Six years ago my Employer started a Simple IRA plan at ......

[General Ray]

work, a Simple IRA plan is where you invest your money before taxes come out of your paycheck at work, the thought being instead of paying the taxes up front you keep the tax money so it can earn money along with your investment money then you pay your taxes later after retirement.

Any how, I get a statement once every three months from the investment company that manages my IRA investment and for the first 5 1/2 years this IRA didn't seem to make much money, it would only seem to grow very little but for the most part it grew from my contributions and employers contributions.

I was thinking maybe the funds that we were in were just not doing good, then my last statement caught my eye, they changed the funds that we were in 6 months ago and my IRA started to make money.

They moved us into what they call a multi-manager fund, buying stock in small, mid and large companys, for the last three months alone my IRA has jumped $3500, after you deduct my and my employers contributions my IRA grew by a avg of $700 a month. I know nothing about investments and stocks, way over my head and I understand the value of these things go up and down and long term is the goal but it sure was nice to see my tiny little nest egg finally move forward and earn something.

Granted my little nest egg is very tiny, about $30.000 but in time it will grow plus you all can help with my tiny little nest egg. I want every body to go out and burn up some gas this weekend , your not using enough plus every body needs to start eating more McDonald's hamburgers, you are looking alittle thin, time to bulk up abit and what about a new computer, don't ya think it's time to upgrade that computer of yours with a new Hewlett-Packard

Here are some of the companys that make up my multi-manager IRA fund

Halliburton Co.
BP PLC
Union Pacific Corp.
Exxon Mobil Corp.
McDonald's Corp.
Morgan Stanley
JPMorgan Chase & Co.
Time Warner, Inc.
Hewlett-Packard Co.
Apple Computer, Inc.
Microsoft Corp.
Cisco Systems, Inc.
Intel Corp.
Lehman Brothers Holdings, Inc.
Proctor & Gamble, Co.
Bear Stearns Cos., Inc.
International Business Machines Corp.
Boeing Co
Goldman Sachs Group, Inc.
UnitedHealth Group, Inc.
Qualcomm, Inc.
Legg Mason, Inc.
Simon Property Group, Inc.
ProLogis Trust
Boston Properties, Inc.
Avalon Bay Communities, Inc.
Schlumberger, Ltd.
Total SA
Novartis AG
British Sky Broadcasting PLC
UniCredito Italiano SpA
Schneider Electric SA
HBOS PLC
Corporate Bonds
Mortgages/Asset-Backed
Gov't/Agency
Yankee Issues
Foreign/Canadian Issues

 

[Keith IL]

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[TeeJay]

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[General Ray]

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[General Ray]

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[Keith IL]

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[TeeJay]

After the first 3 years I could transfer a year each year thereafter.

Enron comes to mind these days and should be a consideration.

I would have, if I had been knowledgeable at the time, hired a family planner, not just a licenced broker, and transferred from the company plan when they became vested into the planners control, which would have given myself control of invested areas. I have no doubt my investment would have done better outside of company entitlement to invest. You gave a good example in the original posting. Just a personal opinion Ray, no expert here either.

 

[General Ray]

online or call a number and change my stocks from one to another but I just let the outside investment company folks decide what is best to do, I would probably lose everything playing around.

 

[Craig in Alabama]

then it grows TAX FREE. My wife..the tax expert in the family says its the only way to go. But thats just her opinion.

 

[General Ray]

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[Craig in Alabama]

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[TeeJay]

The Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It's named after the late Senator William V. Roth, Jr.
The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for any other form of retirement savings: if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and eliminating the need to take minimum distributions after age 70

 

[TeeJay]

The problem exists below the age of 59 1/2 and above 70 1/2. If you retire before 59 1/2 you have to transfer to an agent and required to determine the amount you want to draw each year for 5 year increments until above the 59 age limit. You can't increase or decrease without a 20% penalty, above 59 1/2 you can change every year or more often. There are some creative ways getting around the restrictions if you know before the decision is made. At 70 1/2 years of age you are required to liquidate within a certain amount of years (caculated per living indexes). They are going to get those taxes.

Between the age of 59 and 70 1/2 you can have complete control without interference or penalty except for the taxes.

The Roth you have no pre-tax choice, you pay all taxes before contribution as does your company and you pay yearly taxes on reinvestments of earnings. You can withdraw any amount any time without penalty once you are entitled.

 

[Dave~UT]

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[John M (Ct)]

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[Art SC]

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After all...I DO have neighbors to consider!

 

[General Ray]

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[General Ray]

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[General Ray]

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[General Ray]

came to a page that showed how each stock did for the quarter, I think thats what I was looking at, here were some of the bigger winners.

Real Estate funds were up

Simon Property Group, Inc.
7.16%
ProLogis Trust
5.95%
Boston Properties, Inc.
5.19%
Avalon Bay Communities, Inc.
4.91%
Equity Residential Properties Trust
4.68%

Then these what ever they are jumped real good

Corporate Bonds
39.80%
Mortgages/Asset-Backed
36.91%
Gov't/Agency