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Author: tbcoleman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25214  
Subject: Self directed 401k Date: 8/20/2013 12:32 AM
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My 401K at my company has just allowed me to open a self directed portfolio, I am currently putting in the max allowed 17,500 per year with a 2,000 company match. The question is how often should I purchase stocks, every: two weeks, monthly, quarterly, semi annually, annually? the firm charges 7.95 per trade. The more I trade the more I give the company, not cool.

I am also curious as to what to do with my cash as I am waiting to invest it? Let it sit in money market that makes 0.0000001% or put into my 2055 fund and move when I decide to make a purchase? My company will only allow me to invest 95% of my contributions to self directed brokerage account.

Thank you.
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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25113 of 25214
Subject: Re: Self directed 401k Date: 8/20/2013 2:15 AM
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The question is how often should I purchase stocks, every: two weeks, monthly, quarterly, semi annually, annually? the firm charges 7.95 per trade. The more I trade the more I give the company, not cool.

How often do you think you will find stocks that are a good buy? And how many times do you want to trade into a single stock? If you answer those questions for yourself, you will come to the right answer for you.

I am also curious as to what to do with my cash as I am waiting to invest it? Let it sit in money market that makes 0.0000001% or put into my 2055 fund and move when I decide to make a purchase? My company will only allow me to invest 95% of my contributions to self directed brokerage account.

I would suggest either investing in the 2055 fund (if you are happy with that option) or, if you have one available, a low cost index fund until you find stocks that you want to buy, and taking that opportunity to buy the stock (see the questions above). I would also suggest never putting more than 5% of your overall investment portfolio (including taxable, non-taxable and tax-deferred accounts) into a single stock.

AJ

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Author: tbcoleman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25121 of 25214
Subject: Re: Self directed 401k Date: 8/21/2013 10:03 PM
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Thank you

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