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.