After tax Roth in-plan conversion

I search Google using keywords "After tax Roth in-plan conversion", and then here is the article.

SECTION ONE: ROTH 401(k) AND AFTER-TAX CONTRIBUTIONS

1. What is a Roth 401(k)? A Roth 401(k) allows you to designate a percentage of your 401(k) retirement plan contributions as Roth contributions. Roth 401(k) contributions are considered optional and are made on an after-tax basis. Roth 401(k) accounts were designed to combine the benefits of saving in your tax-deferred workplace retirement plan with the advantage of avoiding taxes on your money when you withdraw it at retirement. Think of contributions to your VMware, Inc. 401(k) as having three separate “buckets”: pre-tax, Roth, and after-tax.

When you retire or leave VMware, Inc., earnings on your Roth contributions can be withdrawn tax free as long as it has been:

• Five tax years since your first Roth 401(k) contribution and
• You are at least 59½ years old.

In the event of death, beneficiaries may be able to receive distributions tax free if the deceased started making Roth contributions more than five tax years prior to the distribution. In the event of disability, your earnings can be withdrawn tax free if it has been five tax years from your first Roth 401(k) contribution.

Roth 401(k) contributions fall under the same IRS limits as pre-tax contributions to your Plan, so each dollar of a Roth contribution reduces the amount that can be contributed pre-tax (and vice versa).

• In 2019, the total combined IRS contribution limit for Roth 401(k) and/or traditional 401(k) pre-tax contributions is $19,000.
• If you are age 50 or older in the calendar year, you may make an additional catch-up contribution of $6,000 in 2019, bringing your total pre-tax and/or Roth 401(k) contribution to $25,000 for the year.

Fidelity: Average 401(k) nearly doubles since '09

Here is the article link, written in February 13, 2014.

What I learn through the article

Facts

"No one will complain when account balances go up," she says. But most of that increase — 78% — was due to last year's strong stock market. Just 22% was due to contributions. In normal years, those numbers are closer to 50-50, she says.

The article was written in 2014. 

Fact 1: 78% was due to 2013's strong stock market - balance go up 

Arguments:
"Individuals who cash out of their 401(k) plans are committing the equivalent of investment suicide,"

Thompson said the average cash-out is $16,000. For a 30-year-old, that could mean the loss of $461 in monthly retirement-income cash flow (assuming the person retires at 67 and lives into their 90s.

A few numbers to read:
Average cash-out $16,000
For a 30-year-old, $461 monthly retirement-income cash flow, retired at 67, live into their 90s
$16,000 dollars -> 37 years growth of those income.

Here is the copy of the article

Fidelity Investments' latest report on 401(k)s has both good news and bad news about our preparedness for retirement.

The good: The average 401(k) balance managed by Fidelity reached a record $89,300 in the fourth quarter of 2013. That's a 15.5% increase from a year ago and almost double the low of $46,200 set in 2009.

The number is higher for pre-retirees 55 and older: $165,200.

The bad: More than one-third (35%) of all 401(k) participants cashed out their accounts when they left their jobs in 2013. That number is even higher among younger participants ages 20 to 39.

SAVING FOR RETIREMENT: 5 reasons to up your 401(k) contributions

The increase in retirement account balances is "great news," says Jeanne Thompson, vice president at Fidelity Investments.

"No one will complain when account balances go up," she says. But most of that increase — 78% — was due to last year's strong stock market. Just 22% was due to contributions. In normal years, those numbers are closer to 50-50, she says.

She says Fidelity is very concerned about the number of people who cash out their 401(k)s when they change jobs.

"What's concerning there is many people, when they cash out, I don't think they fully realize the long-term impact," Thompson says. "In the short term, they will get cash, but in the long term, they are missing out on what that money could grow to."

"Individuals who cash out of their 401(k) plans are committing the equivalent of investment suicide," says W. Kirk Taylor, chief investment strategist for 1st Portfolio Wealth Advisors in Vienna, Va. "The combination of penalties, taxes and lost opportunity costs generally have disastrous implications to an investor's long-term retirement plan."

Thompson said the average cash-out is $16,000. For a 30-year-old, that could mean the loss of $461 in monthly retirement-income cash flow (assuming the person retires at 67 and lives into their 90s.

"What you're really losing is a lot more than $16,000, long-term," Thompson says. "When you are younger, it's hard to conceive of that. Five hundred dollars a month can pay for a lot of things."

RETIREMENT: Planning for your future

The other shock for people withdrawing that $16,000 instead of moving it to another employer or private tax-advantaged account: After $3,200 in federal and state taxes and another $1,600 in early-withdrawal penalties, it leaves only about $11,200.

"For truly cash-strapped investors, a better option may be to rollover their 401(k) balance to their new employers 401(k) Plan (if allowed) and take a loan against the rolled over balance," says Taylor. "There are pros and cons to this approach, so investors should weigh them accordingly and consult with a financial professional."

Fidelity is the nation's largest 401(k) provider in the nation. The latest data are based on a review of some 12 million accounts, Thompson says.

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.

FIDELITY® Q1 2019 RETIREMENT ANALYSIS: ACCOUNT BALANCES REBOUND FROM DIP IN Q4, WHILE SAVINGS RATES HIT RECORD LEVELS

Here is the link.

Staying the Course Results in Significant Increases in Retirement Balances on 10-Year Anniversary of Stock Market Low1

BOSTON, May 9, 2019 -- Fidelity Investments®, a broadly diversified financial services company with more than $7.4 trillion in client assets, today released its quarterly analysis of retirement savings trends, including account balances, contributions and savings behaviors, across more than 30 million retirement accounts. Average account balances rebounded in the first quarter after a slight dip at the end of 2018, buoyed by positive stock market performance as well as record contribution levels to retirement accounts.

10-Year Analysis Shows Significant Growth in 401(k) Accounts, More Balanced Allocation

In light of the 10-year anniversary of the stock market reaching all-time lows during the financial downturn, Fidelity examined the accounts of 1.64 million individuals who have had the same 401(k) account since Q1 2009, and compared their current 401(k) account balance with their average balance 10 years ago. The following chart outlines the overall increase in balances for this group, along with specific analysis for millennials, Gen Xers and boomers5 within the overall population of 10-year continuous savers:

Fidelity’s 10-year analysis also highlighted how the average asset allocation within 401(k) accounts has gradually shifted to become more diversified, which can be partially attributed to the increasing use of target date funds among 401(k) savers. As of Q1 2019, 52% of individuals had all of their 401(k) savings in a target date fund, compared with just 16% in Q1 2009. In addition, a much lower percentage of individuals had all of their 401(k) savings in stocks -- only 7% of individuals had an all-stock 401(k), compared with 15% who had an all-stock 401(k) allocation in Q1 2009. For more information on Fidelity’s Q1 2019 analysis, please click here to access Fidelity’s “Building Futures” overview, which provides additional details and insight on retirement trends and data.

401(k) balances skyrocket in the decade since the market bottom

Here is the article.

What I learn through the article reading:

The S&P 500 is up roughly 320% over the same time frame, or 426% when factoring in dividends.

“Keep your behavior in check, keep your emotions in check, keep investing,” said O’Brien. “It sounds silly, but the best thing for investors who save every payday is for the market to be down every payday so they’re purchasing stocks and bonds on sale.

“That won’t always happen but it’s the ideal situation.”

Here are copy of the article:

Key points:

1. The average 401(k) balance rose by 466% since the market bottom in March 2009.
2. For millennials, the average account rose by nearly 1,800% to $129,800.
3. To make the most of your 401(k), advisors say put enough in to meet your company match and keep investing.

Turns out staying the course pays off.

According to a report released by Fidelity Investments, the average 401(k) retirement plan balance rose by 466% to $297,700, in the 10 years since the March 2009 market bottom.

Millennials, who had average savings of $7,000 in the first quarter of 2009, saw their average 401(k) balance grow to just under $130,000, a gain of 1,762%.

The numbers are surprising, said Michael Gibney, a certified financial planner with Modera Wealth Management in Westwood, New Jersey.

“Once you set it and forget it, people are amazed by how much their balance will grow.”

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Fidelity based its findings on 1.64 million accounts where workers actively contributed and remained at the same company over the decade. The total amount includes both participant and employer contributions.

The eye-popping gains were certainly helped along by the overall market performance. The S&P 500 is up roughly 320% over the same time frame, or 426% when factoring in dividends.

“While the growth of account balances is due to a combination of market performance and savings, both are critical to reaching long term retirement savings goals,” Kevin Barry, president of Workplace Investing, said in the report.

Seeing a big number in your account may be deceiving, warned EVO Advisers’ David O’Brien, a financial advisor who helps smaller companies manage and develop 401(k) plans.

“It needs to have context,” said O’Brien. “Answering that big question of, ‘Am I contributing enough?,’ and, for millennials, ‘Am I contributing it in the right tax bucket?’”

Because contributions are made pre-tax, 401(k) plans offer the upfront benefit of lowering the amount of income subject to taxes.

But eventually you have to pay the piper (in this case, the IRS) and money taken out in retirement is taxed at your ordinary income rate, which for the top bracket is currently 37%.

Blair duQuesnay of Ritholtz Wealth Management in New York suggests splitting retirement savings equally into three buckets. In addition to a 401(k), duQuesnay has clients use a Roth individual retirement account — which is funded by post-tax dollars, making withdrawals in retirement tax-free — as well as a brokerage account. “You’ll have flexibility to manipulate your taxable income in any given year during retirement,” she said.

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.

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.

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.

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. 

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。

So you want to be a 401(k) millionaire? Here's how to do it, according to Fidelity

August 30, 2018


Here is the link.

Values are rising
Retirement funds (year-over-year)

• Average 401(k): $104,000 (up 6%)
• Average IRA: $106,900 (up 9%)

What's in your 401(K)? Vanguard, average retirement account
Ages 65+

• Average: $209,984
• Median: $64,811

1:57
157,000 people are super saver, based on Fidelity, with over a  million dollar

Tip #1
Be aggressive

• Invest heavily in equities
• Be heavier equities when younger, roll out over time
• Gauge age and risk tolerance

Tip #2  (3:22/ 6:04)
Know your end goal

• Always take a longer-term view
• Have an eye on growth
• Don't react to market swings

Tip #3

Examine allocations

• At minimum once a year
• Quarterly when near retirement
• Re-examine when life changes take place

Jeanne Thompson - Fidelity

Target fund - when you are 50, still 10 year to retire, 85% equities, 15% bond

Marathon, a sprint,

60% market,

Allocation once a year. Asset class

Less than 1% - move to cash, but most of them stay on the course

Those over 10 years,
$73,000 -> $200,000 approach $300,000

Do not react too quickly.

Actionable Items

I like to evaluate myself based on my USA 401 K and IRA, my return from 2009 to 2020 is less than 2% annual return. All of those mistakes can be traced back in 2001, I sold VIGRX in 2001 with 30% loss; I did not learn that I have to read at least one investment book related to growth fund, and understand the concepts like index fund return. Later in 2009, since my Canada immigration application was denied in December 2008, I sold all equities in my 401 K and also IRA. I made mistake to move to IRA CD with Amtrust bank.

I got depressed in 2009 since I learned that I may be worth nothing from 1996 to 2009, the home  I purchased does not worth too much, I had 10 year old paid SUV but gas price was $5.00/ gallon, and I had less than $28,000 dollar US retirement fund, and the bank gave me $65,000 home equity line starting from 2006.

I have to examine how to stay healthy, wealthy; Never purchase any brand new car, only gas-efficient car instead.

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: 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.

Record number of 401(K) millionaires

Here is the link.

10 year bull market

RPT: There are 50,000 more people from a year earlier with $1M in their 401(K).

a year before 118,000, now it is 168,000

Fidelity manages 16.1 million people's 401(k)s


32,000, 5% deposit into 401 K, 13% return every year.

Mutual fund, target fund.

Darbar -

Professional help - pay them by hours

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.



 

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.

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

Case study: My par tech 401 K positions with action plan

April 30, 2019

Introduction

It is my personal finance research. I just did asset allocation on April 29, 2019. I like to document my transactions into my github folder. I have to start to learn how to manage my 401 K account much better.

My reports

I spent time and generated all reports possible inside Charles Schwab. Since I know that good personal finance habit is the beginning of building wealth and grow rich. I have to take care my 401 K, be humble to learn, allow myself to make mistake, and continue to grow with USA economy together.

Actionable plan

I put 30% on large company, and also 30% on bond; if the market is too high to crash, then I will withdraw from bond and put into big company.

I like to put more growth fund and focus on 10 - 13 year long term, I am still waiting for downtown, expect the cycle of market - bear market, and then put more fund into growth fund.

From 2007 to 2019 my Par tech 401 K - Five whys?

Dec. 23, 2019

Introduction

It is my personal finance research. I like to push myself to analyze why I did not have any interest with my 401 K account from January 2007 to May 2019. I like to go through all possible reasons, and write a report to show status, my mindset, circle of friends, and all other things.

Five whys?

I like to ask six whys? Why I do not spend time to work on my own 401 K Par tech? What should I learn how to allocate my time to work on.