The Stock Market and Investing

Michaell

kyfdx said:

Sandman6472 said:

PrimeCap seems to be closed to new investors it seems. Did find a few target date funds that could also work. Like a Balanced fund and like the low administrative costs that Vanguard has which is why I was with them many years ago. Since I have some extra funds sitting in my savings account making almost nothing, might as well put it to good use for the time being.

If you want some bond exposure, target date funds are a great vehicle, especially if you are 65 plus

I've got my 401(k) in a target date fund, but am having thoughts about moving it all to an IRA. Have had conversations with a CFP from Fidelity.

kyfdx

There are things you can do with an IRA, that you can't do with a 401K.

Mostly related to QCDs. But, it looks like we won't have RMDs until 75, now, so we have some time to think about it.

Michaell

QCD?

corvette

Qualified Charitable Distribution, I assume. Also, Roth conversions aren't allowed in some 401k plans, and direct investment in individual stocks or ETFs is usually restricted to 50% of the account balance. 401k plans (arguably) offer better asset protection from creditors.

The target date funds aren't always a great match for taxable accounts, but if we're talking about tax-deferred, Roth, or HSA, I think they're a great choice--that's what I have in those accounts.

Michaell

corvette said:

Qualified Charitable Distribution, I assume. Also, Roth conversions aren't allowed in some 401k plans, and direct investment in individual stocks or ETFs is usually restricted to 50% of the account balance. 401k plans (arguably) offer better asset protection from creditors.

The target date funds aren't always a great match for taxable accounts, but if we're talking about tax-deferred, Roth, or HSA, I think they're a great choice--that's what I have in those accounts.

I guess it's tax deferred, since it's a 401(k). Turns out the date rated funds are not all created equal, and the one I'm with at Fidelity has more risk in it than we're comfortable with, hence the discussion to make the switch.

kyfdx

If you plan on living another 30 years, risk is your friend, when it comes to investing.

laurasdada

Sandy, don't forget you can easily get 4+% interest rate for your idle funds with online savings accounts.

Yes, time is your friend. While timing might not be.
Oracle stock I've owned for (too many?) years has recently begun a healthy move upwards, pulling back this week. Of course.

corvette

With the target date funds, the commonly used trick if they are too aggressive / not aggressive enough for your desired glide path is to switch to a different target year. You generally get the same funds, in a different composition.

Michaell

corvette said:

With the target date funds, the commonly used trick if they are too aggressive / not aggressive enough for your desired glide path is to switch to a different target year. You generally get the same funds, in a different composition.

Probably true, but I've also learned that each company has a different mix of investments for the same target date year. In my case, I've got 2030 funds. For Fidelity, the mix of stocks and bonds may currently be 60/40, but it could be 50/50 for Schwab.

kyfdx

corvette said:

With the target date funds, the commonly used trick if they are too aggressive / not aggressive enough for your desired glide path is to switch to a different target year. You generally get the same funds, in a different composition.

Good advice. In our case, we've picked a later target date, to be more aggressive, but still have some bond exposure.

Sandman6472

Would love to get another 30 in but, think more like 25 would be doable. But, my grandma from the old country did live to be 103, so there's some long life genes on my side. We shall see.

Michaell

Any opinions about annuities?

stickguy

Whoever sells them to you makes a lot of money.

corvette

Agree with @stickguy. I've heard the Fidelity reps push them pretty hard.

laurasdada

What stick said, but if you get a fixed annuity (not fancy, indexed, variable, etc.), and understand all the details, may be a decent part of the portfolio.
Beware of riders!

laurasdada

And, hating the second half stock market so far.

xwesx

laurasdada said:

And, hating the second half stock market so far.

The never-ending roller coaster. I think we should get a complimentary doggie bag with every trade.

stickguy

this week I feel less guilty that I rolled over all the old 401Ks to VG and still have the money sitting in the money market fund (I think paying about 5% still).

stickguy

so if someone can tell me what day the S&P will bottom out so I can buy in, I would be grateful!

laurasdada

So far, I'm not liking the January Effect as much as I had hoped to.

kyfdx

laurasdada said:

So far, I'm not liking the January Effect as much as I had hoped to.

Pretty big run into year end.. bound to slow that roll.

corvette

My portfolio is back to where it was (or better), pre-pandemic. Of course, I've contributed a decent chunk, in the interim.

kyfdx

corvette said:

My portfolio is back to where it was (or better), pre-pandemic. Of course, I've contributed a decent chunk, in the interim.

It's easier for me to track, as I don't contribute, just take. And, yet.. I have as much as I've ever have had. The 4th quarter of 2023 was very good.

laurasdada

corvette said:

My portfolio is back to where it was (or better), pre-pandemic. Of course, I've contributed a decent chunk, in the interim.

Ditto.
But I'm trying to get to 11.

corvette

laurasdada said:

But I'm trying to get to 11.

https://www.youtube.com/watch?app=desktop&v=df5iwY7QUTY