401K

What is the right time to sell your old fund and change to a new fund?

Bruce and Mark work for a mid-sized technology company and they both have been contributing to 401k for years together . They learn at the year-end benefits meeting that a low fee Index fund will be added to their 401k plan from beginning of the next year. Bruce says “I am going to transfer allContinue reading “What is the right time to sell your old fund and change to a new fund?”

Target Funds or Index Funds?

Many people invest their 401K contributions in Target Funds based on their planned retirement year. Target Funds are composed of different financial instruments like stocks, bonds, commodities. They claim to have a magic formula which calculates what percentage of your contribution should be allocated to each asset. By this approach they mitigate risk against anyContinue reading “Target Funds or Index Funds?”

Manhattan was sold for $24 dollars in trinkets…

Peter Minuit worked for Dutch North American Colony in the early part of 1600s. Why are we talking about him? You say. He made the greatest trade ever! If it is to be believed he purchased Manhattan island for the Dutch from Lenape Native Americans for $24 in trinkets. What is Manhattan worth today? ItContinue reading “Manhattan was sold for $24 dollars in trinkets…”

Moving your 401K balance to ROLLOVER IRA account when you leave a job.

You have your 401K account with your current employer. You have been contributing to it and your employer has been matching your contribution. Now over a few years your 401K has a considerable amount. You start thinking about leaving your current job and want to have a clear plan for your money in your 401KContinue reading “Moving your 401K balance to ROLLOVER IRA account when you leave a job.”

Reason for not participating in 401K plan

I never participated in 401K account for the first 10 years of my career. My reason was I would lose money since I might buy at a market high and sell at market low. This is a common fear in most of us. Not fully understanding a 401K plan and its purpose was the reasonContinue reading “Reason for not participating in 401K plan”

Picking funds to invest in 401K account

I decided to invest in my employer administered 401K plan and now I need to pick funds that are available with them. For me it was easy, I just picked 3 funds where I would invest one third of my contribution in to each fund from every paycheck. One fund would be high risk-high reward,Continue reading “Picking funds to invest in 401K account”