Wednesday, July 8, 2015

401K Update - July 2015

Hi Everyone,

Hope all is well.  I continue to embrace the blogging community and I continue to love it.  Just a quick post tonight about my 401K Portfolio.  I said that I would post about the 401K when big changes were made or about twice a year in July and January. Usually in June and December, some of my funds pay some dividends and after 6 months of new capital, there are a decent amount of shares added.  My company's 401K policy is that employees receive 3% company match throughout the year and then a bonus of 2% at the end of the year.  My portfolio now looks like this:

As of 7/5/2015:

At the present time, I view my 401K Portfolio as an added bonus to my path to financial independence.  The overall goal of my investing journey is to retire at an age much younger than most which is why I am mostly invested in a taxable account.  I need to be able to retrieve those funds and more importantly, the dividends that are generated to support our family when the time comes.  I call my 401K an added bonus because from what I have read, I cannot touch that money until at least age 55 (depending on stipulations that I may or may not be able to take part in) but most likely 59.5 without incurring penalties.  Therefore, this money will sit in my account just compounding away for the next 32 Years!

Combining both my 401K and my taxable account, I hold roughly $143,000 in investments!

This is an increase of about $30,000 from my last post in February!!



  1. Wow, a $30k lift in 5 months is quite impressive. Imagine how huge your 401k will be in 32 years.

    1. $30k was not just the 401k, it was a combination of both accounts but I am still very grateful to have invested that much so soon in my life. Hope the good times keep rolling. 32 years is a long way away but I'll be pretty ecstatic to see the results when we get there

  2. Nice job! There actually are a couple ways to get to that money before age 55 without penalties but I think your attitude is correct. If that will fuel the second half of your retirement then great!

    "Added bonus" indeed!

    1. Yes, I continue to read about the early withdraw and ways to get around the tax/fee consequences. As retirement comes closer, i'll continue to explore these loopholes. Otherwise, an added bonus in 30 years sound great to me!

  3. Awesome job, big bump so far this year. You can, with relative ease, get your 401(k) money out penalty-free. After you retire you'll transfer the balance to a traditional IRA. Then, each year, transfer however much you're comfortable paying taxes on to a Roth IRA. If you do it smartly,you'll transfer just enough so that your deductions and exemptions will alleviate you of any taxes.

    After those transferred funds sit in a Roth for five years, you can withdraw them without penalty (or tax).

    It's what I'm doing when I retire at 34.

    1. Thanks for the tips! I'm in a weird position in that I work for a government contractor. With year to year contracts, my job is not as assured as some other people. I will probably put a post up sooner or later on this, but long story short... I'd like to have enough cash readily available to pay off our house before upping our 401k contributions. I may even cash out all of our stocks to pay off the house when we get to that point and then pick up investing all over again with $1500 extra from the mortgage per month. Or finally my wife and I want her to be a stay at home mom. If we get to the point where our investments in taxable accounts are greater than our mortgage payoff, instead of paying off the mortgage, we let the dividends build up and transfer them to a Roth IRA. Therefore, we will always have enough to pay off the house in case I lose my job while simultaneously scooting around paying additional taxes. What do you think?

      It's pretty awesome that you are on pace to retire at 34. I am no where close to that but I am certainly trying. I wish you continued success on your journey!