Articles tagged 401K

401k Update for 02/07/2019

100% cash.

401k Update for 12/02/2018

60% invested as of now . added 10% this week.

401k Update for 11/19/2018

50% invested as of now .

401k Update Feb 6 , 2018

Based on the fact all indexes had 8% correction and bounced now fully allocated 401k. WFSPEX 30% FSSVX 20% FSCKX 20% BTMKX 30% Do not follow my bus with same funds. there are only 12 index fund /mutual fund choices in our 401k. So this is best of the worst choices.

Lemonade Strategy for 401k : Oct 24, 2014 Update

Fully invested.

FLSTX is ranked last so far indicating fund was not positioned for bounce and invested proabbly in wrong kind of stocks. 

NMSAX which tends to be another good candidate in rallies also not ranked in top 5.

IARAX is ranked number one followed by FBTTX

Please see PDF for detail. 

Lemonade Strategy for 401k : Oct 03, 2014 Update

PDF attached

50% allocated

Retirement Investment Update for Sept 5th, 2011


Timing Model: Currently in bearish mode

Current Allocation: 100% cash.

Minimum hold period for a fund is 1 month.

Mid week changes are rare and done if fund drops in ranking midway.


All 401 related past posts:

read these to better understand the method. 

401K Bootcamp 2

 Out of all the emails I get  from the non members and the members, around 25% are about 401k. Everyone is in search of a simple solution which will give them high returns and wants to avoid bearish phases. They are looking for a simple pill which they can swallow and presto they will be good 401k investors. 


Last attempt at bootcamp kind format for was not successful for variety of reason like resistance to use of new technology, lack of time and complexity of the issue involved. If a instructing format fails it is the instructors fault. So I accept full responsibility for that botched experiment.  So one must try another way so that instead of answering each email and answering same questions again and again I can do it more efficiently .

Besides that  like swing trading bootcamp, before conducting the 401k bootcamp I had spent  enormous amount of time and effort going through thousands of site on 401k, several books on retirement planning , past archives of financial advise magazines, prospectus of major fund families and so on. So much so that I now need to buy more bookcases and storage ASAP to accommodate my new possessions from 401k and swing trading bootcamp. The Brazilian cleaning lady who came to clean my house yesterday was wondering where to put the piles of books and boxes. 

Beginning next week for next 6 weeks I will focus on 401K with series of  blog posts detailing how you can approach 401K investing. At the end of six weeks I will compile all the posts in to one section and make it available as a reference document. 

The most critical thing you must learn if you want to be successful 401k investor is that you must design a approach. If the approach is logical and well thought out then you are in control of your own destiny. The market might do its own thing  and it is not a controllable variable, but everything else I can do is controllable. For example how much to contribute, which fund to buy, when to buy, when to exit in under my control. If you concentrate your energies on controllable factors then end result would be profit. If you do that you will not be a lost sheep all the time asking question "what do I do now" . That is the essence of developing a method. 

After all the motto of Stockbee site is methods trump markets. 

What are your choices in your 401K


401K investors have choice of  possible strategies when deciding which funds to invest in their 401K. Each of the choice has certain advantages and certain risks. Understanding the available choice and then selecting a approach which best suits your objective is the key. 

The strategic choices available can be broadly listed as follow:
  1. Target Date funds
  2. Lazy Portfolios
  3. Index funds based portfolio
  4. Popular mutual fund newsletter approach.
  5. William O'Neil mutual fund approach
  6. Your own custom developed approach.

Each of these approach is workable. But to make them work you need to understand the workings of each of the approaches. Each of these approach is based on certain key assumptions. The returns you will get is a function of how those assumptions work for a particular market situation or for your personal situation. Besides the key assumptions the actual execution of those key assumptions also matters.

In order to understand these strategic choices and to develop your own plan, you need to open the hood of each of these approach and look at their inner working. If you do that you will become a knowledgeable investor. 

Information to do this kind of analysis is freely available on the net. Lot of this information is available within your own plan document in many cases. But most people are searching for simple solutions without going through the learning process. So even if someone gives them simple solution they do not understand it or can make it work for them.

I will give you a simple example of this from the 401K bootcamp. I asked a very simple questions about Target Date Funds like what choices of Target Date funds do you have in your 401k, what is their asset allocation mix, what is their glide path. If you see only 1-2 people out of 111 people who attended bothered to find this information. This information is freely available in your own 401K. In fact govt has mandated since 2006 that Target Date Fund be the default option for 401K plans. All that was required was to login in your 401k account and find this information. 

If you do not understand how Target Date Funds work and what are the assumptions behind them you are not going to understand rest of the things and even the plan I use. 

The question you need to ask yourself is why it is so difficult to find this information if the importance of 401K investment is so critical to you. The answer to that question will determine your returns.

The answer  is three word s.....  e........... b..........

401K Bootcamp July 22 to July 24


Starting Thursday I will be kicking off the 401k bootcamp for those interested. It will cover approaches to investing in long term account. And I will share how I developed my method for trading 401k. Details of how and where it will be conducted will be announced later tonight. It will be a 4 days bootcamp.