AgTalk Home
AgTalk Home
Search Forums | Classifieds | Skins | Language
You are logged in as a guest. ( logon | register )

Self directed IRA discussion made me think about my old 401K
View previous thread :: View next thread
   Forums List -> AgTalk CafeMessage format
 
ricefarmer14
Posted 11/13/2012 23:28 (#2696085)
Subject: Self directed IRA discussion made me think about my old 401K


East Arkansas
So I did some online searches this afternoon after reading a post about using 401K funds to purchase land and continue holding it in a self directed IRA to keep from paying taxes. So far ok, but a few minutes ago my wife and I were discussing this when I had the big idea that I would go into my old 401K statements and do a quick study on how these investments have really performed.

Let me say it was an eye opening experience to say the least. I had a corporate job until about 5 years ago when I started farming full time, I had 12 years of employment after college and saved money every month in my 401k like a good boy. Long story short when I quit to farm my last years statement showed a balance of $101,000.00 and since I kept the funds in my old employers plan the identical statement 5 years later but dated September 30, 2012 the balance was a little over $108,000.00- a whopping 1% return for 5 years! I also am pretty sure most of the money in the account was contributed by myself and my employer but am not sure. The account is invested in several different funds (Vanguard, Fidelity) and believe it is a good plan but the markets returns are terrible.

Contrast this to my farming operation...I have 50% equity in almost 200 acres of ground, have several paid for tractors and a lot of paid for equipment. I know it won't always be this good but can you believe a 1% return over 5 years!

I was taught to prudently invest in my future in a balanced mix of blah blah blah, do any of you guys feel this way. I think we have been scammed by Wall Street and traditional investing is a joke. I am going to keep moving on the self directed IRA to at least buy something I can enjoy and surely I can get some return and I will be able to know what I am investing in. A wise man told me once that he never made any real money on anything he didn't understand but he did very well on the things he invested in that he knew well.
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)