Case study: Par tech 401K plan performance review

April 15, 2019

Introduction

It is my personal finance research. Today I spent one hour to go over the performance of my 401 K with par tech with Charles Schwab, and also this is the first time since 2007 I chatted with a representative online how to rebalance the portfolio. I like to do a case study on my performance.

Case study

It is the first time in my life I realize that that is my job to keep those 401K money grow. I did not show any curiosity to learn how to grow the money. I did not have annual statement, I did not chat with representative. I was too busy with my life.

One thing I chatted with my sister last August when she visited me, she said that if you like to make more money, you should consider to sell something on wechat or on internet. I was so ashamed about my financial situation, so I chose to start personal finance study starting from Nov. 2018.

After six month study, over 500 hours watching videos from youtube.com, morningstar.com, I spent hundred hours with personal finance director Christine and her teaching. I finally figured out that it is not difficult for me to learn and come out a plan, double the money based on Future value calculation and the rule of 72. Based on stock market bull market last 10 years run, it should be taken less than 10 years to double the money.

I only could find my 401K fund performance from 2010 to 2019. The following is my performance.

I have to push myself hard to figure out how to cover last 12 years loss. Ideally I should be able to double the money from 2007 to 2019. I have 12 years for me to learn how to double money. If I start to learn personal finance, economics, morningstar videos on youtube.com from 2010, I spend over 1000 hours to learn, I definitely should come out a few ideas how to do it.

As a matter of fact, I do not learn the importance of personal finance. Last 20 years I did not find any investment opportunity to fit for me. I just could not believe that I was so lazy to grow rich and build wealth. I enjoy so much activity, indulge in consumption. I just could not believe how superficial I am. I keep buying clothes, I purchase 10 jeans one time, 10 jackets one time. I just could not believe what I have in my mind from 2010 to 2015.

Here is my account balance in April 2019. I finally know that I have to give myself time to learn stock market, economy first. And then I will figure out ways how to make sound investment strategies.

Comparison with TRBCX fund

I like to compare the performance with existing funds available in my Par Tech 401K plan. This is the first time from 2010 to 2019 I checked how many funds available for the purchase. I need to learn growth equity and long term performance of strong growth of US economy.

TRBCX