polksalet Posted July 4, 2008 Share Posted July 4, 2008 Simply put, Wally puts money in her 401k. They put money in whether we do or not. I just looked at the thing and she has over 41k in there. I wonder what the ror for that model? Anyway we have always believed in investing outside of a 401k because of the matching situation Wally provides. However we have thought about throwing a couple of % in there and let it ride. We rally plan on being retired a long time before we are eligble to take the money out. So anyway, what do you guys think about this? I am looking at nealy 30 years before we pull it out so stability of capital is of very little consideration for me. I know what my financial counselor (Dave) would say to do but I am curious what you guys think AIM INTERNATIONAL GROWTH FUND (CLASS A SHARES) AMERICAN EUROPACIFIC FUND (CLASS R4 SHARES) ARIEL FUND DAVIS NY VENTURE FD CL FRANKLIN SMALL-MID CAP GROWTH FUND (CLASS A SHARES) MFS MASSACHUSETTS INVESTORS GROWTH STOCK FUND (CLASS A SHARES) MERRILL LYNCH EQUITY INDEX TRUST 1 (CLASS A SHARES) MERRILL LYNCH SMALL CAP INDEX TRUST Wally Stock Canned version "AGGRESSIVE MODEL The GoalManager Aggressive Model assumes investment of 5% of its assets in the stable value option (Merrill Lynch Retirement Preservation Trust), 15% of its assets in the bond fund (PIMCO Total Return Fund Admininstrative Class) and 80% of its assets in the stock funds (14% Davis New York Venture Fund, 14% Merrill Lynch Equity Index Trust Tier I, 14% MFS Massachusetts Investors Growth Stock Fund , 6% Franklin Small Mid Cap Growth Fund , 6% Ariel Fund, 6% Merrill Lynch Small Cap Index Trust Tier I and 20% American EuroPacific Growth Fund ). Because 80% of its assets are invested in stock funds, both the risk and potential return of this Model are expected to be the highest of the three Models. " Quote Link to comment Share on other sites More sharing options...
Puddy Posted July 4, 2008 Share Posted July 4, 2008 I truly believe we are fooling ourselves if we think we can predict which funds will outperform others on a going forward basis. With 30 years to go just make sure you have 100% in equities. If you don't want to attempt to beat the market over the long haul, see if you can invest in an index fund. Vanguard actually has these target retirement date funds, i.e. Vanguard 2025, Vanguard 2030, etc... It moves to safer investments the closer you get to your target retirement date. Maybe the she has that type of option. Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 4, 2008 Author Share Posted July 4, 2008 I truly believe we are fooling ourselves if we think we can predict which funds will outperform others on a going forward basis. With 30 years to go just make sure you have 100% in equities. If you don't want to attempt to beat the market over the long haul, see if you can invest in an index fund. Vanguard actually has these target retirement date funds, i.e. Vanguard 2025, Vanguard 2030, etc... It moves to safer investments the closer you get to your target retirement date. Maybe the she has that type of option. Yep, they have some index funds. I went and picked the six best funds over the last 5 and 10 years and invested in them nearly equally. I guess the worst I can do with that much diversification is come out where the S&P would be, I guess I mean I am no stock or fund picker. I am apparently now invested in Europe, the Far East, in Wal-Mart stocks, small and mid cap American funds, and a tiny bit (less than 2%) in Wal-Mart's retirement fund. I had to take it to get the Wal-Mart stock. We still do the company match stock purchase game as well as their profit sharing plan. That thing sucks at like 4% and I am trying to figure out how to bail out of it. Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 4, 2008 Author Share Posted July 4, 2008 Oddly you mave an unlimited amount of moves per day. I guess you could change your funds 100 times a minute if you were quick enough. Quote Link to comment Share on other sites More sharing options...
muck Posted July 4, 2008 Share Posted July 4, 2008 Oddly you mave an unlimited amount of moves per day. I guess you could change your funds 100 times a minute if you were quick enough. 1) All mutual fund trades settle at the end of the day; there are no mutual fund trades that settle mid-day. In other words, all purchases and sales are at the same price at the end of the day. 2) Invest more money outside the US than inside the US. Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 4, 2008 Author Share Posted July 4, 2008 1) All mutual fund trades settle at the end of the day; there are no mutual fund trades that settle mid-day. In other words, all purchases and sales are at the same price at the end of the day. 2) Invest more money outside the US than inside the US. That is what I thought about mutual funds. I believe I have a little more invested out than in. Do you think I should go with all of it out? How much Waly Stock do you think I should include? Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted July 4, 2008 Share Posted July 4, 2008 1) All mutual fund trades settle at the end of the day; there are no mutual fund trades that settle mid-day. In other words, all purchases and sales are at the same price at the end of the day. 2) Invest more money outside the US than inside the US. To add a third to already good info: 3.) Invest in huge multinational corporations based in the U.S. that do more than 60% of their business abroad. You get to benefit from the exchange rate....right now Europe is buying American goods at a 40% discount. Quote Link to comment Share on other sites More sharing options...
muck Posted July 4, 2008 Share Posted July 4, 2008 That is what I thought about mutual funds. I believe I have a little more invested out than in. Do you think I should go with all of it out? How much Waly Stock do you think I should include? Two questions: 1) You have the mutual funds above as options, plus WMT stock? In some ways, WMT is diverse enough with enough different revenue streams to be its own mutual fund option (sort of like BRK, and a few others, possibly GE)... 2) Does WMT match in stock or cash? ...also, I know very little about any of those mutual funds, except my grandparents used to own some of that American Fund (Europacific)...and it always seemed like a pretty good fund... ...and I think I've heard of the Davis fund as being a pretty good fund, too...the others don't really ring any sort of a bell... Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 4, 2008 Author Share Posted July 4, 2008 Two questions: 1) You have the mutual funds above as options, plus WMT stock? In some ways, WMT is diverse enough with enough different revenue streams to be its own mutual fund option (sort of like BRK, and a few others, possibly GE)... 2) Does WMT match in stock or cash? ...also, I know very little about any of those mutual funds, except my grandparents used to own some of that American Fund (Europacific)...and it always seemed like a pretty good fund... ...and I think I've heard of the Davis fund as being a pretty good fund, too...the others don't really ring any sort of a bell... the extremely odd thing about Wall's 401k is that they do not match. Every year they put in a certain amount relative to the employee's income so if you put in none or 10% you get the same match. Because I am invested fairly heavily in their stock in other ways It makes me nervous to put the 401k and profit sharing in as well. Am I being paranoid or is that a good idea? Quote Link to comment Share on other sites More sharing options...
Atlanta Cracker Posted July 4, 2008 Share Posted July 4, 2008 What other fund options do you have? ..And right now I personally favor US Growth stocks over international stocks. As the dollar finally starts to rise once the fed beings to raise rates you'll be taking a haircut on international fund returns even if they are good. Much like Shiz said.. 3.) Invest in huge multinational corporations based in the U.S. that do more than 60% of their business abroad. You get to benefit from the exchange rate....right now Europe is buying American goods at a 40% discount. One other note, you can take withdrawals from a 401k prior to age 59 1/2 without penalty if you set it up properly (IRS code section 72T). Doesn't mean you would but you could if a substantial chunk ended up in your retirement account. Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 4, 2008 Author Share Posted July 4, 2008 (edited) 2) Does WMT match in or cash? cash, I thought it was stock but I was wrong Edited July 4, 2008 by polksalet Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 4, 2008 Author Share Posted July 4, 2008 What other fund options do you have? ..And right now I personally favor US Growth stocks over international stocks. As the dollar finally starts to rise once the fed beings to raise rates you'll be taking a haircut on international fund returns even if they are good. Much like Shiz said.. One other note, you can take withdrawals from a 401k prior to age 59 1/2 without penalty if you set it up properly (IRS code section 72T). Doesn't mean you would but you could if a substantial chunk ended up in your retirement account. good info, I would LOVE to take everything out of profit sharing and 401k. I am pretty sure profit sharing is off limits until she quits but I am going to double check. Quote Link to comment Share on other sites More sharing options...
Atlanta Cracker Posted July 4, 2008 Share Posted July 4, 2008 good info, I would LOVE to take everything out of profit sharing and 401k. I am pretty sure profit sharing is off limits until she quits but I am going to double check. Some companies allow in-service withdrawals. Usually you have to be a certain age. 72t applies more to IRAs which would work if she left Wally world or retired or if they allowed in-service w/d. Quote Link to comment Share on other sites More sharing options...
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