Spring, MO 401K Question

Discussion in 'Mid West Regional Discussion' started by DarthShoey, Feb 21, 2007.

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  1. DarthShoey Jedi Master

    Member Since:
    Oct 28, 2003
    star 4
    For anybody here that puts into a 401 K plan with their employer, what kind of return are you seeing percentage wise?

    I've got one that I have no say over where the $$ is invested. For the past couple of years, mine has been all over the place. (I'd like a little more say in where it's going, but that's not an option)

    Just curious to see if it's everywhere or if it's just with this plan.

    Cheers.
  2. jedi_runya Manager Emeritus

    Member Since:
    Jan 4, 2005
    star 4
    We have two! You should talk to Steve about it. We have one that has been giving good returns and one that wasn't set so risky and has ok returns, but the risky one has doubled in two years the total of the ok one... if that makes sense. Do you still have our number if you want to talk to him?
  3. spideymj Jedi Knight

    Member Since:
    Feb 4, 2005
    star 3
    LOl Ok, I talked to my main man, insurance man that is (my husband), and he asked..does your company match your 401k contribution? If so...its free money and an immediate return of what they match. If not, you should consider going outside of the company with a IRA, ROTH, or traditional IRA, that way you can select where your funds are invested. Darrell also said that most funds have been on the increase steadily in the past few years, not all over the place.
  4. DarthShoey Jedi Master

    Member Since:
    Oct 28, 2003
    star 4
    Yep, my company matches up to 2%, so I take advantage of that and put a little more in. Since it's pre-tax, I figure what the heck. But one quarter I'll get a 11% return (very good), the next it will 1% (not so good). It seems to be all over the place, that's why I was wondering %-wise.

    After Max came along, we started a Roth for each of us and a 529 (I believe, not sure if that's the right number, but I think it is) for his college. They're all long term - slow and steady.

    I've been considering just doing the 2% to get the match and trying the other $$ in another account, possibly an IRA. I have a friend that works at Edward Jones. Anybody know much on the IRA's?

    Also, My bank does these 6 month - 12 month CD deals all the time. But I'm thinking that's taxable income, isn't it?

    I need to research it more.

    But I don't have much will power, :) I'm worried if I take the extra $$ out of the 401K, it will never find it's way to other investments. The 'ol "out of sight, out of mind" :) I don't even see it now - so it's safe!!

  5. jedi_runya Manager Emeritus

    Member Since:
    Jan 4, 2005
    star 4
    I do know if you take out of the IRA before a certain date, it will cost you big. It did us and all we were doing was taking the money and putting it in a 401k.

    Steve's work gives a percentage of the companies earnings as a bonus at the end of the year for his 401k that is here...I am not sure if they do more during the year or not. But I would say that your's sounds like it is set up badly, to be all over the place--maybe too high of a risk account.
  6. JediCirrus Jedi Master

    Member Since:
    Oct 25, 2002
    star 1
    I'll go ahead and throw in my 2 cents....


    A lot of your choice should depend on your age. Without more detail, it sounds like your 401K is most likely in company stock (fairly common) if you have no control over where it goes. Any investment has a risk of fluctuations and it is to be expected. I've seen mine go from 16% one month to -2% the next. This is not unheard of. It depends on the market and how aggressive your portfolio is.

    If it was me, and I had no control over what companies and stocks the 401K was going into, I would just put in the 2% that they match into the 401K then invest more into something I had control over. Depending on your income and expected income at retirement, I would go with an IRA or Roth IRA. Bank CD's are good if you have a large sum of money that you need in X amount of time, usually months or years. You will not get as great a potential rate of return as investing it, but it is guaranteed.

    The common belief is if you are younger and plan on working until retirement, then it is more advantagous to go into a more aggressive (and volotile) portfolio. As you get older, you start to move it to a more stable investment.

    Anyways, hopefully I was able to not confuse you even more. Feel free to PM me if you have any questions I can help answer.
  7. DarthShoey Jedi Master

    Member Since:
    Oct 28, 2003
    star 4
    Thanks for the input everybody.

    JediCirrus - that's what my buddy at Edward Jones is trying to get me to do as well. Just match the 2% and give him the difference of what I normally put in. Problem there is me. I'm too tempted to spend it.

    When it comes to investing $$, I tend to be conservative. I've got a good 35-40 years left before I'll be ready to retire. I guess I'd rather see a decent, constant return vs. one that is all over the place.
  8. JediCirrus Jedi Master

    Member Since:
    Oct 25, 2002
    star 1
    The deciding factor for me would be can I get direct deposits from my paycheck into the other retirement/investment options.

    If the money had to go through my hands first, I'd most likely spend it all before I could put it away!!!
  9. DarthShoey Jedi Master

    Member Since:
    Oct 28, 2003
    star 4
    I've got the same problem!!
  10. jedi_runya Manager Emeritus

    Member Since:
    Jan 4, 2005
    star 4
    I would go for the long consistent return. I worry a lot trying to live in my retirement and being able to enjoy myself. And with the Markets all over the place right now, conservative sounds good, as well as not investing in overseas markets. :D
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