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.

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.

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.

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: 2010 first quarter Par tech 401 K statement study

May 5, 2019

Introduction

It is my personal finance research. Today it is the first time I looked into carefully the statement of my Par Tech 401 K 2010 first quarter statement. I like to do a quick case study.

Case study

2010 is the year to recover from 2008 recession. Based on the study I did last week, it should fully recover. I looked into my 2010 statement, I saw over 50% gain in 2010.

   Large company [S & P 500 TR]  49.77
   RGACX                                       45.56
   SWPPX                                        49.52
   PAFDX                                        57.76

I just could not believe that in 2010 I did not read carefully my statement, and did not take action to put back my asset back in equity fund as I did before 2008 crash.

Actionable Items

I have hard time to reveal the fact that I do not learn how to read my statements at all from 2007 to 2019. I do not have good financial habit to do book keeping, examine possible leak, major leaks in my personal finance. I totally abandon my 401 K and IRA in money market fund starting from 2008.

I have very hard time to deal with the stress, frustration and difficulty to transit from 2007 full time job H1-B laidoff, 2008 Canada immigration case denial because of not showing financial statement, 2009 appeal case in Canada Federal court, 2010 starting a full time job again in 44 years old.

I started from top paid software programmer from 1999 to 2001, and then one year break as a home maker, went back to Motorola as a research intern, computer science PH.D..

I do not push myself hard to learn the basics why I fail as a business woman. I just chose Christian belief and then ignored the hard work I should do.

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: How to build my portolio?

April 25, 2019

Introduction

It is my personal finance research. I like to set up my portfolio and one of ideas is to put money into different funds.

My portfolio

Par tech 401 K

I need to set up my par tech 401 K into TBRCX, FXAIX $6,200 dollars. I like to put into the market in next month, hopefully there is one more year bull market before the market crashes.

I like to actively manage the fund allocation, I like to purchase
TBRCX - $3000.00
FXAIX  - $3000.00

If the price falls, then I will purchase more using my Canada cash to dollar cost average the risk. If the price continues to rise, then I will sell 10% profit and put into bond into my par tech 401K.

IRA Ameritrade

I need to transfer my IRA CD from 1.2% 6 year term into Ameritrade. I like to build those $20,000 asset allocation in the following:

One of consideration is to purchase Vanguard total bond fund, and then put rest of them into Vanguard total market index fund, Vanguard retirement fund 2040.

I know that market is high right now, I may think about 60% on bond fund, 40% on those Vanguard total market, and retirement 2040.

$12,000  VBMFX, bond fund
$3,000    VTSMX, vanguard total market index fund
$3,000    VFORX, 2040 fund

If the market crashes, I will sell VBMFX bond fund, and then purchase more 2040 fund and VTSMX fund.

Rental property management

I need to learn how to manage the risk and serve better the community of Chinese attending FAU in the city of Boca Raton.

Rental in the city of Vancouver

I like to enjoy the frugal living life style and stay as a minimalist.

Canada portfolio

I also like to build $30,000 Canada dollars portfolio. The idea is to invest into VBMFX bond fund.

I like to practice dollar cost average strategy, and also like to take advantage of low value of Canada dollar compared to US dollar.

Stock purchase

 I also like to purchase individual stocks, and try to find 20 stocks to hold in long term. I like to learn to find those stocks to hold long term in next 30 years.

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。

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.

Par tech 401 K plan study - Large company

April 27, 2019

Introduction

It is my personal finance research. I have to spend time to read all funds available for me to purchase. I like to spend 20 minutes for each section.

Par tech 401 K

Name
Returns type 
Asset Class           
3 mo         
Calendar YTD
1 yr
5 yr*
10 yr*
Inception*
Inception Date
Return as of

Story starting from Siva startup

April 20, 2019

Introduction

It is a challenging life as a software programmer. I did not do very well in decade from 2000 to 2010. I started to work on two startups, one laidoff in 2001, and then went back to computer science PH.D. program from 2002 to 2006, I joined a startup called Siva in 2006, and then Par Siva 2007, second laidoff, and then Par Tech 401 K plan from 2008 to 2019. The last part is screwed up because of my bias and my mental accounting problems. I like to document this part of experience.

Case study

This part is most difficult for me to adapt to good finance savvy person. I have to push hard to make it happen since I turned 50 years old.

I do not know that the programmer should manage her 401 K very well, and should have gained a lot of wealth from 2010 to 2019 bull market. At that time, I was in 40s, now I get old. I am over 50 years old. I like to start to learn again about equity market. I need to remove my bias from 2002 loss in stock market and 2009 stock market crush.

Here are a few blog about Siva, Par Siva, Par Tech stories. Enjoy.

Case study: Par tech 401 K position

April 30, 2019

Introduction

It is my vacation day. I have to work on my tax return. I also like to document my transactions on my par tech 401K, and I have to start to build good habit, make a quarter review, rebalance the account, and also go over the website to get familiar all product features inside the 401 K supported by Charles Schwab

My position

Total Market Value:  $6,291.74

Vested Amount:  $6,291.74

  Expand, Collapse Account Detail

	NAME	SYMBOL	MARKET VALUE	QUANTITY	PRICE	% OF ACCOUNT
	American Funds 2030 Trgt Date Retire R5E	RHETX	$0.03	0.002	$14.60	0%
	Pioneer Equity Income Y	PYEQX	$515.15	14.689	$35.07	8.19%
	T. Rowe Price Blue Chip Growth	TRBCX	$515.13	4.424	$116.44	8.19%
	Fidelity 500 Index	FXAIX	$732.24	7.157	$102.31	11.64%
	T. Rowe Price Mid-Cap Growth Adv	PAMCX	$257.54	2.899	$88.84	4.09%
	Hartford Small Cap Growth HLS IB	HBSGX	$257.56	7.942	$32.43	4.09%
	Wells Fargo Special Mid Cap Value Inst	WFMIX	$257.57	6.606	$38.99	4.09%
	Fidelity Mid Cap Index	FSMDX	$257.58	11.468	$22.46	4.09%
	Fidelity Small Cap Index	FSSNX	$257.22	12.535	$20.52	4.09%
	American Funds Europacific Growth R3	RERCX	$257.57	5.016	$51.35	4.09%
	Delaware Emerging Markets Instl	DEMIX	$257.57	13.535	$19.03	4.09%
	Fidelity International Index	FSPSX	$257.57	6.276	$41.04	4.09%
	Cohen & Steers Real Estate Securities I	CSDIX	$515.15	31.033	$16.60	8.19%
	Western Asset Core Plus Bond I	WACPX	$923.57	79.963	$11.55	14.68%
	PIMCO Income Instl	PIMIX	$772.71	64.179	$12.04	12.28%
	Fidelity US Bond Index	FXNAX	$257.58	22.417	$11.49	4.09%
	Subtotal		$6,291.74			100.00%
	Total		$6,291.74			100%

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.