most people, so kudos to you); also continue buying the company stock, since you're getting it at a discount, but buy no more than half of what your 401(k) contribution amounts to, and if the amount of stock you own (market value, that is) exceeds one-third (or whatever smaller amount you're more comfortable with) of your net worth, then just discontinue buying it for a while until your other assets catch up.

There's no problem with accumulating precious metals, so long as it doesn't take away from any of your other wealth-accumulation strategies. Silver is undervalued with respect to gold, so buying it instead of gold is a decent precious metals strategy. You could improve on that strategy by accumulating the funds until you have enough to buy a bar instead of buying it a coin at a time. The markup and shipping buying it that way increases the cost basis way too much. And I'd suggest not more than 10 percent of your assets in precious metals.

You're doing very well, and reviewing your strategy periodically, as you're doing now, is also wise.

Best wishes and good luck; though I don't think you'll need the luck much. Wink

~Tim~
Post Wed Oct 23, 2013 3:40 pm
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CecilHarvey
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I also like dividend paying stocks.
The ones I have in mind are:

Hasbro $0.40 a quarter/$1.40 annually
Pepsico $0.5675 a quarter/ $2.27 annually
GME(Game stop) $0.275/ $1.10 annually
DRI/Darden $0.55 quarterly/ $2.20 annually

and last but certainly not least

WMT/walmart $0.47 quarterly/ $1.88 annually

I understand all investments have risk. Even cash has risk and it even has counter party risk.

Also I thank you all for your input and feedback, thanks.
Post Fri Oct 25, 2013 3:04 am
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coaster
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quote:
Originally posted by CecilHarvey
Even cash has risk and it even has counter party risk..
(my emphasis added)

Nice point ... quite true ... and never heard mentioned here before, so kudos to you.

Wink

~Tim~
Post Fri Oct 25, 2013 5:10 am
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Wino
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It sure is tough holding gold during its collapse, isn't it, GR? You better keep pumping it up with forum posts on random google-searched sites so that gold doesn't lose even more of its imaginary value, causing you even more losses.

My suggestion is you sell your gold and silver and invest in companies that are well-run, such as Apple, Google, Home Depot, General Electric, Coca Cola, Exxon, and about 494 others. Or, you can keep watching gold's value percolate along with people's perceptions and your (and others') ability to pump it up to those who are unaware that it is not an investment.

Or, you can bury it in the backyard along with your other valuables and wait for them to increase in value. Had you buried a "telescoping Darth Vader" Star Wars collectible in 1978 in your backyard, it would have increased in value, too, just like your gold, and for the same reason: Someone else is willing to pay more for it than you paid, but for no other reason.

http://actionfigures.about.com/od/historyofactionfigures/tp/top_5_starwars.htm
Post Mon Oct 28, 2013 3:45 am
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