2007-02-13 09:39:11 · 4 answers · asked by PokerStar 2 in Business & Finance ➔ Investing
Principal has a lot of different investment products, but most do not include a self-directed brokerage feature. Check with your HR person, but most likely that feature won't be available.
2007-02-13 10:01:24 · answer #1 · answered by Contrarian 3 · 0⤊ 0⤋
It depends on how the 401k is set up. Generally these savings plans do not allow for the purchase and sale of stocks.
I have an IRA and own some stocks in the IRA. It was a real headache getting it set up.
The stocks I own pay dividends. But there is no automatic reinvesting. The dividends have to go into a transition fund. If I want to buy more of the same stock with those funds, I have to go through another transaction and pay the IRA manager a fee. It is not worth the aggravation.
2007-02-13 17:46:48 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
Probably not... most 401 "plans" are quite limited as to your investment choices...25 or 30 would be a lot by their standards, but it is easier to manage and safer for all the investors involved.
You could, however, trade in an IRA with E-trade or Fidelity ( that I know of ) and it wouldn't be a bad idea to have some Roth IRA's come retirement time....maybe cut down on your 401 contribution ( NOT below" company match") and do your own investing ...great experience!
P.S. If there is a real estate fund in that Principal plan...jump in...I help a friend with a 401...it's through Fidelity, mainly, but they do have one Principal fund. (Real Estate)..and it has been Terrific ( yes that's a capital "T")...It just creeps up, and creeps up,,,,no smashing gains, BUT it rarely ever drops !! Whenever the market goes bad....we throw almost everything into it ! ....and it creeps up...etc.
2007-02-13 18:53:45 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
Only if your 401K has individual stocks. Many have their own company stock in their 401K for a choice.
2007-02-14 01:05:18 · answer #4 · answered by Brick 5 · 0⤊ 0⤋