question about stock purchase

I'm invested in very risky funds and am currently being rewarded with > 15% gains. I realize I could lose money starting tomorrow though and am willing to accept that risk given my age and general love of gambling.

You should consult a financial advisor to see just how big of an impact investing even a small amount now will have come retirement.

 

You can lose it all in a stock purchase plan also. Your 401k money goes to the same place, the stock market, it's just put in to pre allocated plans. Either one can crash and lose it all depending on the market.

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$15.00 buys a partial share. The next payroll deduction of $15.00 which buys another partial share; now you own 1 full share and a partial share.

I made a killing on my 401K, by using diversification of my contributions. Remember, it's a global economy so think globally concerning investments. I'm not giving investment advice, just telling you not to be afraid of 401K. I put majority of my contribution in overseas Asian funds which is where I made the killing. When the stock market dips and people panic, I see that as an opportunity to buy stocks cheaper, so I increase my contribution, where most of the drivers I worked with cashed out and called me a fool. Also, some gung-ho company drivers put majority into company stock because the bosses tried to put pressue on us to buy company stock. I lied, and told the bosses, yes of course, but in reality, bought no company stock. The company went bankrupt & it didn't affect me at all. One 30 year driver lost his complete 401K because he had 100% investment in the company. Also, make sure the 401K is administered by an outside entity, not the company. You don't want the company you work for to also manage your 401K, because they have nothing to lose but you do.

 

Yes, the risky funds are the ones that make the money & that's the funds I used for years and years.

 

That is a chunk of change, I am wondering if you shouldn't sell some of it off? I bet when they were taking that $100.00 a week that you were hurting wondering if that was the right think to do. Good for your wife, and you too, I suggest you stay with her!

 

let's not forget lehman bros. mci worldcomm. and some other broker firms that are no more.

my stock was in circuit city. i worked there before the economy started flying in 1998. it was cheap when i started. got up to 20g at it's peak. disappeared when they closed the doors.

companies come and go all the time. only ones i've seen beat the odds is western union. and att. those two got started iwth the telegraph system back in the 1800's. i think those are the oldest companies. then you've got GE and IBM. other then those 4. i don't think there's any company that's been around longer then 75 years.

pam am used to be the worlds biggest airlines. they closed in 69.they lasted what, 40 years. there was a company that was the biggest retailer during the cowboy days. you went to your local thrift store in them days and ordered from the catalog. they lasted 150 years and closed at the end of the 20th century. they were headquarted in chicago.

how about the high flying railroads in the 1850's.

can youi imagine being one of a handful of companies that started in the 19th century. and show no siogns of disappearing any time soon in the 21st century. when MILLIONS of companies have come and gone. never making it past the 25 year mark.

lehman bros. was one of the first broker firms. that helped start the new york stock exchange. at the end of george washingtons presidency. according to google. 3 guys met under a apple tree. and started trading one company. one was named james p. morgan. one was something lehman. and the other was either morgan or stanley. to which both merged at some point and time.

been awhile since i looked it up on google. so the facts may be off a little. but that was basically how the stock market got it's start. 3 or maybe 4 guys under a tree trading one company.

 

there's usually some red tape involved. and a early penalty fee for withdrawal. plan on 35% for taxes. i think it is.

 

Some 401k plans have loan plans. Mine wont allow me to take a loan more than 50% of my current plan's value. repayment is broken down in monthly payments and cannot exceed 24 months. Very low interest, if at all.

Oh, if I quit or get fired, I retain the entire balance of my 401k, however the loan repayment has to made in full immediately or it will then be classified as a taxable disbursement and deducted from the account.

And yes, if you straight up withdraw money from the account, there will be taxes and penalties. The money is taken tax free from your salary and put into retirement. If your not going to wait and to use it for retirement, the government wants that tax and the tax on any interest, capital gains, and dividends. There are some exceptions with limits for home buying and education.

Roth IRA are a little different. The money has already been taxed. You can deposit up to $5,500 per year. After 5 years, you can take out any amount up to that $5,500 per year out as a disbursement as it has already been taxed. However any excess amount due to interest, gains and dividends can be taxed and penalized, again with some exceptions for home purchase or education.

 

maybe Im reading this wrong. Did your stock company go bankrupt? Or was it bought by another company.

If it was bought by another company your stock would have been purchased or swapped with the buying company's own stock, or some combination of both stock swap and cash.

Even if the company was bought by a private company or the company was taken private, the stock would have to be purchased back from the share holders.