| A smart solution for a dumb move! |
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eversun
Contributing Member
Cash: $ 6.25
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Joined: 31 Mar 2006
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| A smart solution for a dumb move! |
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Dumb move : Cashing out your 401(k)
Leave your 401(k) alone when you leave your job. If you cash out, not only will you pay a 10 percent penalty and income taxes, but you'll also lose out on future tax-free growth.
Smart alternative: Max out your saving
Put as much as you possibly can into your 401(k). Assuming a 7 percent return and a 50 percent match, upping your annual contribution by one grand and keeping that up for 30 years will fatten your nest egg by $153,110.
Check out for more of this in fortune.com.
http://justshutupandletmetalk.blogspot.com
___________________________
www.prosper.com
Lend. Borrow. Prosper
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http://prosperousblog.blogspot.com
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Tue Apr 11, 2006 5:15 pm |
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coaster
Senior Advisor
Cash: $ 1358.20
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Location: Wisconsin
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Good advice. 
~Tim~
Eye Candy : Why Whimsy
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Tue Apr 11, 2006 6:11 pm |
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mbd
Member
Cash: $ 4.60
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Joined: 31 Mar 2006
Location: Rogers, AR
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Another viable alternative is direct rollover into a traditional IRA at a discount broker. This will almost always result in a wider selection of investments. In personal finance, I find simplicity to be the best policy. If one has left accounts at multiple employers, these can all be consolidated in a single IRA. Allocation adjustments then become simpler as well, and future qualified contributions can also go into the same account.
Everything Money Podcast and Forum
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Tue Apr 11, 2006 6:27 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Good advice.
Except....if you get a measely 7%, you are doing something wrong! AVERAGE is 11%.
"Expect me when you see me."
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Wed Apr 12, 2006 2:48 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Location: Illinois
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Average for the market may be 11+%, but the average investor only returns approximately 3% - due primarily to investor anxiety, buying high and selling low, etc..
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Mon May 22, 2006 6:35 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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quote:
Originally posted by BlankenshipFP
the average investor only returns approximately 3% - due primarily to investor anxiety, buying high and selling low, etc..
Really!? wOw. Most people do need to just make deposits and LEAVE IT ALONE!
Do you know the bona fide average for diversified buy-and-holders? I would expect it to be around the overall average, maybe a little more.
"Expect me when you see me."
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Mon May 22, 2006 11:53 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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Yeah, it's a pretty dismal figure. Dalbar reports on it annually (www.dalbar.com), but I've never seen a report about "buy and holders". Probably because they're hard to find! But you're right, that number should be similar to the overall market.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Tue May 23, 2006 12:10 am |
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profitmagic
Full Member
Cash: $ 5.01
Posts: 58
Joined: 18 Dec 2004
Location: Poulsbo, Washington
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| A Self-Directed Roth IRA with a Managed Forex Account - 40%+ |
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Well CD's are out. Day Trading is only for those who have a special skillset. Buy and hold is good, sometimes, but not really. You have to check. If you bought Microsoft at $15 you should have sold it at $150. Its back to $20 something now.
The only thing I have found is a managed forex trading account. A good Professonal manager can double the account in 2 -3 months, which makes for serious money in 2-3 years. You can also learn how to trade like the professionals, but its not free.
Then if you are under 50 keep making you annual contribution to your Roth and any other retirement accounts you have. If you have (401)k's rollover into your Roth at the appropriate time. Its a 2-step process.
Gold on a retrace could be nice too! Too high right now, though.
Sincerely,
GeorgeB
Don't accept low return CD's or Stocks for one more day.
Rollover your IRA into a Self-Directed Account.
Then get a Managed Forex Trading account for maximum tax free gain.
www.rollovertohappiness.com
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Thu May 25, 2006 7:25 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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| Re: A Self-Directed Roth IRA with a Managed Forex Account - |
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quote:
Originally posted by profitmagic
Buy and hold is good, sometimes, but not really.
When is buy-and-hold 'not really good'? It never fails.
Contrarily, you mean to tell us that your schpiel that you are plastering all over the board consistenly doubles your money every 2-3 months for 2-3 years? I think that has a higher probability of failing.
"Expect me when you see me."
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Thu May 25, 2006 11:04 pm |
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profitmagic
Full Member
Cash: $ 5.01
Posts: 58
Joined: 18 Dec 2004
Location: Poulsbo, Washington
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quote:
When is buy-and-hold 'not really good'? It never fails.
Oh sure, never fails. Never means 100%, right? So if there is just one example where buy and hold was not a good idea then it proves my point. One good example is:
Enron
Just ask the folks who had the buy and hold mentality on that one how much they like it now. The problem here is that people that believe they can buy and hold are doing themselves a real disservice when they don't at least monitor what their investments are doing.
The stock exchange floor is littered with bankrupt companies that were high fliers one day and infamous the next. Same deal with banks. They may look solid one day and rotten the next. How can an outsider possibly know this stuff in time? Answer, most can't. So trust, but verify.
You may want to buy and hold. I'll check along the way, thank you.
The Forex market will be with us for a long time to come. There are many successful trading systems that Profesional managers use. They have to earn their keep to eat. Some are better than others. The manager I work with routinely doubles accounts in 2-3 months after management expenses. He also has many protege's who can fill in for him when he is away. His system is really good. He does not have access to the money in the account. He can only trade the account. The account can be closed anytime something seems wrong with the balance being returned to the owner.
If this seems incredible to you then it probably isn't for you. Flash back 100 years and explain the internet or putting a man on the moon, etc, etc. and see how many people will believe it back then let alone think about putting money into those endeavors. Same difference today. Some people have vision and some don't. Human nature.
I am not trying to change human nature. Only inform those who may be interested in what I have found.
Sincerely,
GeorgeB
Don't accept low return CD's or Stocks for one more day.
Rollover your IRA into a Self-Directed Account.
Then get a Managed Forex Trading account for maximum tax free gain.
www.rollovertohappiness.com
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Fri May 26, 2006 3:51 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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quote:
Originally posted by profitmagic
So if there is just one example where buy and hold was not a good idea then it proves my point.
No, that just means that you are only interested in facts which quantify your point and not in the overall truth.
Buy-and-hold is a tenet of diversification. If one held Enron in a properly diversified portfolio, the loss to the portfolio would have been minimal. Over any ten-year period since 1925, this approach succeeds 95% of the time; in any 15-year period, 100%. It does not fail.
Note that I neither diversify nor do I buy-and-hold, but I can recognise its merit and recommend where appropriate.
quote:
Originally posted by profitmagic
The stock exchange floor is littered with bankrupt companies that were high fliers one day and infamous the next. Same deal with banks. They may look solid one day and rotten the next.
Same thing with currencies.
quote:
Originally posted by profitmagic
How can an outsider possibly know this stuff in time? Answer, most can't.
Same applies to forex traders. 'Professional' <> 'insider'.
quote:
Originally posted by profitmagic
So trust, but verify.
That is what I am doing, comrade. BTW, quoting the greatest post-WWII president doesn't salvage the quality of your post. 
quote:
Originally posted by profitmagic
There are many successful trading systems that Profesional managers use.
There are stock market trading systems as well. You cite 'insider' and 'professionals' but a trading system's purpose is to remove human thought from the process so we don't muck it up. So...can you be more specific?
quote:
Originally posted by profitmagic
They have to earn their keep to eat.
So do used car salesman; what's your point? Hunger makes a person honest?
quote:
Originally posted by profitmagic
The manager I work with routinely doubles accounts in 2-3 months after management expenses.
Yes, you said that. How long has he been doing this? Can you substantiate that a little? If not, how can one, as you say, 'verify'?
quote:
Originally posted by profitmagic
If this seems incredible to you then it probably isn't for you.
You are correct, because I like credible things. 
quote:
Originally posted by profitmagic
Flash back 100 years and explain the internet or putting a man on the moon, etc, etc. and see how many people will believe it back then let alone think about putting money into those endeavors.
Is that why your nick is 'profitmagic'...because the rest of us are soooo ignorant that we can only explain it as 'magic'? bahaha
You could have explained your 'system', but instead you try to insult my intelligence, my knowledge? What does that say about yours?
quote:
Originally posted by profitmagic
Some people have vision and some don't. Human nature.
Because I am skeptical and ask questions, I have no 'vision'? You sound wholly defensive, insecure.
quote:
Originally posted by profitmagic
Only inform those who may be interested in what I have found.
I am inquiring to be informed, but all you've given me is an outrageous promise and a personal insult for not blindly believing it.
I'll see your president and raise you G-d: "Prove all things. Hold on to the good." --1 Thessalonians 5:21
"Expect me when you see me."
Last edited by Rolo on Fri May 26, 2006 12:26 pm; edited 2 times in total |
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Fri May 26, 2006 11:57 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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There are more rules to successful investing experience than just the buy and hold concept. Another rule is "don't put all of your eggs in one basket", or you'll have an Enron problem.
Yet another rule is "Rome wasn't built in a day" - so don't expect your portfolio to double every three months. This just won't happen, sustainably, no matter who your investment manager is. If this could happen sustainably, the resulting worldwide inflation would soon overtake us all...
It is true that things are constantly changing in the world around us, but there are constants that remain, and these constants are the foundations of successful long-term investing.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri May 26, 2006 12:07 pm |
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profitmagic
Full Member
Cash: $ 5.01
Posts: 58
Joined: 18 Dec 2004
Location: Poulsbo, Washington
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quote:
Buy-and-hold is a tenet of diversification. If one held Enron in a properly diversified portfolio, the loss to the portfolio would have been minimal. Over any ten-year period since 1925, this approach succeeds 95% of the time; in any 15-year period, 100%. It does not fail.
This is the correct approach for those who are financially able to "properly diversified (their) portfolio".
quote:
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Originally posted by profitmagic
The stock exchange floor is littered with bankrupt companies that were high fliers one day and infamous the next. Same deal with banks. They may look solid one day and rotten the next.
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Same thing with currencies.
Example please. Unless you are talking about the fiat money the entire world is using at this time in our history which, by the way has no alternative but to trade in a market of some kind to establish relative values between currencies.
quote:
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Originally posted by profitmagic
How can an outsider possibly know this stuff in time? Answer, most can't.
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Same applies to forex traders. 'Professional' <> 'insider'.
Again, explain please. Greenspan and now Bernacke can influence the market and the Fed trades currencies. Are they insiders? Only in the very beginning of the Forex market has a Central Bank been able to turn a market. The Bank of Japan found out the hard way that all they could was influence the market not turn it in their favor for very long.
quote:
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Originally posted by profitmagic
The manager I work with routinely doubles accounts in 2-3 months after management expenses.
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Yes, you said that. How long has he been doing this? Can you substantiate that a little? If not, how can one, as you say, 'verify'?
He is the one who discovered that the markets move according to the fibonacci sequence over 30 years ago. It is not a mechanical system. It is a mathematical trading system that is very, very accurate. There is plenty of documentation that backs this up.
Sincerely,
GeorgeB
Don't accept low return CD's or Stocks for one more day.
Rollover your IRA into a Self-Directed Account.
Then get a Managed Forex Trading account for maximum tax free gain.
www.rollovertohappiness.com
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Fri May 26, 2006 2:39 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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quote:
Originally posted by profitmagic
He is the one who discovered that the markets move according to the fibonacci sequence over 30 years ago. It is not a mechanical system. It is a mathematical trading system that is very, very accurate. There is plenty of documentation that backs this up.
You have W.D. Gann managing your investments? Astounding. He died in 1955.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri May 26, 2006 6:19 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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quote:
Originally posted by profitmagic
This is the correct approach for those who are financially able to "properly diversified (their) portfolio".
Everyone with finances is financially able.
quote:
Originally posted by profitmagic
He is the one who discovered that the markets move according to the fibonacci sequence over 30 years ago.
The same applies to stocks, commodities, and anything that trades in an open market. That is one facet of Western technical analysis. Eastern methods also apply and they both work well in concert.
quote:
Originally posted by profitmagic
It is not a mechanical system. It is a mathematical trading system
That is what 'mechanical' means....you trade on mechanics, not human interpretation.
quote:
Originally posted by profitmagic
There is plenty of documentation that backs this up.
Put up or shut up...sheesh...out with the documentation already.
"Expect me when you see me."
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Fri May 26, 2006 6:22 pm |
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