Self Managed Account

Discussion in 'UPS Retirement Topics' started by airintrace, Apr 29, 2015.

  1. airintrace

    airintrace Active Member

    Has anyone had better success picking the stocks themselves and beating the return that the funds in the 401k offer? I opened my self managed account but am a little concerned that if I load up on a couple of stocks and the market gets shaky; that I will stand to loose a lot of my retirement.

    The returns since 2014 have been really low compared to what I have been accustomed to in the past with the funds offered; so I'm a little concerned about moving forward and concerned by staying put.

    What has worked for you?
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I prefer the "set it and forget it" convenience of the Bright Horizon Funds.

    I did take somewhat of a gamble and transferred $50K to my SMA to purchase 526 shares of Apple @ $95/share. It is trading at $130/share now. I have a sell order in at $150.
  3. airintrace

    airintrace Active Member

    When you hit the $150 are you going to stay in with something else or put it back into the funds?
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Good question.
  5. beentheredonethat

    beentheredonethat Well-Known Member

    I put money into various ETF's and mutual funds. I put money in Biotechnology (XBI, FBIOX) Also recently in energy funds after the oil prices dropped. (XLE). Also put some in Berkshire (BRK.B).
    Overall, they have done well. I used to do various stocks, but thought it was too risky. Note: I realize BRK.B is a stock, but it's almost like a mutual fund in the way it is configured (IMO). I'm also worried about the market crashing and recently put about 20% into money markets.
  6. rod

    rod retired and happy

    I know a couple of retired UPSers who wish they never "self managed" their money. Heaven help the person who thinks they are smarter than a professional money manager with a solid reputation and an excellent track record. You would be just as well off to go to some Indian casino and play the slots.
  7. soflaupsguy

    soflaupsguy New Member

    We don't have too many managed funds, most are index funds. While it is difficult to beat an index fund, it is possible. Buy quality and hold long term. Many buy, hear some type of bad news, panic, and sell. Don't don't do that. Follow an investor, such as Buffett, buy what they buy, or , in Buffetts case, buy BRK.b.

    And why would you sell apple at $150?
  8. airintrace

    airintrace Active Member

    The one thing I really don't like about brk.b is that they don't pay a dividend. I always feel that if these companies want me to invest in them they need to make it worth my while with a nice yield as I wait for them to grow.
  9. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Could it be that the companies you are referring to are also waiting to grow before paying a dividend?
  10. airintrace

    airintrace Active Member

    If you look at the holdings for Berkshire Hathaway b shares you will see that most if not all of those companies are established, making money, have longevity and many are paying a dividend already so why wouldn't buffet pay one as we wait for his stock as it creeps along.
  11. beentheredonethat

    beentheredonethat Well-Known Member

    Berkshire routinely beats the sp500. He doesn't have the high highs but he also doesn't have the low lows.
  12. olroadbeech

    olroadbeech Happy Verified UPSer

    have about 12% in my SMA and has done better than the regular. mostly blue chips that pay high dividends like ATT, Exxon, Johnson and Johnson, etc. some vanguard ( low fee ) index mutuals too like precious metals and index international mutual fund.

    try to remember what John Vogel, founder od Vanguard funds say. there is really no one ( maybe other than Buffett ) that can consistently pick stock winners year after year.

    he did very well with his low cost index mutual funds over the long haul. we have almost 800K in our retirement funds following his advice .
  13. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I have been reading a lot about the proposed stock split at Netflix. The cap is currently 17M shares which they want to increase to 6B. The split will be somewhere between 5:1 and 10:1. Netflix is currently trading around $660/share, which is way too high for most investors.

    I am looking for advice from this forum on what you think about Netflix and where you think they may be going in the next 5-10 years.
  14. oldngray

    oldngray nowhere special

    Vanguard has some great low cost funds. I have some money in a couple of them.
  15. brown bomber

    brown bomber brown bomber

    should have bought Netflix in Jan 2015,..I think it's almost doubled in that time frame
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    My threshold for an entry point is $100/share.
  17. burrheadd

    burrheadd Superstar

    They have some decent movies
    Check out Trailer Park Boys
  18. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I'm not concerned about specific titles. I want to know where there are in the industry and where you think they may be in the next 5-10 years.
  19. burrheadd

    burrheadd Superstar

    It was a joke
  20. beentheredonethat

    beentheredonethat Well-Known Member

    It's too risky in my opinion. It seems very similar to the bankrupt 'blockbuster' that was a very high flying company back in the 90s. As it is amazon offers a similar service. What barrier is their to entry? Another company can offer the same service if they start with enough money.