2 Retirement account Options

[earlybird]

Here are two other options we can get into:
It's Equity/stock but a trust and not piblicly quoted.

M.L. Equity Index Trust 1
fund performance:

start date: 1/12/93
price as of 10/21/05 $87.61
total return for the quarter............ 3.54%
..                            year to date..... 2.61%
                               one year..........12.01%

Avg. annual total return 3 years:............  16.42%
                                       5 years.............   -1.74%   
                                      10 years.............  9.20%
                           since inception:............. n/a


Is that something to get into?

And then this one..

Vanguard Multi-cap Core Portfolio

Also, this fund is not publicly quoted.

It's an equity/stock

price 10/21/05 12.24
total return:
quarter:     7.08
ytd:            3.93

Avg. annual total return:
1 year         14.00
3 year         22.32
5year          n/a
10 year       n/a
since inception:       7.05

 

[wabmester]

The historical returns really tell you nothing. Do they give you the fund expenses? In any case, to minimize expense drag, Vanguard is virtually guaranteed to be better than Merrill Lynch.

 

[REWahoo]

earlybird,

Reflecting on all your posts, you seem to be looking to use this board as your financial advisor. That probably isn't the best course of action for you in the long term. My recommendation is that you:

1. Do what many others have advised and sell a significant portion your oil stocks immediately, parking your gains into a money market account.

2. Educate yourself by reading William Bernstein's "The Four Pillars of Investing" and other books recommended on this site.

3. With some knowledge of investing under your belt, put together a proposed investment plan and post it on this board for feedback.

4. Weigh the advise you get carefully and make your own decision on the best course for your individual circumstance.

This will take a little time and require some work, but you are in a very enviable position financially. Lock up your oil stock gains now and take the time to educate yourself on managing your own investments. I think you will find it time well spent.

 

[Dawg52]

earlybird,

Reflecting on all your posts, you seem to be looking to use this board as your financial advisor.  That probably isn't the best course of action for you in the long term.  My recommendation is that you:

1.  Do what many others have advised and sell a significant portion your oil stocks immediately, parking your gains into a money market account.

2.  Educate yourself by reading William Bernstein's "The Four Pillars of Investing" and other books recommended on this site. 

3.  With some knowledge of investing under your belt, put together a proposed investment plan and post it on this board for feedback.

4.  Weigh the advise you get carefully and make your own decision on the best course for your individual circumstance.

This will take a little time and require some work, but you are in a very enviable position financially.  Lock up your oil stock gains now and take the time to educate yourself on managing your own investments.  I think you will find it time well spent.

I second that motion! Now time for another glass of wine.

 

[template]

earlybird,
My recommendation is that you:

1. Do what many others have advised and sell a significant portion your oil stocks immediately, parking your gains into a money market account.

2. Educate yourself by ...

This may be obvious, but ... If your oil stocks are currently held inside your 401K, make sure that the money market fund you use is also inside your 401K. The point is to diversify your investments without taking a big tax penalty.

Later, you could convert your 401K into an IRA at Vanguard or Fidelity, who offer several other investment options.

 

[JohnP]

"there are many roads to Dublin..."  I stole that from (I think) Taylor in Morningstar's Vanguard Diehard forum. 

Earlybird - I'm pleased that you have continued in taking control of your retirement so well. 

People here have suggested that you diversify your portfolio from basically one stock to several wide ranging funds to reduce "Risk" - however that is defined.  Diversification involves accumulating a variety of funds that have different objectives such that when the bottom drops out for one or another segment of the market, you still have some viable assets to continue with.  The 1999-2000 Tech Bubble was a powerful example of what happens when large numbers of people concentrate their hopes and dreams in a single segment of the market;  many of the tech stocks went to astronomical valuations and then to bankruptcy leaving the owners out of luck. 

Relative to choosing specific funds, I'd have to say that it is a personal matter how you make your selections.  I can merely tell you how I do it and others are welcome to relate theirs also. 

I have taken the Tech Bubble as an opportunity to learn from and hopefully to avoid it's consequences.  First, I look at the charts for several funds on Yahoo  http://finance.yahoo.com and look for three periods; (1) did it participate in the pre-2000 runup of values, (2) did it drop 50%  or more in the 2000-2002 period, and (3) how has it recovered since the bottom in Feb 2003.  I look unfavorably on those that went up greatly before 2000, dropped precipitously after and havent done much since - ala FMAGX, for instance.  Then I factor in outside considerations, deficits, market levels, PEs in market segments, international exposure, etc for the portfolio and... throw that dart.

JMHO

JohnP

 

[earlybird]

John, THANK YOU.  THIS is the kind of information I need.  I just don't know the right questions to ask yet.  I'll get there.   

"First, I look at the charts for several funds on Yahoo  http://finance.yahoo.com and look for three periods; (1) did it participate in the pre-2000 runup of values, (2) did it drop 50%  or more in the 2000-2002 period, and (3) how has it recovered since the bottom in Feb 2003.  I look unfavorably on those that went up greatly before 2000, dropped precipitously after and havent done much since - ala FMAGX, for instance"

While studying the options we have for our 401k money all day long yesterday, starting early in the morning, lol, I saw that the companies all did very well in the 90's and fell apart early 2000 and were just peddling in circles now.  I DID NOT KNOW WHY!!!  I remember now the technology stocks (nasdac?) I think? fell apart a while ago and people lost their life's savings.  Awful, just awful.

I will now go check out and see how these funds have recovered since that 2000 problem.... You have given me more tools to work with!!! thank you for not giving up on me