For those blessed enough to be laid off effective Feb and are vested, like me, I recommend rolling over your 401k from Voya to another IRA this week to start maximizing your returns (I recommend T Rowe Price, but really any IRA will perform better than the limited Voya options). If you have a portion in EM stock purchased over time at a higher price than $40, like me, you will be tempted to cash it all out in the rollover and take the loss...but don't. Transfer those EM shares 'in kind' and hold on to them in your rollover IRA until the price rebounds to an acceptable level..which it will eventually. Hope this helps someone, good luck!
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Before any of you do anything in regards to your Savings Plan, talk with a Certified Financial Planner. CFPs are like a lawyer, board CERTIFIED, they never handle your fiduciary/monetary assets, they only advise. You will pay a CFP for their services to you, and it will be reasonable.
https://www.cfp.net/about-cfp-board
Typical “financial planners” in such situations as financial investment firms are really only interested in putting your money in their pocket.
OP,
Waiting to break even on a stock is usually a bad idea. While you're waiting for that day to come, you could be invested in something else that will give you what you're wanting. Investing is always forward-looking. Everyday is a new day and start today with what you've got. Get it invested doing something instead of waiting for a break even.
Company stock in a 401k is treated very differently from all of the other 401k investments. Special rules apply, such as NUA. Talk with an expert. Good luck!
I don't know about ASAP, but certainly planning an IRA rollover (Fidelity choices through a fiduciary).
Sometime later this year, but not rushing out.
Re: the ExxonMobil component of the 401K - why would I treat that any differently?
It will stay static (around 50-60) for very long time barring WWIII.
Get with a fiduciary for advise - as the good advice below.
Hah. Your a fool if you think exxonmobil is a long term hold.
You're also a fool if you think many other stocks (also with lows in March) would have only returned 8%. If you think there is more upside to exxonmobil, then keep holding, but the long term perception of this company is just plain garbage.
You obviously have no idea what net unrealized appreciation even is. NUA looks back on cost basis for tax treatment and is completely separate as to whether you continue to hold the stock long term.
Holding XOM stock is a risk, no doubt. But if someone sold at $38 as you advise, they would have missed a 42% gain based on current price in less than 6 months, over 5x your alternative in half the time. Selling at the recent 52 week low would have cost you a gain of almost 70%. As long as there is good diversification, holding XOM is not necessarily a bad choice, but realize any individual stock is much more risky than other choices like indexed funds.
Few investments hold the potential for massive gains, but a short-term oversold financially solid company offers exactly that. Could be more to come with EM, or could stall or drop. Oil and gas prices and demand far outweigh any internal decisions.
And this is why you don’t listen to people who have no clue about the subject matter.
XOM actually has a really good plan with great, low cost fund options. You will get more options in an IRA no doubt, but most of that is expensive junk that will blow up on you if you are just chasing performance with no sound plan. 401k plan providers have a level of fiduciary duty to their participants, whereas IRAs are the wild west! Not bad advice, but tread carefully and do your homework. And remember, if you are talking to "a guy" about your investments they will 100% want you to get out of the 401k so they can charge AUM on those assets regardless of what is best for you and provides the most legal protection to your investments.
The idea to hold exxonmobil stock for longterm to recoup losses is complete nonsense and bad financial advice. The idea being you have already taken the loss (unrealized) as it is $50 today. Why hold a stock that may have significant downside in the future and a subpar return when you can move your money into something more likely to return >8%.
- e. People would have been way better off today had they sold all their exxonmobil stock @$38 and moved it to nearly any other funds.
EM 401K has decent selections. However, Fidelity has some excellent retirement products based on no. years until retirement. They manage the rebalancing at a reasonable cost. Over two decades my retirement savings there have far outpaced any EM selection
@vfy+19yx2NXN Spot on!
I'll just add that expense ratios in the plan are notably low.
And I'll also echo that this isn't the place to come for financial advice (or frankly any advice).
That said, I think anyone checking in here should get a handle on their personal finance and the basics of investing. Good chance you're going to need look at ways to make a living outside of EM. Either way hope the odds are in your favor!
The funds in the XOM savings plan are excellent, and essentially free in terms of management fees. Extended Markets fund returned 32% last 4Qs. You can get more choices outside of the EM plan, but there is plenty of diversification within the plan. Unless required, I wouldn’t advise anyone to move outside the plan unless there are specific investment objectives that are not available. But, any good financial manager will likely put you in a few index funds, and those are already part of Voya’s offering.
Be absolutely sure of what you are doing before moving any money outside of the savings plan. Consult an expert if your savings amount to anything, especially if you hold any XOM stock in the plan.
Moving it triggers one time tax choices such as net unrealized appreciation. A mistake can be very costly, and simply rolling over can trigger critical decisions.
And don’t come here for investment advice, including mine. An expert consult doesn’t cost much and may save or make you lots. Good luck.