Case study: Par 401 K 2010 - 2019 TRBCX return

January 4, 2020

Introduction

It is my project management skills. I have to learn how to cover most important projects in my life, like management of my 401 K with Par tech inc from 2007. I did not spend time at all from 2009 to 2019 January, and I like to write a short case study about TRBCX fund in my Par tech 401K.

Case study

I invested $8000 US dollars in 2007 in my 401 K. And I like to review TRBCX fund in my Par tech 401 K.

Here is TRBCX fund's page.
I worked on my 401 K par tech in May 2019. I set up portfolio with 30% bonds, 70% equity. I like to work on calculation of return if I choose put all $6,000 dollars into TRBCX fund.

Here is Bankrate.com calcultor I like to use. What if I put all those $8000 dollars into TRBCX from 2017 to 2019.

From the above tables, using 15-year trailing return 11.04%, and then fill the form on bankrate.com webpage, the following is the copy of bankrate.com screen. The form can be accessed using the link here.

Actionable Items

In reality, my 401 K par tech has only less than $7000 US dollar balance. I did write blogs to show the summary. Here is one of them.

I need to work on a few things in order for me to understand the above optimal solution.

1. Be confident on self-learning on investment;
2. Work on asset mix, asset allocation. Best way to learn is to read a book, such as Boglehead investment. I should slow down everything, church, tennis, sibling chatting, shopping. I have to learn basics as early as possible;
3. Keep reading articles, learn every day on how to invest;
4. Learn to find tools to help me manage portfolio 10 year return;
5. Understand my goal, I do not need to use those 401 K money from 2006 to 2019. Why I do not take risk and let fund grow by allocating equities into the fund.
6. I have to keep reading and learning. I should keep a journal of my study.
7. Build a community around myself, how to invest, talk about investment, and also try to be a millionaire, instead of worrying about immigration, work permit, full time, or other things.
8. If I have full time job, then I will keep making money; if I do not have full time job, then I should invest those time to learn investment, personal finance. So much to learn, so little time to work on my goal.
9. Learn how to manage myself, stay confident.
10. Take some risk in investment.

So the difference is more than $21,000 US dollars. In other words, if I control my emotions, keep the portfolio in 2009, then I will have return up to $21,000 US dollars. In 2009, I took $30,000 from my Amtrust home equity line from 2008 January to 2009. I did review and then found records I transferred $30,000 US dollars to my Chase bank checking account.

Life is such challenge to live, at that time, I was so afraid that Amtrust bank will take back home equity line. I also kept over $15,000 IRA into IRA CD account.

To be a self-learner, it all starts from reading an investment book; My FAU classmate told me to invest on index fund. At that time, I was so busy with so many things. I do not have to spend money to take a course, I just read the book, write down what I learn, and continue.

Case study: My 401 K management lesson No. 1

April 25, 2019

Introduction

It is my personal finance research. I like to learn and look into my 401 K management lesson on par tech 401 K fund.

Case study

I did study my par tech 401 K. I invested $8,000 dollars into my 401 K from 2006 to 2007.

I like to put some facts in the following:
1. mutual funds holding from 2006 to 2008.
2. 2008 loss screenshot
3. 2009 to 2019 money market fund

I like to analyze how many mistakes I made as an investor, what common mistakes I made as a naive investor from 2007 to 2019. What can I do in order to improve myself as a problem solver? What was my thinking process? How many big mistakes I made through those 12 years.

1. Buy high sell low in 2008.
2. I should get back to those funds when market comes back. I should follow S & P index.
3. I should not put money market fund in 2009.
4. I should spend time to rebalance, and at least learn how many funds available.
5. I should spend time to chat and look into how to grow those investment. I can grow those $8,000 dollars into $30,000 dollars using Par tech 401 K plan by choosing TRBCX or FXAIX from 2010.

Ideas to work on 

If I learn how to invest in the equity market, those fund from 2010 to 2019 can be tripled in TRBCX fund.

Laidoff in 2007 turns into such great experience for me in my life. If I can handle the 401 K properly and I stayed in the course on equity funds in 2008, then I will let those fund grow to $20,000 dollars.

I should spend at least one hour every week to learn Schwab Charles 401 K website, and also learn all investment funds available starting from 2008.

I should learn personal finance since I have 401 K fund with value over $6,000 starting from 2007.

Good finance habits

I should spend time to learn my 401 K fund by studying the website, chat with the representative online, and also study the learning center from the website.

I should study all available funds and then try out different funds from 2007 to 2019. I am so ashamed that I do not have any transaction from 2009 to 2019.

Ten years blank history as an investor. I am so ashamed that I do not learn and also practice as an investor.

Follow up 

Dec 20, 2019

It is hard to read this case study. I just could not believe that life is so tough for me to accept myself as a learner. It is tough road for me to be a Canadian citizen.

One minute review: my USA retirement fund last 20 years

Nov. 9, 2019

Introduction

It is a good idea to put together some facts called one minute review. 

One minute review 

One minute to review the following facts:

1999 to 2001, $11,530 dollar into my 401 K from 1999 to 2001
2004,  $3000 IRA
2006,  $8000 401 K Siva, Par Tech Inc

Nov. 9, 2019
Key largo portfolio  $20,321.70
Par 401 K $6590

------------------------------
Profit: 
 $7381

1999 Dec  - 2019 May profit is $5479 
2019 May - 2019 Nov profit is $1902

More detail

I did invest $11,530 dollar into my 401 K from 1999 to 2001, and then 2004 $3000 IRA, and then from 2006 to 2007, I invested $8000 dollars my 401 K.

My actual asset for those fund are $26811.70 dollars, key largo portfolio has balance $20,321.70, par 401 K has balance of $6590.

Comparison

I like to profit at least 10 times more in 20 years, but actually I only have profit $7381 with 20 years time range, average for each year is $300 dollar/ year, $369.05/ month, 1.84%.

1999 Dec  - 2019 May profit is $5479 - Here are blog to document my IRA CD with the bank over 10 years.
2019 May - 2019 Nov profit is $1902

25% profit last 20 years is made in last six months since I learn to put those funds back in index fund. I studied Canadian retirement guide. Here is the link.

25% of profit $7381 is made by myself last six month starting from May 2019. 

Actionable Items

I just review the content in my blog, and then put together the above one minute fact review. 

Case study: My 401 K and IRA performance vs Vanguard total market index VTI ETF

April 28, 2019

Introduction

It is my personal finance research. I like to do a case study of my 401 K compared to VTI ETF performance.

Case study

Let me put all my deposit of 401 K into github for me to look up first.

I just could not believe that I have not done any research on 401 K portfolio research starting from 2002 to 2019. It is over two decades. I just could not believe that I have such difficulty to learn new thing on investment.

My 401 K and IRA managed by myself

Here are blogs by searching IRA CD on my blog. I put my IRA CD staying with New York community bank from 2006 to 2019, here is the blog.

1999 Atlantic Entertainment   $1880
2000 Atlantic Entertainment   $3610
2000 Trendium                         $650
2001 Trendium                       $5490
2004 IRA deposit                   $3000
2006-2007 Siva, par siva       $8000

I experienced two recession, 2002 and 2008. And I decided to pull all funds out of stock market in 2009. I just could not believe that my decision and I could not explain myself the behavior.

Facts:

1. I do not actively learn how to invest. I do not study my 401 K Par technology Charles Schwab account, I do not even know what funds are available for 401 K investor after 2009.

2. I do not pay attention to stock market, and I do not do any study on my 401 K fund performance at all from 2010 to 2019.

3. I do not question myself the way I manage the asset I have.

And VTI ETF performance is unbelievable.

Christmas day - new tradition (series 3 of 10)

Dec. 25, 2019

Introduction

It is my new tradition in Christmas day. I like to review my investment account, and then think about what I should do next at the end of 2019. I like to work on my Par Tech 401 K plan, I had the account starting from 2007, and my original investment is $8000 US dollars. Blogs are found using keyword 401 K, link is here. I like to spend 30 minutes to review my portfolio.

Par 401 K 

I like to present the return, and also spend time to explore Charles Schwab all funds performances in my retirement plan.

What I like to do is to review all available funds in the 401 K plan, and I like to check the return in 2019.

Here is the statement of Sept 30, 2019.

Asset allocation

31% bonds, 28% large capital, 21% small capital, international 12%, special 8%

Personal performance

Here is performance provided by Charles Schwab.

Interest paid $62.25, dividends/ capital gains $185.32, market change is $354.08. The return is close to $600 US dollars.

More reports 

The website is designed by biggest brokerage firm in USA. So it is the first time I will review the features in this website.

Net positions
Cumulative returns
PRR Barchart
PRR Table 1
PRR Table II
Investment Summary
Balance History
Allocation history

PRR Barchart
There are four options, standard, yearly, quarterly, monthly.

Q1 2019   01/01/2019-03/32/2019 PRR 1.17%
Q2 2019   04/01/2019-06/30/2019 PRR 1.47%
Q3 2019   07/01/2019-09/30/2019 PRR 1.13%

Jan          0.56%
Feb         0.15%
March    0.45%
April      0.42%
May      -3.46%
June       4.66%
July        0.74%
August  -0.68%
Sep         1.08%
Oct         1.69%
Nov        1.94%

PRR table 

PRR table II

Here is the table. 

Allocation history 

April 27, 2019

May 1, 2019

It is such great feature to look up daily balance. 

Allocation by asset class

Activity details by position

Actionable Items

I put together a complicated portfolio in May 2019. My return is 9.70%.

One of ideas is to push myself to take more risk, but then I will have to catch up more investment when bear market hits in 2020.

Here are highlights:
1. Make sure that I download all statements in 2019. Check in my Github personal finance folder.
2. I have to read each statement, and ask at least three questions in each statement; What I do not know, what I should look into.
3. Understand my asset allocation right now, it is 30% bond, 70% equity.
4. Wait until Dec. 30, 2019 for the last statement in 2019.

There is no fee to rebalance. The Charles Schwab is the biggest brokerage firm in USA, and the website has very good performance analysis report.

As a project manager of my 401 K portfolio, I have to spend at least one hour to review the website, and then I should find out some problems in my portfolio, and then think about how to make improvement.

Here is the blog to show that 10 years from 2009 to 2019 capital preservation. I just could not believe that I do not think about or talk about my retirement fund 401 K 10 years. Living as a single person, I have so much challenge to manage my own finance. Ignorance and lack of self-learning is such a big issue over my adult life from 2001 to 2019.

Case study: Par 401 K 2019 Dec 25 review - capital preservation

Dec. 26, 2019

Introduction

It is painful to review 10 years experience I have with my Par 401 K portfolio. I am a hard working person, but I am not so good to be a self-learner. I did not spend time to study money, personal finance from 2007, even though I have Par 401 K starting from 2007. I chose to sell all my funds in 2009, and then leave the fund as is last 10 years.

Capital preservation

I like to show the report in this blog, also I like to confess that it is so humble to show my naive, lack of finance literacy. I should review and examine my personal finance every Christmas day. It is best time for me to do that, since I am a single person, and I do not have to have a party but I have time to review my finance.

Tell my story

I invested my 401 K $8000 US dollars in 2006 to 2007, and employer matched $800 US dollars. I sold in panic when everything went down. And I did not review my finance decision at all after 2008.

I do not spend time to read investment books, I do not spend time to study market at all. From 2009 to 2019, S & P 500 index goes up more than 300%.

Knowledge is power. It is so important for me to find time to work on learning personal finance. I should leave time for me to read books, and also learn importance to make money through investment.

Par 401 K Feb 27 2020

Introduction

It is the third big day with loss more than 2% on SPX. I like to document my Par 401 K loss on Feb. 27, 2020.

Par 401 K

Charles Schwab - Par 401 K 14 year history from 2007 to 2020

May 10, 2020

Introduction

It is tough road to be an investor last 12 months. I like to showcase my par 401 K and see last 12 months performance.

Par 401 K 10 year history

My original investment is $8000 US dollar started from 2007. Here is the blog.

Case study: Par 401 K 2019 Dec 25 review - return table

Dec. 25, 2019

Introduction

It is the first time I write a blog for my Par 401 K holding more than 12 years called return table. I am a software programmer full time last 10 years, but I do not have interest to figure out how Charles Schwab designs the website to provide feature. I am just the lucky one to learn and figure out tonight first time. I like to share my experience.

Par 401 K 2019 

Here is the chart I like to learn and ask a few questions on the performance. I like to be curious and learn more about investment. I have to push myself to learn, not just remember a number, 9% return, and return dollar amount is around 600 US dollars in 2019.

My retirement life will be super challenging

January 15, 2020

Introduction

It is my personal finance research. I like to write a blog called "My retirement life will be super challenging".

My 401 K and IRA / Risk management

I just had 53 year old birthday in Oct. 2019. I also learned that I had economics behavior problems. I did not spend time to learn how to invest from 1996 to 2018 December, so I left my USA 401 K and IRA accounts no change from 2010 April to 2019 April, capital preservation for Par tech 401 K and IRA CD in Amtrust bank. I will definitely take the consequence, and I will definitely have very challenging life after I retire in Canada.

I was smart to invest my own 401 K for three jobs as a software engineer from 1999 to 2001, Online gaming system, Trendium inc, and then from 2006 to 2007 Par tech inc. I invested IRA one year in 2005 as well. So I invested over $22,000 US dollars.

If I did not close all my funds and then put into IRA CD from 2006 to 2009, my retirement fund will grow with US S & P 500 Index, those over 10 years will create more than three times more market change, over $66,000 US dollars. I just could not believe that my huge mistake and I have common mistakes called recency bias, and paralysis by analysis.

But I got lost in my busy life to learn how to handle my money properly. I did not spend time to learn until I felt depressed in November 2018. Since I could not solve my own housing problem in Canada, I only could save a down payment less than 20% after I worked 10 years full time.

I have to figure out how to catch up, and push myself to learn as a self-learner.

Actionable Item

I learned from MIT open course Andrew Lo, finance introduction, time and risk management are two things to make finance really hard. I messed up two things, one is 20 years time, one is risk management from 1999 to 2019. What should I do next?

I have $9000 Canadian dollar RRSP, and less than $30,000 US dollar IRA and 401 K. I had 53 years old birthday in Oct. 2019. How can I make a living to use those small amount retirement fund?

Make sure that I will work on something meaningful, help myself and also share my struggle and hard work journey as well. I may need to work on research about social service, social housing, and gain more skills like living in rural area and small cities.

Case study: Work on US millionaire dream

Oct. 1, 2019

Introduction

It is my personal finance study. I will have birthday this month, I will celebrate 53 years old birthday. I am working on the millionaire study in USA. How can I be a USA millionaire?

Case study

I went to USA in 1996. I lived in USA from 1996 to 2010. This year my rental property value went up, the neighbor sold a few months ago $135,000 US dollars. I went back to set up my Par 401 K and Key Largo IRA, and also I plan to find some very good investment stock to purchase when recession comes.

How can I be a USA millionaire? One idea is to get a job from Facebook in MPK park. I went to Facebook onsite in August 2019, but I could not get an offer.

I know that wealth is like a tree, start from a seed. Right now, I have to figure out how many double games I should play in order to reach million dollars. Only three double away.

Here is the math:
$135,000 real estate
    35,000 IRA, 401 K and cash
-----------------
$170,000 US dollars
$170,000 -> one double -> $340,000 -> second double $680,000 -> third double $1,308,000

It is impossible that my condo will double the value. The property tax in Florida is 2%, and the maintenance fee is $250/ monthly.

Actionable Items

I never thought about from 2001 to 2010 that I may become a millionaire in USA asset. I went through difficult time in 2008, lived on home equity line, and then filed appeal leave for Canada skilled immigration case.

But if I have confidence no matter poor or rich, with/ without a job, I always work on research how to invest, work on personal finance research, actually in 2009, it is best time to invest my IRA and 401 K into US index fund.

I had net income over $110,000 US dollar from 1999 to 2001, but I did not learn enough about investment. Based on my research, ROSS store stock was around $2 dollars in 1999, but in 2019 the stock is around $100 dollars. If I learn how to analyze the business, then I will definitely will save all money on clothes, invest on ROSS stock.

Here is the blog I documented my 401 K contribution from 1999.



 

Wechat post about my bias, holding grudge

April 19, 2019

Introduction

I have not posted anything on wechat over six months. I decided to post one related to my par tech 401 K review.

Wechat post

Here is the image of sharing.

Do not have bias on stock market

Here is the content I wrote in Chinese.

我在2007美国短暂工作一年， 401 K $8000 美元， 公司matches 800 美元。2008年掉了$3000 美元。卖了放在money market, 再也没有动过。12年过去了， 我也老了。重新看帐号， 联系401 K Charles Schwab, 重新调整不要钱， 随意调整。美国401 K 上市公司服务真好。比爹妈还要好。只有二十基金， TBRCX 2010 年到2019年翻了五倍。可惜我这二天才发现。感叹美国股的强大， 自己无知和懒惰。每个季度需要用爱心去看和分析自己401 K 帐号。我十二年偏见， 被解雇的心理创伤。年龄超过五十岁了， 慢慢学会珍惜自己拥有的。能说会读英文， 但是对股市的偏见和美国经济的失望让我体会到真实的人生。做好每一件平凡的事情， 检查每一个帐号。善待每一个人， 善待每一个工作和自己每一份金钱。一颗大树从一颗种子开始。我从此做一个节俭的人。仔细数算自己拥有， 消除偏见。

Research talk: 20 years $200,000 USA IRA investment goal

Nov. 9, 2019

Introduction

It is my personal finance research. I like to work on the short research if I can make it happen from 1999 to 2019 to grow $200,000 USA IRA investment goal.

Case study

I did invest $11,530 dollar into my 401 K from 1999 to 2001, and then 2004 $3000 IRA, and then from 2006 to 2007, I invested $8000 dollars my 401 K.

Can I grow those fund from 1999 to 2019, and the goal is $200,000 dollars? My actual asset for those fund are $26811.70 dollars, key largo portfolio has balance $20,321.70, par 401 K has balance of $6590.

I was a young Chinese single lady from 1999 to 2019. I worked on a few projects and failed a few of them, including computer science Ph.D. degree, US green card application, and a few other projects.

In order to grow those money, there are a few ideas to make it happen.

Idea 1: I can purchase $10,000 ROSS stock, in 2019, the stock value 40 times more.
The problem I had is that I like to bargain hunt, but I did not know how ROSS business works. I never pay attention to the stock. I bought over 10 technology stock, expensive ones instead. I drove Ford Explorer brand new purchased in 1999, I purchased Ford stock, I purchased Bank Atlantic Entertainment stock account the company I worked for.

Idea 2: I can learn how to invest basics, so I can try to double those money once at least in 20 years span. So I can learn how to make another one.

Idea 3: I have to build confidence on one area of my life. My home purchase value went up and down.

Comparison

I like to profit at least 10 times more in 20 years, but actually I only have profit $7381 with 20 years time range, average for each year is $300 dollar/ year, $369.05/ month, 1.84%.

1999 Dec  - 2019 May profit is $5479 - Here are blog to document my IRA CD with the bank over 10 years.
2019 May - 2019 Nov profit is $1902

25% profit last 20 years is made in last six months since I learn to put those funds back in index fund. I studied Canadian retirement guide. Here is the link.

I like to show those facts, and I do have strong mathematics background, 10 years experience working in a manufacture company in Canada, and also experience in NSF, Par Tech, Siva, Motorola, Trendium, Online Gaming, Daleen.

How hard it is for me to learn personal finance, motivation to become a rich person, a millionaire?

Case study: Par 401 K positions - June 2 2019

June 2, 2019

Introduction

It is my personal finance research. I like to learn when to rebalance my portfolio. I have Par 401 K and I did build a portfolio less than two months ago, now the balance is $200 lower. Should I rebalance the portfolio?

Case study

I have to think about if I should rebalance my portfolio on my Par 401K.

June 2, 2019

I look up my folder, and here is the portfolio I setup in April 30, 2019, just one month ago.

Here are the difference based on asset type. I need to think about when to rebalance the portfolio. It is free to rebalance.

Here are a few blogs related to my Par 401K starting from 2007.

Par 401 K - remember Feb 24 2020

Feb. 24, 2020

Introduction

It is the challenge job for me to learn how to invest my Par 401 K. I like to remember my short two year work experience to work for Siva and Par tech. I like to grow my finance IQ with my account.

Feb. 24, 2020

I just spent a few minutes to look into Charles Schwab's web page. I found this page by choosing a few configuration options.

My biggest financial mistake No 1 - $200,000 401 K and IRA gain

Oct. 26, 2019

Introduction

It is my personal finance research. After almost one year financial research, I found out that my biggest financial mistake is how to handle my 401 K and IRA from 1999 to 2019. Twenty years can generate over $200,000 dollars again based on my investment on 401 K from 1999 to 2001, 2004 and 2006 to 2007.

My 401 K contribution

Here is the blog I documented my contributions. I also list in the following:


1999 Atlantic Entertainment   $1880
2000 Atlantic Entertainment   $3610
2000 Trendium                         $650
2001 Trendium                       $5490
2004 IRA deposit                   $3000
2006-2007 Siva, par siva       $8000

Compared to index growth from 1999 to 2019, I do believe that 2010 $1000 on S & P index fund, in 2019 those $1000 dollars investment will be value of $3000 dollars.

I have 20 years to grow those $10,500 dollars from 1999 to 2001. I have 15 years to grow those $3000 dollars starting from 2004, and then I have 12 years to grow those $8000 dollars from 2007.

My preparation for market testing low - SPX 1200 - 1500

April 20, 2020

Introduction

It is time for me to prepare a business plan called market testing low - SPX 1200 - 1500. I like to sell my position in my Par 401 K and VOO $1600 in Key largo, so that I can hold on sideline to wait market drop 10% or 20% and then put back into SPX, and then 50% off SPX 1200 - 1500. I really like to learn more before I can work on any trade.

My business plan

It will take me 300 to 400 hours to be a good learner about common mistakes for day trade, short term trading and also long term investor. I have to prepare myself to learn first before I can learn how to trade and have good psychology as an investor.

I like to learn more about business, stock market and investor basics. It makes my life more challenge and there are business opportunity for me to make thousands as well in short term as well.


TFSA VFV.TO   avg 71.368, 83 share, market value $5,880.55, gain (-58.93)

Key largo Ameritrade.com
  VOO 6 shares, avg price $259.10, $1554.60, gains (-51.59)

Par 401 K
  $6,000 US dollars <- Need to prepare for SPX 1200 - 1500
  Fidelty 500 Index   $729.41
  T. Rowe Price,        $537.59
  Pioneer equity income Y. $454.05

30% bond, 70% equity - think about rebalance, SPX 2200, sell 15% bond, purchase equity.

Par 401 K - March 12 2020

March 13, 2020

I like to document my Par 401 K as well.

Par 401 K - February 25 2020

Feb. 25, 2020

Introduction

I like to record my Par 401 K balance update. I like to spend some time to learn how to work on my asset allocation.

Feb 25 2020

It is the second day sell-off. I like to study the loss and see what I should do.

Feb. 24, 2020

Feb. 25, 2020

Case study: Par 401 K 2019 Dec 25 review - Asset class bond

Dec. 26, 2019

Introduction

I like to review bond performance in my par 401 K portfolio.

Performance