Would I be nuts if

Question

let me start by saying im only 29 so if this goes bad I would have plenty of time to get it back. I can transfer my 401k into my company stock FSS.  Its been beat down like all others but if I do it I would make 235 bucks for every penny it goes up from here. I could just hold it for years even if goes down from here. What do u guys think

son_of_sam · Answer

let me start by saying im only 29 so if this goes bad I would have plenty of time to get it back. I can transfer my 401k into my company stock FSS.  Its been beat down like all others but if I do it I would make 235 bucks for every penny it goes up from here. I could just hold it for years even if goes down from here. What do u guys think

Wake2002 · Answer

Why does it have to be all or nothing? Based on your numbers above, sounds like you have about $105-$110K in the 401K? That's a lot of money to be playing around with, even at 29. If you feel strongly about the company, why not move $15-20K into it and still maintain some diversification? That way, if you are right, you'll still benefit handsomely, but if you are wrong, you won't lose it all. Full disclosure, its a much larger percentage then I would put into one stock, but if you were looking to put 100% in, I don't think my typical 3-5% allocation will be what you wanted to hear.

If you move 100% in and the company goes under, you are left with no 401K and no job

wallstreetcappers · Answer

Your margins are abysmal buddy..What happened to your business?Company has 20 times debt to cash, stagnant to dropping growth.I dont know why they are paying a divi when they have no cash.

Rush51 · Answer

[Quote: Originally Posted by Wake2002]  Why does it have to be all or nothing?  Based on your numbers above, sounds like you have about $105-$110K in the 401K?  That&#x27;s a lot of money to be playing around with, even at 29.  If you feel strongly about the company, why not move $15-20K into it and still maintain some diversification?  That way, if you are right, you&#x27;ll still benefit handsomely, but if you are wrong, you won&#x27;t lose it all.  Full disclosure, its a much larger percentage then I would put into one stock, but if you were looking to put 100% in, I don&#x27;t think my typical 3-5% allocation will be what you wanted to hear.&#xD;&#xA;If you move 100% in and the company goes under, you are left with no 401K and no job  [/Quote]Some people refuse to learn the lessons from Enron.  No matter how good the company you work for seems to be , people should have no more than 10% of their 401k allocated to their company&#x27;s stock.   Why take such unnecessary risk?  You&#x27;re already getting your income from the same company.    It&#x27;s the equivalent of "going all in".

son_of_sam · Answer

I have never even for one day owned a single share of my company stock. I agree with you 100% i already depend on the for my wages and benefits why risk my retirement on them.I am 100% in a target fund. I just feel u could make some serious cash this way.

son_of_sam · Answer

The division i work for the business is strong. That is the only thing i know never even seen the others. Thank you for taking the time to look tho. So do you think I would be nuts even if i was only looking for a dollar swing

wallstreetcappers · Answer

No you wouldnt be nuts, life is about taking risks and having the ability to do so knowing it might work and it might not.You have to make a choice based on all the information and what you are comfortable doing. So if you are ok with the potential of losing a large ammt and have some confidence in the company you work for then no you are not nuts.People and businesses take risks every day, I think most of us are saying the risk is too much for them , but you have do decide what you want and how much risk you are willing to take.

Would I be nuts if

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