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rated:
So 1 year later, still ignorant, looking for any additional pointers or thoughts.

My original post on July 5th, 2015.
I am 29 years old and live in Minnesota and know nothing about investing.
My gross income is $33,924.80
My 401K totals $17,834.09
I have $14,504.43 invested in Comcast stock which I intend to sell, is there a way for me to put some, or all of that into my 401k?
I currently invest 10% of my income into 401k and 10% into Comcast stock (at 15% discount)

MY current information 1 year, 4 months later (age 31 in February 2017):
Gross Income: $36,689.12
401k: $26,185.63
ESPP Comcast: $6,821.96
Roth FUSEX Investor Class: $11,214.84
Emergency Fund: 4k
I currently invest 10% into 401k, 10% into ESPP, 5% into roth added VERY recently (supplemented by stock sales to make $5500.00/year)
I am aiming to retire at 50, but I know that probably isn't realistic.

Comcast ESPP is as follows:
10% maximum
15% discount
must hold money for 1 year before you can sell

So a couple of questions:

1.  Based on the stats I posted, did I manage to have decent growth compared to last year?  I THINK I did, but I really am ignorant with investments.
2.  Selling comcast stock is hard for me, because it seems so "safe."  Though right now it consists of 14% of my total profile and I know based on my post last year that is too much, and I need to continue to sell immediately when it becomes available.
3.  Any further recommendations for one such as I?
4.  Perfect world I will be retiring at 50, but with my limited income I know that isn't terribly realistic and I should be thinking more towards 60 - 65


 

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If you are interested in becoming a more educated investor, I would suggest that you go to Bogleheads.org and read their... (more)

eddot98 (Nov. 10, 2016 @ 4:49p) |

If you want to retire at age 50 retire at age 50. I would read Mr.Money mustache's website. http://www.mrmoneymustache.c... (more)

fwbuckeye (Nov. 10, 2016 @ 9:35p) |

So you're "ignorant"? I doubt it, looks like you are doing great. I would also add as others have, to sell your ESPP a... (more)

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rated:
Its very very risky to hold a lot of money in stock in the company you work for. If something goes wrong with the company not only will you lose your job, but at the same time a large portion of your investments can go down the drain, its a double whammy. Ask the people who worked for Enron that thought their stock was a sure thing and the safest place to put their money. In all I would never have more than 5-10% of my investments in the stock of the company I work for.

But overall it looks like you did a good job. Went from 32K invested to 44K, that is a good increase for your income level.

rated:
How long does it take for your Comcast stock purchases to become vested? That is, how soon can you sell them without incurring any penalties?

If you can sell a large part of the Comcast stock without penalties I would definitely continue doing that and reinvesting the proceeds into the ROTH to make sure you're getting the full $5500 into it. I would then put additional money beyond the ROTH max into a taxable investment account. I would go with a Bogleheads style lazy portfolio and invest in a US stock fund, international fund and bond fund. 

Since you're getting a 15% discount on the Comcast stock, I would still continue to purchase the Comcast stock to the maximum level that gives you the 15% discount but also plan on selling it to maintain a good ratio between how much Comcast stock you have and other funds. So for example, if you were comfortable with Comcast accounting for 10% of your portfolio then I would sell and rebalance every few months to keep it at that level. In this way you're maximizing the 15% discount you get on the stock but still keeping your overall exposure at a good level.

rated:
Comcast stock takes 1 year to become vested.
My roth which will be 5500/year gets invested into fusex immediately.

Remember when I said I'm terribly ignorant when it comes to investments. I wouldn't even know where to start with US Stock Fund, International Fund, and a Bond fund. That said I will do some more research and see if I can make sense of that .

My (extremely limited) investments are handled through fidelity by the way.

rated:
1. You went from 32.3k combined to 44.1k. You're up ~36%. Yes thats good. Now given your putting 25% of your pay into your retirement / ESPP thats about 8.4k from contributions for the year. Your'e still up 10% or so on your investment gains in the past 12 months. Thats pretty good.
2. Yes sell immediately.   (ETA :  continue the ESPP given the discount but sell when its vested after 1 year)   That will give you 1 year worth of Comcast stock on hand at any given time)
4. Early retirement isn't limited by your income. If you can live off your 40k income while saving 25% of it then you'll be able to live off a retirement income of 30k.

rated:
Dustin1280 said:   Remember when I said I'm terribly ignorant when it comes to investments. I wouldn't even know where to start with US Stock Fund, International Fund, and a Bond fund. That said I will do some more research and see if I can make sense of that .
 


All you need, including specific Fidelity funds to use: https://www.bogleheads.org/wiki/Three-fund_portfolio

 

rated:
Thank you sir!

rated:
Convert FUSEX -> FUSVX. At 10k+ you should qualify.

Make sure you pay no more in expense ratio than shown in Morningstar or fidelity website (I think <0.5% or so). If Roth is through fidelity - you are good. If not, and you pay more than direct fidelity rates, transfer now!!

Diff in expense ratio may seem small at first - but projected over your retirement time horizon it adds up to a LOT!!

rated:
build you emergency fund more and put in gsbank or other 1% savings to get something.

rated:
Do you prepare your own tax forms, or does someone else? At your income level & contributions to qualified retirement savings accounts, you probably qualify for the "Saver's Credit", which may reduce / eliminate any federal income tax liability at the end of the year.

Is your 401K a "Traditional 401K" or a "Roth 401K"? I'd recommend a Roth 401K, as long as it didn't increase your current year tax liability.

rated:
daw4888 said:   Its very very risky to hold a lot of money in stock in the company you work for. If something goes wrong with the company not only will you lose your job, but at the same time a large portion of your investments can go down the drain, its a double whammy. Ask the people who worked for Enron that thought their stock was a sure thing and the safest place to put their money. In all I would never have more than 5-10% of my investments in the stock of the company I work for.

But overall it looks like you did a good job. Went from 32K invested to 44K, that is a good increase for your income level.

  It is pretty foolish to pass up a 15% discount on a stock that has performed well over the past couple of years and even recently is fairly stable.  Sure, socking away your life savings in  company stock isn't good (unless you win), but that isn't what OP is doing... he is just taking advantage of this opportunity and seems to be getting out relatively quickly.  Even if OP held about $10k in it, on purpose, I wouldn't fault him for that.

As for Enron, that sucks... but tell this story to the employees of Microsoft, Apple, Google, Amazon, etc.  I don't think they would necessary share your opinion.  It is a risk, but it can be a lucrative risk.

rated:
Dustin1280 said:   So 1 year later, still ignorant, looking for any additional pointers or thoughts.

My original post on July 5th, 2015.

I am 29 years old and live in Minnesota and know nothing about investing.
My gross income is $33,924.80
My 401K totals $17,834.09
I have $14,504.43 invested in Comcast stock which I intend to sell, is there a way for me to put some, or all of that into my 401k?
I currently invest 10% of my income into 401k and 10% into Comcast stock (at 15% discount)

MY current information 1 year, 4 months later (age 31 in February 2017):
Gross Income: $36,689.12
401k: $26,185.63
ESPP Comcast: $6,821.96
Roth FUSEX Investor Class: $11,214.84
Emergency Fund: 4k
I currently invest 10% into 401k, 10% into ESPP, 5% into roth added VERY recently (supplemented by stock sales to make $5500.00/year)
I am aiming to retire at 50, but I know that probably isn't realistic.

Comcast ESPP is as follows:
10% maximum
15% discount
must hold money for 1 year before you can sell

So a couple of questions:

1.  Based on the stats I posted, did I manage to have decent growth compared to last year?  I THINK I did, but I really am ignorant with investments.



 

  Based on the numbers you provided, it's hard to tell exactly how more more you invested in the last 16 months?
your portfolio went up 12k (37% gains) which is amaze-balls if you contributed $0 more.
It sucks if you contributed 12k (7% loss)

So how much total did you contribute?

rated:
Roughly 8.5k was contributed

rated:
I use TaxAct for taxes >_>.


As far as Savers credit, I will have to look into that.

My 401k is standard and my Roth is of course on top of that.

rated:
Dustin1280 said:   My 401k is standard and my Roth is of course on top of that.
 

  
You mean Roth IRA? Or Roth 401(k)?

rated:
Roth IRA, I do NOT have a Roth 401k

rated:
Dustin1280 said:   Roughly 8.5k was contributed
  so you gained 3.5k?
best case, your returns were ~11%. That's good. Keep it up and you'll retire in some time (as opposed to retiring in no time).
While past returns don't predict future performance, if you can keep that rate of return up, you'll be doubling your money every 6.5 years.
 

rated:
Dustin1280 said:   So 1 year later, still ignorant, looking for any additional pointers or thoughts.

My original post on July 5th, 2015.

I am 29 years old and live in Minnesota and know nothing about investing.
My gross income is $33,924.80
My 401K totals $17,834.09
I have $14,504.43 invested in Comcast stock which I intend to sell, is there a way for me to put some, or all of that into my 401k?
I currently invest 10% of my income into 401k and 10% into Comcast stock (at 15% discount)

MY current information 1 year, 4 months later (age 31 in February 2017):
Gross Income: $36,689.12
401k: $26,185.63
ESPP Comcast: $6,821.96
Roth FUSEX Investor Class: $11,214.84
Emergency Fund: 4k
I currently invest 10% into 401k, 10% into ESPP, 5% into roth added VERY recently (supplemented by stock sales to make $5500.00/year)
I am aiming to retire at 50, but I know that probably isn't realistic.

Comcast ESPP is as follows:
10% maximum
15% discount
must hold money for 1 year before you can sell

So a couple of questions:

1.  Based on the stats I posted, did I manage to have decent growth compared to last year?  I THINK I did, but I really am ignorant with investments.
2.  Selling comcast stock is hard for me, because it seems so "safe."  Though right now it consists of 14% of my total profile and I know based on my post last year that is too much, and I need to continue to sell immediately when it becomes available.
3.  Any further recommendations for one such as I?
4.  Perfect world I will be retiring at 50, but with my limited income I know that isn't terribly realistic and I should be thinking more towards 60 - 65


 

  I am shocked to see someone who makes the same amount as me, i dont think  i have seen that  on here, i always thought the people on here were those who made very close to , or over , 6 figures.. 
Thats a big relief    

rated:
Dus10 said:   
daw4888 said:   Its very very risky to hold a lot of money in stock in the company you work for. If something goes wrong with the company not only will you lose your job, but at the same time a large portion of your investments can go down the drain, its a double whammy. Ask the people who worked for Enron that thought their stock was a sure thing and the safest place to put their money. In all I would never have more than 5-10% of my investments in the stock of the company I work for.

But overall it looks like you did a good job. Went from 32K invested to 44K, that is a good increase for your income level.

  It is pretty foolish to pass up a 15% discount on a stock that has performed well over the past couple of years and even recently is fairly stable.  Sure, socking away your life savings in  company stock isn't good (unless you win), but that isn't what OP is doing... he is just taking advantage of this opportunity and seems to be getting out relatively quickly.  Even if OP held about $10k in it, on purpose, I wouldn't fault him for that.

As for Enron, that sucks... but tell this story to the employees of Microsoft, Apple, Google, Amazon, etc.  I don't think they would necessary share your opinion.  It is a risk, but it can be a lucrative risk.

I disagree. 15% "discount" for an investment you're stuck with for 12 months is hardly a good deal.  Apart from market crashes, what if OP needs to cash out for unexpected emergencies?
If OP likes Comcast, he can buy the shares at full price, and write deep in-the-money calls for whatever time-period he prefers.

rated:
Poese: us lower middle class people exist as well 

DeGlass:
It's a great deal, comcast is "safe", and it's 15% off the lowest stock price in each quarter (so even better gains)
I also have an emergency fun of 4k.

I have definitely profited significantly from the stock options and generally reinvest them as soon as they become available.

rated:
That's why you have an emergency fund.

rated:
Dustin1280 said:   Poese: us lower middle class people exist as well 

DeGlass:
It's a great deal, comcast is "safe", and it's 15% off the lowest stock price in each quarter (so even better gains)
I also have an emergency fun of 4k.

I have definitely profited significantly from the stock options and generally reinvest them as soon as they become available.

  I work for a large telecom and I used to take full advantage of the ESPP as well.  We could sell immediately after 6 months.  Too bad the program got canceled 

rated:
DeGlass said:   15% "discount" for an investment you're stuck with for 12 months is hardly a good deal.  
 

  
15% discount is a great deal.   

12 month holding period is not a good deal.  It does force OP into market risk.   But there should be a way to hedge against that somehow I'd expect.    

 

rated:
DeGlass said:   
Dus10 said:   
daw4888 said:   Its very very risky to hold a lot of money in stock in the company you work for. If something goes wrong with the company not only will you lose your job, but at the same time a large portion of your investments can go down the drain, its a double whammy. Ask the people who worked for Enron that thought their stock was a sure thing and the safest place to put their money. In all I would never have more than 5-10% of my investments in the stock of the company I work for.

But overall it looks like you did a good job. Went from 32K invested to 44K, that is a good increase for your income level.

  It is pretty foolish to pass up a 15% discount on a stock that has performed well over the past couple of years and even recently is fairly stable.  Sure, socking away your life savings in  company stock isn't good (unless you win), but that isn't what OP is doing... he is just taking advantage of this opportunity and seems to be getting out relatively quickly.  Even if OP held about $10k in it, on purpose, I wouldn't fault him for that.

As for Enron, that sucks... but tell this story to the employees of Microsoft, Apple, Google, Amazon, etc.  I don't think they would necessary share your opinion.  It is a risk, but it can be a lucrative risk.

I disagree. 15% "discount" for an investment you're stuck with for 12 months is hardly a good deal.  Apart from market crashes, what if OP needs to cash out for unexpected emergencies?
If OP likes Comcast, he can buy the shares at full price, and write deep in-the-money calls for whatever time-period he prefers.

  
The OP buys the stock for the lowest price during the quarter, at a 15% discount. At worst, that's a 15% discount to the current price, but given how stocks fluctuate, it can be much better then that. Looking at the last 3 months for comcast. Price today 65.1 and the lowest price is 60.66. So the Op wold be paying 51.56 per share. So he is buying it at a 20.8% discount. He should probably look into some hedging via options, but that's a very good deal.

OP: You should focus on increasing your salary. A 5% raise will be about $1700, but companies in the area may not blink an eye to bringing you in at 40, just because the total amount is low and may be within the range for a different title. Take a look around. The less money you make, the harder you'll have to save and the more you'll have to get lucky in the market. Also, the earlier you increase your base salary, the much much better you'll be down the road.

rated:
If you are interested in becoming a more educated investor, I would suggest that you go to Bogleheads.org and read their Wiki. Then you can follow the instructions on what to post for your portfolio and the good people there can advise you.

rated:
If you want to retire at age 50 retire at age 50. I would read Mr.Money mustache's website. http://www.mrmoneymustache.com 
You need about 25 times what you spend in a year to retire. In theory withdrawing about 4% you would meet your spend.
 

rated:
So you're "ignorant"? I doubt it, looks like you are doing great. I would also add as others have, to sell your ESPP as soon as possible. That's what I do. For a stock like comcast, it likely wont go up or down too much, but you don't want that much of your wealth in one stock. Sell it and diversify to the whole market.

For great portfolio advice, you can check out bogleheads.org

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