Wall Street City: Stock Trading & General Investing Thread

EganSoccerWords

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Okay, pork belly prices have been dropping all morning, which means that everybody is waiting for it to hit rock bottom, so they can buy low. Which means that the people who own the pork belly contracts are saying, "Hey, we're losing all our damn money, and Christmas is around the corner, and I ain't gonna have no money to buy my son the G.I. Joe with the kung-fu grip! And my wife ain't gonna f... my wife ain't gonna make love to me if I got no money!" So they're panicking right now, they're screaming "SELL! SELL!" to get out before the price keeps dropping. They're panicking out there right now, I can feel it.
then we get mcribs
 
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NYCFC_Dan

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Become a NYC Public School teacher, invest 10% of salary in fixed return TDA fund that guarantees 7% ROI thanks to the great taxpayers of NYC. Retire a multimillionaire at 55 or younger depending on if they give you a buyout. You also get a pension (if NYC is not bankrupted). Move to Florida.
That's not too shabby at all.
I do 10% into my 401k which does a $750 match as well. Then the company does a 8.5% personal plan for us. Every year we get 8.5% (changes yearly) of our gross income put in a retirement plan as company stock. We're one of the largest privately held companies and when I started stock was at $17 and it's at $43 right now.
My goal is 45-50 years old.
 

mgarbowski

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That's not too shabby at all.
I do 10% into my 401k which does a $750 match as well. Then the company does a 8.5% personal plan for us. Every year we get 8.5% (changes yearly) of our gross income put in a retirement plan as company stock. We're one of the largest privately held companies and when I started stock was at $17 and it's at $43 right now.
My goal is 45-50 years old.
That's good. How much do you figure you need to retire then?
 

NYCFC_Dan

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That's good. How much do you figure you need to retire then?
I am looking at 1.5-2 million range on the low side.
Don't plan on owning a home, don't own now. I pay $200 a month to my parents and starting next month I'll be paying $400 to my brother. New house, big room and personal bathroom and the entire upstairs to myself so it pays.
I save a lot as it is not counting my retirement plans. When I move out it will be with friends and maybe $500 a month on the high side. It's very cheap to live down here. You can easily get a 3 bedroom apartment/condo for under $1,200 a month and that's covering all your expenses.

So unless something major happens with the company I can easily live off of quarterly dividends in that range.
They also let you borrow against your 401k at a ridiculously low rate (1-2%) so I could even borrow to start and pay back in dividends. But I'd plan on having a lot of money saved to begin anyway.
My only expenses are rent and car cellphone. And in a year the car won't be one.
Down the road things may change and I might decide to buy a house and if things happen it just extends the time frame a bit.
In another year I'll easily be able to save 25% of my net income in a savings account or reinvest by purchasing shares quarterly (when the offering period opens).
 
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joe

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I am looking at 1.5-2 million range on the low side.
Don't plan on owning a home, don't own now. I pay $200 a month to my parents and starting next month I'll be paying $400 to my brother. New house, big room and personal bathroom and the entire upstairs to myself so it pays.
I save a lot as it is not counting my retirement plans. When I move out it will be with friends and maybe $500 a month on the high side. It's very cheap to live down here. You can easily get a 3 bedroom apartment/condo for under $1,200 a month and that's covering all your expenses.

So unless something major happens with the company I can easily live off of quarterly dividends in that range.
They also let you borrow against your 401k at a ridiculously low rate (1-2%) so I could even borrow to start and pay back in dividends. But I'd plan on having a lot of money saved to begin anyway.
My only expenses are rent and car cellphone. And in a year the car won't be one.
Down the road things may change and I might decide to buy a house and if things happen it just extends the time frame a bit.
In another year I'll easily be able to save 25% of my net income in a savings account or reinvest by purchasing shares quarterly (when the offering period opens).
Keep funding the 401k. $43 goes back to $17 just as easy.

Awesome situation though. Hope the plan works out!
 
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NYCFC_Dan

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Keep funding the 401k. $43 goes back to $17 just as easy.

Awesome situation though. Hope the plan works out!
It's through Voya so I can allocate % to a number of plans. At the moment I'm 100% vested in my company's stock. But I can change that quarterly. So if we hit a wall for some reason I'd take the initial hit but aside from that I can transfer to a different portfolio.
 

FredMertz

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It's through Voya so I can allocate % to a number of plans. At the moment I'm 100% vested in my company's stock. But I can change that quarterly. So if we hit a wall for some reason I'd take the initial hit but aside from that I can transfer to a different portfolio.
If your company is privately held, where are you getting a stock price quote from?

Also, did you mean to say, "100% invested" n your company stock? If so, that's a dangerous game to play.

Finally, although not as bad as most people think, borrowing from your 401k should be a last resort -- the money you take out stops growing and only earns the 1-2% your passing back into it.

I know I'm not your dad, but I take this stuff very seriously!
 

adam

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If your company is privately held, where are you getting a stock price quote from?

Also, did you mean to say, "100% invested" n your company stock? If so, that's a dangerous game to play.

Finally, although not as bad as most people think, borrowing from your 401k should be a last resort -- the money you take out stops growing and only earns the 1-2% your passing back into it.

I know I'm not your dad, but I take this stuff very seriously!
Glad you're not my dad. You're the guy who kicked his own son's butt in fantasy footy!
 
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NYCFC_Dan

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If your company is privately held, where are you getting a stock price quote from?

Also, did you mean to say, "100% invested" n your company stock? If so, that's a dangerous game to play.

Finally, although not as bad as most people think, borrowing from your 401k should be a last resort -- the money you take out stops growing and only earns the 1-2% your passing back into it.

I know I'm not your dad, but I take this stuff very seriously!
No I've never done it but just mentioned it's an option. They do the same rates (we have a credit union) for car loans as well and low rates for personal. It's a very good company when it comes to that.
We're still growing (grocery retail) and just went into Virginia and about to build a warehouse in South Carolina. They're expecting massive growth in the next decade.
We have a. Independent firm come in and evaluate our company and they base it on current market and competition. We went down a buck last time despite record profits and sales. Mostly due to struggling market/competition. I believe it's Raymond James financial.
 

NYCFC_Dan

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Our regional director bought $1000 worth when he was 18 and this was back in late 70's and those shares alone are valued at well over $150,000. Used it as an example at our last appreciation diner.
 

FredMertz

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Our regional director bought $1000 worth when he was 18 and this was back in late 70's and those shares alone are valued at well over $150,000. Used it as an example at our last appreciation diner.
Understood. I heard many similar comments from people who worked at Bear Stearns and Lehman Brothers before they both went to zero. You should never have all of your eggs in one basket.

Also, if your company stays private and there is no public market for the shares, who would you sell them to at whatever price Raymond James says they're worth?
 
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413Blue

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I wish you the best, but if their is one industry that I would not make a major long-term bet on, it would be retail, and especially grocery. Perhaps it continues to thrive for another generation, but it's an incredibly crowded industry and I certainly would not want everything riding on it. You may wake up one day with Ahold shares.
 
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NYCFC_Dan

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Understood. I heard many similar comments from people who worked at Bear Stearns and Lehman Brothers before they both went to zero. You should never have all of your eggs in one basket.

Also, if your company stays private and there is no public market for the shares, who would you sell them to at whatever price Raymond James says they're worth?
The company purchases them back.
My friend works for a privately held company as well and it works the same way. Figured it was pretty common.
Our company has 0 debt and 2 billion in operating cash. I think I'm good for now lol.
 

FredMertz

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Jack

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Our regional director bought $1000 worth when he was 18 and this was back in late 70's and those shares alone are valued at well over $150,000.
Love this post.

The market rewards a long-term passive investment philosophy.

-If one was to invest in the S&P500 on January 1st 2006, on December 31st 2015 you would have returned 7.3% per annum.

-If one was to invest in the S&P500 on January 1st 1999, on December 31st 2015 you would have returned 5.0% per annum.

-If one was to invest in the S&P500 on January 1st 1989, on December 31st 2015 you would have returned 10% per annum.

Point is, there will be a lot of short-term volatility over the long run. Stay invested and look for those occasional value opportunities.
 

NYCFCfan

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Love this post.

The market rewards a long-term passive investment philosophy.

-If one was to invest in the S&P500 on January 1st 2006, on December 31st 2015 you would have returned 7.3% per annum.

-If one was to invest in the S&P500 on January 1st 1999, on December 31st 2015 you would have returned 5.0% per annum.

-If one was to invest in the S&P500 on January 1st 1989, on December 31st 2015 you would have returned 10% per annum.

Point is, there will be a lot of short-term volatility over the long run. Stay invested and look for those occasional value opportunities.
This guy is wearing a suit, trust him!

But in all seriousness, putting your eggs in one basket is very risky. If you're comfortable with that risk then all the power to you. I'm invested in a slew of mutual funds because if one (or 2 or 5) companies tank then I'll take a hit but I won't be devastated. Mutual funds spread out the risk, as a result usually you won't get insane returns, or devastating losses, whereas single stocks can make you lots of money but also leave you in ruins.

At the same time, I'm not even 30 yet so I'm not too worried about big losses right now because over time I'm confident they'll be doing well.

Once you're closer to retirement though you should strongly consider moving your money out of the market and into more secure investments like bonds, or even t-notes and CDs, so that a big hit before you retire doesn't force you to work longer than you anticipated.
 
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FredMertz

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Love this post.

The market rewards a long-term passive investment philosophy.

-If one was to invest in the S&P500 on January 1st 2006, on December 31st 2015 you would have returned 7.3% per annum.

-If one was to invest in the S&P500 on January 1st 1999, on December 31st 2015 you would have returned 5.0% per annum.

-If one was to invest in the S&P500 on January 1st 1989, on December 31st 2015 you would have returned 10% per annum.

Point is, there will be a lot of short-term volatility over the long run. Stay invested and look for those occasional value opportunities.
I like your thought process, but that doesn't apply when you are investing 100% of your portfolio in a single stock of the company you work for. Shit hits the fan and you lose your savings and your job.