401-k

i was in a good mood yesterday, cleaning my garage and trying to put everything in order. when i went back inside and opened my mail i was so disappointed to see the performance of my 401-k. though i don't depend my retirement on it, i still have to give it a little time managing. the most, i was disappointed with the agent whom i've trusted to manage the allocation of my funds. during the renewal last december i specifically told him how and where to allocate my funds. when i opened the quarterly report, nothing had change at all. i had a petifull 0.58 % return. i was expecting at least 7% return on my funds this quarter. if that agent did as what i told him to do, i could have at least 10.2% return. 20 times better than what it is now.

most of us depend our retirement on 401-k and expect a boatload of cash if we retire. yet if things is mismanaged by this so-called agent, you 401-k is worth nothing when you are ready to take it out. just remember 401-k is index to the market. when the market is good, expect a fat wallet if not, then sorry ka na lang he he he.you could probably just combined it with your ss and expect a three meals in a day.

never trust you retirement on this so called agent. Do they really know a lot and better than us? probably a little better. just a little. not much. all they do is open their laptop in front of you and look at the performance of a certain investment. that's all. you and me can do that.it's not a rocketscience nor physics. it's just a matter of looking at simple numbers. frankly i had a hard time choosing what kind of brief to buy than looking at where to allocate my funds.

5 years ago i was an agent working for world marketing alliance(currently world financial group.bought by aegon, the thirt largest reinsurer, trading its stock at zurich stock exchange) I tried to sell insurance and securities to my friends. I tried to sell securities yet i don't know nothing about the market.(that's probably why i didn't pass my series 6 and series 63 licencure exam he he he).most of us(agents) doesn't know nothing about the market. we are being trained to built a business but not on what kind of securities we should recommend to our client.

i was thinking much about getting a roth ira lately but i guess that's too much for me right now. roth ira i think is much better compared to 401-k. for one thing you add your funds to roth ira after you are being tax and 401-k is before. so if you withdraw your 401-k before you reach 59 and 1/2, you will be tax 27-30% depending on your tax bracket plus 10% penalty.if you have 200 gran in your 401-k, thats about 80-90 gran taken out from you funds. thats too much. currently i have my variable universal life which is taken after tax so i don't to worry bout it too much and besides the performance is excellent, beating uo dow jones and nasdaq in thier quartelr report.i'll stick to it for a while.