Hey all--Here's my situation. I'm 29 years old (and can therefore afford to be fairly aggressive), have a second job at a Gateway Country Store (they're extremely generous to their part-timers, btw), and will soon be eligible for their 401(k). They match 50% of your first 6% deducted--and of course no Fool would pass up an instant 50% return! I have about $10k in savings, split about 40/60 between a Roth and standard discount brokerage account.Here's the quandary--they offer a whopping 7 mutual funds, in addition to the prerequisite GTW stock. The mutual funds are of course a load of crap. But, should I diversify anyway, so all my 401(k) won't be wholly invested in one stock? Or would it probably safe to just look at things from a wider perspective and rely on my other investments for diversification?I have a feeling I know the answer, perhaps I'm just looking for reassurance that it's okay to go whole hog into GTW. Besides, that 6% withholding will only amount to about $1,000 a month.For some detail, I used BigCharts to find the best of the 7 mutuals, and compared them with GTW and the S&P500. Since the mutual data only goes back 5 years, here's the tally after that point: Gateway (GTW): up a tad over 1000%!S%P 500: up about 175%xx Growth Balanced Fund: up about 75%yy Ultra Investors: up about 70%zz Equity Growth Fund: young, up ca. 30% after <2yrs*Names of funds have been withheld to protect the underperforming louts that call themselves fund managers.Thanks for the input!Fauzi
Whoops!". . .that 6% withholding will only amount to about $1,000 a month."Don't I wish. $1,000 is my gross pay, 6% would be $60 (big money!).And of course, no one knows better than I that GTW is quite the attractive stock these days.--Fauzi
Fauzi wrote,I have a feeling I know the answer, perhaps I'm just looking for reassurance that it's okay to go whole hog into GTW. Besides, that 6% withholding will only amount to about $1,000 a month.If 6% withholding is $1,000/month, your salary calculates to be $16,667/month or $200,000/yr. That's quite a second job. It's almost enough to bring me out of retirement. <vbg>I agree with your decision to avoid the mutual funds. As long as the GTW stake is less than 25% of your net worth, I wouldn't have any problem putting the whole 401k into GTW.intercst
? what's your question? "what to do???" ?most here don't like to give Direct advice (afraid thatyou might follow it and if things turn out wrong, the bad Karma will come back to bite us), butnormally i would say, do Not put your 401(k) in comp.stock because you risk losing your job and your retirement on the same day (it's happened), but sincethis appears to be a part-time thing (after your dayof playing "Three days of the Condor"), and you're young, and it's a small amt --i don't think that applies.in similar situation, i think *i* (and i can onlydimly recall being 29) would split between GTW andthe best fund, balance being a function of how luckyi felt that day.good luck,jp
Is this a part time job? Do you have another 401k that you're putting money into in a diversified way? If so, then go for the Gateway stock.However, if you don't have another 401k, then you should do some diversification within the Gateway program, even if you don't like your options.