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401k question
Posted on 2/8/18 at 3:47 pm
Posted on 2/8/18 at 3:47 pm
30 years old. I've been working for publix going on 3 years now. I started my 401k as soon as it was open for me to do so. Publix roughly gives each full time employee 8.5% of there yearly pay in stock each year. So I've already have over 160 free shares (priced at 36.85 each right now and each quarter it pays a 0.23 per share dividend). My question is should I put a majority of my 401k into publix stock while I'm semi young and maybe change it later on down the road to be more conservative ? Right now I'm spread out 25% between 4 different options.
This post was edited on 2/8/18 at 3:49 pm
8
Posted on 2/8/18 at 3:52 pm to bamafinest1985
From a risk standpoint, why would hitch your retirement savings to the fate of the company for which you work?
ETA - that's not a rhetorical question, and I'm not being a dick, just to be clear. How you answer that question should give you the guidance you need.
ETA.2 - A company stock that has underperformed the S&P by nearly 100% since the recession.
ETA - that's not a rhetorical question, and I'm not being a dick, just to be clear. How you answer that question should give you the guidance you need.
ETA.2 - A company stock that has underperformed the S&P by nearly 100% since the recession.
This post was edited on 2/8/18 at 4:04 pm
Posted on 2/8/18 at 4:01 pm to bamafinest1985
I think the old adage of "Don't put all your eggs in one basket" strongly applies here...
I'd definitely work on trying to diversify.
I'd definitely work on trying to diversify.
Posted on 2/8/18 at 4:32 pm to bamafinest1985
Remember those Enron employees who lost their jobs and retirement savings the same week.
Posted on 2/8/18 at 6:54 pm to TigerintheNO
Thanks for the responses, and yes I've always heard to diversify when it comes to my 401k. When I first came the publix we were told that it would be wise to invest all of our 401k into the publix stock by a lot of the higher ups. I will say that the stock has done very well in the past and its well known a lot of people have retired early due to it. My department manager showed me his dividend check at some point last year and he was getting over 8k every quarter just from the stock. But thanks again for all the replies, I think ill just stick to what ive been doing
Posted on 2/8/18 at 7:32 pm to bamafinest1985
quote:
wise to invest all of our 401k into the publix stock by a lot of the higher ups
That is some old school upper mgt shite right there.
Posted on 2/8/18 at 7:34 pm to LSUcam7
Seriously! At orientation that's all they really talked about, how rich they are from the stock.
Posted on 2/8/18 at 7:47 pm to bamafinest1985
Publix plummets and you lose your job and retirement. That's the whole reason for diversifying.
Also, I never trust someone selling something to me when they have something to gain from me buying. They may be right but I'll do my own research.
Also, I never trust someone selling something to me when they have something to gain from me buying. They may be right but I'll do my own research.
Posted on 2/8/18 at 7:51 pm to bamafinest1985
Blue bell employees lost 33% of their esop stock when the Listeria hit....they haven't received any company stock since then
Posted on 2/8/18 at 7:54 pm to bamafinest1985
If your entire account is in any stock you are leaving the door open for disaster. I’d be especially concerned about public, Kroger, etc. with what Amazon is doing.
In other words, Jeff Bezos might raid your 401k.
On another note, I’ll give a round of applause to publix for giving or matching 8.5%. That’s a big number.
In other words, Jeff Bezos might raid your 401k.
On another note, I’ll give a round of applause to publix for giving or matching 8.5%. That’s a big number.
Posted on 2/8/18 at 7:56 pm to bamafinest1985
quote:
I will say that the stock has done very well in the past and its well known a lot of people have retired early due to it. My department manager showed me his dividend check at some point last year and he was getting over 8k every quarter just from the stock
Yeah, that has more to do with 8.5% of your salary buying stock non stop than Publix being a world beater as a stock. As I mentioned earlier, they've significantly underperformed the market since their last split in 2006. I haven't looked back further than that though.
Posted on 2/8/18 at 8:14 pm to bamafinest1985
Lucent was an AT&T spinoff.
Many folks in Shreveport worked for them and put most or all of their 401k in company stock. The company actually counseled employees to diversify, but employees wanted to ride the hot rocket.
At first, they looked like geniuses:
LINK
Many folks in Shreveport worked for them and put most or all of their 401k in company stock. The company actually counseled employees to diversify, but employees wanted to ride the hot rocket.
At first, they looked like geniuses:
quote:
In only six years its stock price rose from $7.56 per share to a high of $84 after multiple stock splits, and then crashed to a 2002 low of 56 cents.
Individuals’ company 401Ks sank to near worthlessness ... Retirees had to go back to work. Unexercised stock options became wallpaper.
LINK
Posted on 2/8/18 at 9:09 pm to TigerintheNO
quote:
Remember those Enron employees who lost their jobs and retirement savings the same week.
I work with several of those guys that are still working in their 60’s as a result.
Posted on 2/8/18 at 9:31 pm to slackster
quote:
Yeah, that has more to do with 8.5% of your salary buying stock non stop than Publix being a world beater as a stock. As I mentioned earlier, they've significantly underperformed the market since their last split in 2006. I haven't looked back further than that though.
He's inadvertently entered the whole dividend vs total return debate. Though I imagine if Publix has done that bad, it's not much of a debate in this case.
Posted on 2/8/18 at 10:23 pm to Teddy Ruxpin
quote:
He's inadvertently entered the whole dividend vs total return debate. Though I imagine if Publix has done that bad, it's not much of a debate in this case.
Even then, Publix dividend yield is like 2.5%, not far off of the S&P.
The bulk of their wealth was accumulated through the early 2000s. Since then, the stock has underperformed. The reason people can are accumulated wealth now is mainly due to the company giving 8.5% of your salary in stock.
Saving 8.5% of your salary in most assets will accumulate wealth over time, even if they underperform.
Posted on 2/9/18 at 6:17 am to bamafinest1985
quote:
At orientation that's all they really talked about, how rich they are from the stock.
Well, Publix has done well so far. Of course they are well off.
Nobody knows whether Publix will do so well going forward.
Posted on 2/10/18 at 10:49 am to bamafinest1985
Diversify
At your age you should put as much as you can afford in a stock based 401K, most companies will match up to 3%.
Let it ride and don't pay attention to ups and downs, over a 35 year span it should average 6-8% growth.
I never even look at my statements.
Torch - BS Finance
At your age you should put as much as you can afford in a stock based 401K, most companies will match up to 3%.
Let it ride and don't pay attention to ups and downs, over a 35 year span it should average 6-8% growth.
I never even look at my statements.
Torch - BS Finance
Posted on 2/10/18 at 3:32 pm to bamafinest1985
Is that an ESOP that's in addition to a (matched) 401k?
Posted on 2/10/18 at 5:02 pm to Jag_Warrior
Yep. According to my manager, every $360 you make you receive a share of publix stock.
Posted on 2/10/18 at 6:09 pm to dawg4lyfe
Do you have to take the stock every year or can you request they put cash in your 401K?
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