Poor Publix employee seeking 401k investment advice

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ralphboy
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Joined: Thu Apr 23, 2020 7:09 pm

Poor Publix employee seeking 401k investment advice

Post by ralphboy »

I'm a poor Publix employee looking for advice on how to invest a portion of my paycheck each week into my 401k smart plan. As a Publix employee I have 3 ways to get retirement:

1) A Profit Plan where Publix gives me stock
2) A 401k Smart Plan where I can contribute 1-30% of my eligible pay on a pretax basis up to the annual IRS limit into 12 investment fund options. For every dollar I save Publix matches up to 3% of my eliglble pay and may contribute up to a maximum of $750 per year. The maximum percent that I can invest in Publix stock is 25%. Voya handles the plan.
3) An Employee Stock Purchase Plan where I can purchase stock during four time periods each. Publix does not contribute to this plan.

I don't see myself making more than $20/ hour since I don't think I want to be a manager and I don't feel like I'm smart enough to have a better job so I'm thinking about sticking with Publix for as long as I can-- I have no idea when a good age to retire will be. I remember reading that I have to wait to be 59 1/2 so I can't be taxed but then again won't I be getting social security at age 62? So maybe that is a good age to retire from Publix?

I'm not sure how much money I'll have in my retirement... any ideas what I can expect to have?
I began working at Publix at age 26 and am now 33. So far I have roughly $13,900 in the profit plan, $9,600 in the 401k plan, and $3,000 that I spent on buying Publix stock via the Employee Stock Purchase Plan.

I am currently investing 6% (Roughly $36 a week) of my paycheck and plan on upping it by 1% every 6 months (Raise time). I don't think I'll invest more than 10%.

In addition to my retirement with Publix I have $28,000 invested with Raymond James. My investor has total control of what to buy.

Here are my options for the 401k Smart Plan:
1) Invesco Stable Value Trust Fund Class A3 (total annual expense ratio 0.39%)
2) Baird Aggregate Bond Fund (expense ratio 0.30% for insitutional shares and 0.55% for investor shares)
3) T. Rowe Price Value Fund I Class (expense information 0.64% (gross) and 0.63% (net) )
4) State Street S&P 500 Index Fund
5) T. Rowe Price Blue Chip Growth T2 Class (Annual Operating Expense ratio 0.45%)
6) State Street S&P MidCap Index
7) DFA US Small Cap I (Total Operating Expense Ratio 0.37%)
8) American EuroPacific Growth R6 (Fund expense ratio 0.49%)
9) Publix Stock
10) State Street Conservative Strategic Balance Fund -Class 1
11) State Street Moderate Strategic Balanced Fund -Class 1
12) State Street Aggressive Strategic Balance Fund -Class 1

I saw this piece of advice. Should I follow it? I can't save 15% of my salary though.
Start by saving 15% of your salary into three different mutual funds
1) A US total stock market index fund
2) An international total stock market index fund
3) A US total bond market index fund
Over time the three funds will grow at different rates, so once per year you'll adjust their amounts so that they're again equal.
Of the 12 investment options I have no idea which is a 1) A US total stock market index fund 2) An international total stock market index fund and 3) A US total bond market index fund

Any advice is appreciated, would be preferable if you specifically say which of the 12 investment fund options that I mentioned you think I should invest in and what %. THANKS SO MUCH!
-----------------------
UPDATE 4/24
Do you know what the expenses are for those five State Street funds?
I was confused on these but here is the info about those funds:

State Street S&P 500 Index Fund- https://publix401k.voya.com/static/epwe ... s/CHWZ.PDF
State Street S&P MidCap Index- https://publix401k.voya.com/static/epwe ... s/CHXH.PDF
State Street Conservative Strateg Bal -https://publix401k.voya.com/static/epwe ... s/CH5S.PDF
State Street Moderate Strateg Bal-
https://publix401k.voya.com/static/epwe ... s/CH5T.PDF
State Street Aggressive Strateg Bal-
https://publix401k.voya.com/static/epwe ... s/CH5U.PDF
What is your advisor at Raymond James investing in? What type of account is this? A traditional IRA, Roth IRA, individual brokerage account? How much do you pay them for a management fee?
I have had the account since 2014. I began with an initial investment of $25,000 and over time have added $4,000 (So 29k not 28k). I don't have a specified time when I add money to the account. I told my advisor that I want to save money for retirement. I don't know where I can find what type of account it is.

Pictures of my portfolio:

https://i.imgur.com/JgbB2W1.jpg

https://i.imgur.com/Dsr4Hf4.jpg

https://i.imgur.com/nTmnyRS.jpg

https://i.imgur.com/qyDRdby.jpg

Fees for 12 months:

https://i.imgur.com/y7LH4sC.jpg

Do you have any debt? If so what types, amounts and interest rates?
No
What is your tax bracket, both federal and state? What is your tax filing status?
I have my taxes but I'm having trouble locating this info. My "marginal tax rate" is 12.00 and "effective tax rate" 10.68. My tax filing status is single and I live in Florida. My income is between $25,000-$30,000.
What asset allocation (stock/bond mix, and domestic/international stock mix) do you think that you want to aim for?
No idea, since I don't make a lot of money I want to have at least 1/2 of my portfolio invested in things that can give me the biggest potential to make the most amount of money. The other 1/2 I want to have less risk just in case I lose 1/2 of my investment in the high risk things. I am open to advice on this though.
If you put in 3% of your gross pay, Publix puts in 3% to match, up to $750 per year?
I forgot to add- For every dollar you save in the SMART plan, up to 3% of your eligible pay, Publix may contribute 50 cents to your account — up to a maximum of $750 a year — if you’re eligible

This is how it works based on my salary.
My weekly check is $587 (Before all taxes) and if I invest 3% into my 401k that would be $17 a week. $17 x 52 weeks = $884 invested in a year. Publix would match half of that which would be $442
Now if I invest 6% that would be $35 a week. $35 x 52 weeks = $1,820. Even though I invested more, Publix will still only give me $442 (and not half of 1,820 or the maximum $750)
Publix shares are not traded on any stock market. Are you permitted to sell the shares that Publix gives to you? How would that work?
Publix is a private company. Only employees can buy stock. I can sell my shares back to Publix but I think I get penalized.
Suddenly on the loading dock several of the 50+ year olds started whooping and hollering. My friend asked the supervisor what was going on, and she told him Publix had just released the updated value of the stock, (Publix is privately held), and some more of the dock workers had just become millionaires. "Some more". This was well over 10 years ago.
I know of 2 employees who both retired millionaires one was a manager making $60k (plus bonuses I think) and the other was a manager that stepped down (Not sure for how long but he was also making the same amount. He also bought Publix stock. The person had 1.5 million and the other who bought stock had 2.5 million). Both had 35-38 years with Publix (Started in 1978). From what I have heard Publix was a lot better company back when the founder Mr. George was alive. According to a person on reddit he said the current CEO of Publix said at a conference that, "Publix is not making millionaires out of grocery people anymore (I assume that means the position "grocery stock clerk" which tops out at $17) ."

Publix stock splits:
Stock Splits
Record Date Split
07/01/2006 5 for 1
07/01/1992 5 for 1
02/25/1984 10 for 1
02/25/1969 4 for 1
I have known many Publix employees over the years, and not one of them has ever regretted acquiring the maximum amount of Publix stock that they could.
I was doing between 3 to 10% (Adjusted the amount many times) of my pay check each week in 100% Publix stock for a few years but in 2020 they changed it so the max amount we can do is 25%.
I don't think you mentioned your credit use or housing financial situation.
Not sure what you mean by "credit use" but I am debt free and I use my credit card all of the time and pay the full amount each month. From what I remember a few years ago my credit score was in the high 700s. I rent a 1 bedroom condo from someone and pay $625 a month (I was paying less but after 5 years they gave me a rent raise, so hopefully I'll be at $625 for awhile).
I would find a way to slowly sell the Publix stock they give you (you don’t want to wind up with a big tax bill, so spread it out over a few years) and contribute that to a Traditional or Roth IRA.
I can initiate a rollover of Publix stock to a Rollover IRA.
-----------------------------------------------------------------------------------------------------------------------------
Update 4/24(2)

My 401k consists of 83.75% Publix stock. So I think my future contributions are going to be:

60% S&P 500
20% Baird
20% American Funds Europacific Growth R6 (RERGX)

What do you think?

My 401k looks like this:
Fund Name..................................................................Amount Available
T. Rowe Price Blue Chip Growth T2 Class...............................$740.54
Publix Stock................................................................$8,063.13
Cash Component of Publix Stock.........................................$88.13
State Street Moderate Strateg Bal.........................................$735.53
Total:............................................................................$9,627.33

I have the option to reallocate the balances for the T. Rowe Price Blue Chip Growth T2 Class and State Street Moderate Strateg Bal. I also have the option to transfer balances out of the Publix Stock Fund into other investment options via a Fund Transfer.
-----------------------------------------------------------------------------------------------------------------------------
Update 4/24(3)

I went ahead and changed my weekly contributions from 6% to 10%. I also reallocated the balances of the T Rowe Price Blue Chip and State Street Moderate Strateg Bal and did 100% of that in the S&P 500. I don't know if doing a fund transfer for the Publix stock will give me a penalty so I left it alone.

I also set my 401k to:
60% S&P 500
20% Baird
20% American Funds Europacific Growth R6 (RERGX)

I'll be back to look at this topic in a few days because I need to chill out for a bit.
Last edited by ralphboy on Fri Apr 24, 2020 10:31 pm, edited 10 times in total.
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amp
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Joined: Sun May 04, 2008 9:40 am

Re: Poor Publix employee seeking 401k investment advice

Post by amp »

It seems that your 401K options have fairly high expense ratios. Do you know what the expenses are for those five State Street funds? If it's not too expensive, the State St. S&P 500 fund would be a good option for a U.S. stock market index fund. Another possibility is to only contribute enough to the 401K to get the employer match. Then instead of contributing the rest of the money to your 401K, open an IRA with a low-cost provider instead. Fidelity, Vanguard, and Schwab are the three firms that are usually suggested. With the IRA, you will be able to invest in any number of low cost options: See the three-fund portfolio wiki page: https://www.bogleheads.org/wiki/Three-f ... hree_funds. Sections 1.2 and 1.3 show some different options.

Generally speaking however, one should look at all your investments together as a whole. So the suggestion to invest 1/3 in three different funds is a good one, but it should be implemented across all your accounts, both taxable and tax-advantaged. Therefore, it's important that you get a handle on exactly what your advisor at Raymond James is investing in. Unfortunately, they don't have a great reputation on this board. You can search the forum to get some stories from other people who have invested with them: https://www.google.com/search?sitesearc ... mond+james. You may be better off taking control of that account and moving it to one of the firms I mentioned above.
motorcyclesarecool
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Re: Poor Publix employee seeking 401k investment advice

Post by motorcyclesarecool »

So that I understand the match on your 401(k), I have a question: if you put in 3% of your gross pay, Publix puts in 3% to match, up to $750 per year?

Another question, if I recall correctly, Publix shares are not traded on any stock market. Are you permitted to sell the shares that Publix gives to you? How would that work?

The money at Raymond James, is it in some sort of tax-advantaged retirement account, or is it a normal, taxable investment account?

In your shoes, I would invest the 401(k) money in the S&P 500 and Stable Value funds. I would find a way to slowly sell the Publix stock they give you (you don’t want to wind up with a big tax bill, so spread it out over a few years) and contribute that to a Traditional or Roth IRA. If you want to do a classic Bogleheads three-fund portfolio, you could keep your allocation to International stocks there, because Publix doesn’t seem to offer that in their 401(k) plan.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.
student
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Re: Poor Publix employee seeking 401k investment advice

Post by student »

Personally I would
1) use Baird Aggregate Bond Fund for fixed income and State Street S&P 500 Index Fund for stock and forgo international in the 401k plan,
2) not use the Employee Stock Purchase Plan,
3) move away from RJ and buy a target date or life strategy fund at Vanguard (but check how much capital gain you have and what it is tax rate for it), and
4) read more about investing and this board.

Revisit the plan after 1-2 years. I think the advice of putting away 15% of your salary is a good one.
Last edited by student on Fri Apr 24, 2020 7:20 am, edited 2 times in total.
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

amp wrote: Fri Apr 24, 2020 5:00 am It seems that your 401K options have fairly high expense ratios. Do you know what the expenses are for those five State Street funds? If it's not too expensive, the State St. S&P 500 fund would be a good option for a U.S. stock market index fund.
I will guess it's SVSPX and 0.16%. If so use it,

That's what this document says. Not sure if it's 100% up to date or correct:
https://sproutcapitalmanagement.com/com ... mart-plan/
amp wrote: Fri Apr 24, 2020 5:00 am Another possibility is to only contribute enough to the 401K to get the employer match. Then instead of contributing the rest of the money to your 401K, open an IRA with a low-cost provider instead. Fidelity, Vanguard, and Schwab are the three firms that are usually suggested. With the IRA, you will be able to invest in any number of low cost options: See the three-fund portfolio wiki page: https://www.bogleheads.org/wiki/Three-f ... hree_funds. Sections 1.2 and 1.3 show some different options.
That's a good idea. Move your Raymond James funds to one of those. Or more accurately, open an account at Schwab, Fidelity or Vanguard and have them liquidate the holdings and transfer cash in. It'll probably cost a $95 or so account closing fee from RJ. You could ask Schwab, Fidelity or Vanguard if they could reimburse you.

Raymond James is just too costly to use.
amp wrote: Fri Apr 24, 2020 5:00 am Generally speaking however, one should look at all your investments together as a whole. So the suggestion to invest 1/3 in three different funds is a good one, but it should be implemented across all your accounts, both taxable and tax-advantaged. Therefore, it's important that you get a handle on exactly what your advisor at Raymond James is investing in. Unfortunately, they don't have a great reputation on this board. You can search the forum to get some stories from other people who have invested with them: https://www.google.com/search?sitesearc ... mond+james. You may be better off taking control of that account and moving it to one of the firms I mentioned above.
100% agree.
ralphboy wrote: Thu Apr 23, 2020 7:29 pm
Of the 12 investment options I have no idea which is a 1) A US total stock market index fund 2) An international total stock market index fund and 3) A US total bond market index fund

Any advice is appreciated, would be preferable if you specifically say which of the 12 investment fund options that I mentioned you think I should invest in and what %. THANKS SO MUCH!
1) A US total stock market index fund
Use State Street S&P 500 Index Fund.

2) An international total stock market index fund
Use VTIAX (or equivalent) from the Raymond James money you transfer to Schwab, Fidelity or Vanguard
[American EuroPacific Growth is decent but a little pricey at 0.49%]

3) A US total bond market index fund
Use Baird Aggregate Bond Fund or Invesco Stable Value Trust Fund and/or a Total Bond fund in Raymond James money you transfer to Schwab, Fidelity or Vanguard.

The Stable value fund might yield more, but the Aggregate Bond Fund might go up and down a little more. It'll more likely go up when rates come down in bad economic times, and can be used to rebalance into stocks.

Actually, you could use a long term treasury fund too. They go up and down more than Total Bond (reacting to interest rate changes) but they are the best to use for rebalancing. Total bond is simpler because you will need to reduce duration as you age if you use Long Term Treasuries.
viewtopic.php?t=287627

You need an asset allocation. Something like:

75% US stocks
15% Intl stocks
10% bonds

Not everyone uses Intl stocks. We have long contentious debates about it. You can hold anywhere from 0% to 50% of stocks in it. Once you decide, don't change.

Most target date retirement funds at your age are 90% equities. I know it's hard to stomach losses when you don't have much to lose, but I encourage you to just contribute as much as you can and not fret about the usual ups and downs. You can increase safe assets as you get older.

If you stay with Publix, be wary of holding too much of their stock. You don't want a job loss and poor Publix stock performance at the same time.
FI4LIFE
Posts: 548
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Re: Poor Publix employee seeking 401k investment advice

Post by FI4LIFE »

The previous posts have some great advice. I second the suggestion to take the employer match then open a ROTH IRA with fidelity or vanguard.

Fire your Raymond James investor (unless you want to work an extra several years to pay his/her fees). If you want to keep them, limit the funds you send to that account and don't let them talk you into moving accounts to their firm.

Lastly, I don't know why you are selling yourself short with your career. It is fine to accept a low to moderately low stress job in exchange for low pay, but in reading your post it seems you are well educated, intelligent and organized. If you don't want more, that is fine, but don't tell yourself that you are not smart enough. You are holding others in higher regard than they likely deserve. There are plenty of people earning good money with less smarts than you possess.

There are simple compound interest calculators online you can play with. Many here like FIRECALC. It allows you to change several inputs. Based on a quick guestimate, with few life changes you can anticipate somewhere around $500,000 at 60 years old. Based on the 4% rule of thumb, that would safely provide a consistent $20000/yr of income for 30 years, adjusting for inflation. You would be able to withdraw more, early in retirement, and less once social security kicks in.

Edit:. I know nothing about Publix stock and input a 7% rate of return with current funds plus a 6% yearly contribution using rough numbers.
Last edited by FI4LIFE on Tue Apr 28, 2020 5:56 am, edited 2 times in total.
TNWoods
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Re: Poor Publix employee seeking 401k investment advice

Post by TNWoods »

My advice is based upon knowing several Publix employees.

One of them was shooting some video at a distribution warehouse for a training film. Suddenly on the loading dock several of the 50+ year olds started whooping and hollering. My friend asked the supervisor what was going on, and she told him Publix had just released the updated value of the stock, (Publix is privately held), and some more of the dock workers had just become millionaires. "Some more". This was well over 10 years ago.

Remember, "generally speaking", index funds are the way to go. This instance is not a "general instance". This is a specific instance.

I have known many Publix employees over the years, and not one of them has ever regretted acquiring the maximum amount of Publix stock that they could.

I would very strongly recommend that you maximize your Publix stock acquisition, and use this forum for everything else, and never mention your Publix stock again, because you will be eviscerated if you make that choice. I am about to be eviscerated for this post.

"Generally speaking", men are stronger than women. This does not mean that in a "specific instance" the man is stronger than the woman. Joe Biden would lose an arm wrestling competition to Venus Williams.

TNWoods
Last edited by TNWoods on Fri Apr 24, 2020 7:25 am, edited 1 time in total.
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

TNWoods wrote: Fri Apr 24, 2020 6:53 am
I would very strongly recommend that you maximize your Publix stock acquisition, and use this forum for everything else, and never mention your Publix stock again, because you will be eviscerated if you make that choice. I am about to be eviscerated for this post.
I don't know about Publix specifically and was just commenting based on a company I worked at for a short time that'd been acquired in bankruptcy. There'd been a culture of buying company stock and many of the people I worked with were holdovers from before it'd gone under. They were quite surprised by it all. Again, I don't know Publix specifically.
boglewill34
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Re: Poor Publix employee seeking 401k investment advice

Post by boglewill34 »

ralphboy wrote: Thu Apr 23, 2020 7:29 pm I don't see myself making more than $20/ hour since I don't think I want to be a manager and I don't feel like I'm smart enough to have a better job so I'm thinking about sticking with Publix for as long as I can
Not at all saying that what you are currently doing isn't worthwhile and a significant contribution to everyone's wellbeing, especially apparent during these times. Nor that you should think you need to go into management, I similarly have chosen to likely forgo additional income because of my reticence to go into management.

What I am saying is that you shouldn't sell yourself short by saying "not smart enough" in any context. That may not mean you want a different job, but may mean you want to pursue something outside of work that requires smarts, talent, passion or simply something fun. And I'm sure you bring a lot of that value with you to work as well.

You've done very well with your saving and choices. And your posts here are very well written, concise and clear. In other words, you're demonstrating qualities of a smart person!

I don't think you mentioned your credit use or housing financial situation. If these are in order, you are in great shape. Hopefully you are also considering your current tax situation, there are very likely advantages you have, like saver's credit and being in a low tax bracket that can serve to maximize your financial position. Maybe you can post your effective and marginal tax rates and see if changing something here or there can put you in a lower marginal bracket.
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ruralavalon
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Re: Poor Publix employee seeking 401k investment advice

Post by ruralavalon »

Welcome to the forum :).

It's great to see that you started young at investing. You seem to be doing pretty well. Keep your rate of contributions as high as you can comfortably sustain.

I don't see any drawback to holding Publix stock or working at Publix.

ralphboy wrote: Thu Apr 23, 2020 7:29 pm I'm a poor Publix employee looking for advice on how to invest a portion of my paycheck each week into my 401k smart plan. As a Publix employee I have 3 ways to get retirement:

1) A Profit Plan where Publix gives me stock
2) A 401k Smart Plan where I can contribute 1-30% of my eligible pay on a pretax basis up to the annual IRS limit into 12 investment fund options. For every dollar I save Publix matches up to 3% of my eliglble pay and may contribute up to a maximum of $750 per year. The maximum percent that I can invest in Publix stock is 25%. Voya handles the plan.
3) An Employee Stock Purchase Plan where I can purchase stock during four time periods each. Publix does not contribute to this plan.

I don't see myself making more than $20/ hour since I don't think I want to be a manager and I don't feel like I'm smart enough to have a better job so I'm thinking about sticking with Publix for as long as I can-- I have no idea when a good age to retire will be. I remember reading that I have to wait to be 59 1/2 so I can't be taxed but then again won't I be getting social security at age 62? So maybe that is a good age to retire from Publix?

I'm not sure how much money I'll have in my retirement... any ideas what I can expect to have?
I began working at Publix at age 26 and am now 33. So far I have roughly $13,900 in the profit plan, $9,600 in the 401k plan, and $3,000 that I spent on buying Publix stock via the Employee Stock Purchase Plan.
Here are some calculators you can use to estimate the range of results with different levels of contributions:
1) www.firecalc.com; and
2) www.i-orp.com.

ralphboy wrote: Thu Apr 23, 2020 7:29 pmI am currently investing 6% (Roughly $36 a week) of my paycheck and plan on upping it by 1% every 6 months (Raise time). I don't think I'll invest more than 10%.
That is a very good idea to increase your 401k contributions periodically with each raise.

ralphboy wrote: Thu Apr 23, 2020 7:29 pmIn addition to my retirement with Publix I have $28,000 invested with Raymond James. My investor has total control of what to buy.
What type of account is this? A traditional IRA, Roth IRA, individual brokerage account? How much do you pay them for a management fee?

What mutual funds or stocks do you have in this account? Please give names and ticker symbols, with expense ratios for the mutual funds.

How much do you contribute annually to this account?

Do you have any debt? If so what types, amounts and interest rates?

What is your tax bracket, both federal and state? What is your tax filing status?

What asset allocation (stock/bond mix, and domestic/international stock mix) do you think that you want to aim for?

Please see this for information needed and format: "Asking Portfolio Questions". Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

It is often better to coordinate investments among all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately.


Three-fund portfolio.
ralphboy wrote: Thu Apr 23, 2020 7:29 pmI saw this piece of advice. Should I follow it? I can't save 15% of my salary though.
Start by saving 15% of your salary into three different mutual funds
1) A US total stock market index fund
2) An international total stock market index fund
3) A US total bond market index fund
Over time the three funds will grow at different rates, so once per year you'll adjust their amounts so that they're again equal.
In my opinion that is very good advice. Please see:
1) Wiki article "Three-fund portfolio";
2) Forum discussion, "The Three-Fund Portfolio"; and
3) Taylor Larimore post, "Articles recommending the three-fund portfolio".


Fund selection.
There are some good funds offered in the Publix 401k Smart Plan. You are fortunate.
ralphboy wrote: Thu Apr 23, 2020 7:29 pmHere are my options for the 401k Smart Plan:
1) Invesco Stable Value Trust Fund Class A3 (total annual expense ratio 0.39%)
2) Baird Aggregate Bond Fund (expense ratio 0.30% for insitutional shares and 0.55% for investor shares)
3) T. Rowe Price Value Fund I Class (expense information 0.64% (gross) and 0.63% (net) )
4) State Street S&P 500 Index Fund
5) T. Rowe Price Blue Chip Growth T2 Class (Annual Operating Expense ratio 0.45%)
6) State Street S&P MidCap Index
7) DFA US Small Cap I (Total Operating Expense Ratio 0.37%)
8) American EuroPacific Growth R6 (Fund expense ratio 0.49%)
9) Publix Stock
10) State Street Conservative Strategic Balance Fund -Class 1
11) State Street Moderate Strategic Balanced Fund -Class 1
12) State Street Aggressive Strategic Balance Fund -Class 1
ralphboy wrote: Thu Apr 23, 2020 7:29 pmOf the 12 investment options I have no idea which is a 1) A US total stock market index fund 2) An international total stock market index fund and 3) A US total bond market index fund

Any advice is appreciated, would be preferable if you specifically say which of the 12 investment fund options that I mentioned you think I should invest in and what %. THANKS SO MUCH!
In selecting funds strive for a combination of both broad diversification (to reduce risk) and low expense ratios (to increase your net return).

In my opinion the better funds to consider using in the Publix 401k Smart Plan are:
1) State Street S&P 500 Index N ( > 80% of U.S. stock market) (SVSPX) ER 0.16%;
2) American Funds Europacific Growth R6 (both developed and emerging markets) (RERGX) ER 0.49%; and
3) Baird Aggregate Bond Institutional (intermediate-term investment-grade bonds) (BAGIX) ER 0.30%.


U.S. stocks
State Street S&P 500 Index N (SVSPX) ER 0.16% is very diversified and has a low expense ratio.

"In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio." Wiki article, Three-fund portfolio, "Other considerations".

In my opinion in a plan that lacks a total stock market index fund, a S&P 500 index fund is good enough by itself for a domestic stock allocation. A S&P 500 index fund covers more than 80% of the U.S. stock market, investing in stocks of selected large-cap and mid-cap U.S. companies. In the 28 years since the creation of the first total stock market index fund the performance (total return with dividends reinvested) of the two types of funds has been almost identical. Morningstar, "growth of $10k" graph (1992 – 2020), VTSAX vs VFIAX. So it seems that adding a little in mid/small cap stocks trying to mimic the holdings of a total stock market fund has historically made little difference in performance.

See also:
1) Allan Roth, CBS Moneywatch (02/03/2010), "John C. Bogle on the S&P 500 vs. the Total Stock Market"; and
2) Wall Street Physician (01/17/2019), "Should You Invest in the S&P 500 or the Total Stock Market?".


International stocks.
Although actively managed American Funds Europacific Growth R6 (RERGX) ER 0.49% is a good international stock fund. It is diversified investing in stocks of companies in both developed and emerging markets, and the expense ratio is relatively modest. Historically it's performance has compared well to a total international stock index fund. Portfolio Visualizer, 1997-2020.


Bonds.
Although actively managed Baird Aggregate Bond Institutional (BAGIX) ER 0.30% is a good intermediate-term (effective duration = 5.69 years) investment-grade (credit quality = A) bond fund. It is diversified (22% government bonds, 38% corporate bonds, 36% securitized), with a fairly low expense ratio. Historically it has performed well compared to a total bond market index fund. Portfolio Visualizer, 2000-2020.



Asset allocation.
I suggest about 20% in bonds or other fixed income investments (like CDs, savings accounts, money market fund). This is expected to substantially reduce portfolio volatility (risk), with only a relatively modest decrease in portfolio return. Graph, "An Efficient Frontier: the power of diversification". Please see:
1) Wiki article Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk";
2) Wiki article, "Asset allocation"; and
3) Morningstar (8/20/2019), "The Best Diversifiers for Your Equity Portfolio".

I suggest around 20 - 30% of stocks in international stocks. Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities". Historically, allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6). (You can find lots of debate here on international allocation, opinions ranging all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box, upper right, this page).

That works out to about 20% bonds, 20% international stocks, and 60% domestic stocks. Asset allocation is a very personal decision. You must decide on an allocation that is comfortable for you based on your own ability, willingness and need to take risk.




Education.
A quick education for a beginning investor is Dr. Bernstein's free short on-line book, "If You Can". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.

To go beyond the most basic I suggest that you also read one or two books on investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom".
Last edited by ruralavalon on Fri Apr 24, 2020 11:12 am, edited 4 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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Re: Poor Publix employee seeking 401k investment advice

Post by ruralavalon »

typical.investor wrote: Fri Apr 24, 2020 7:05 am
TNWoods wrote: Fri Apr 24, 2020 6:53 am
I would very strongly recommend that you maximize your Publix stock acquisition, and use this forum for everything else, and never mention your Publix stock again, because you will be eviscerated if you make that choice. I am about to be eviscerated for this post.
I don't know about Publix specifically and was just commenting based on a company I worked at for a short time that'd been acquired in bankruptcy. There'd been a culture of buying company stock and many of the people I worked with were holdovers from before it'd gone under. They were quite surprised by it all. Again, I don't know Publix specifically.
Please see https://www.publixstockholder.com

I see no problem with holding Publix stock. But be diversified, buy mutual funds as well.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
iraconfused
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Re: Poor Publix employee seeking 401k investment advice

Post by iraconfused »

I'm not sure how much money I'll have in my retirement... any ideas what I can expect to have?
I began working at Publix at age 26 and am now 33. So far I have roughly $13,900 in the profit plan, $9,600 in the 401k plan, and $3,000 that I spent on buying Publix stock via the Employee Stock Purchase Plan.

Does Publix give employees stock?
One of the nice perks of working at Publix is that employees get handed free company stock pretty soon after coming on board. ... Shares of Publix stock are not traded publicly, but the company estimated earlier this month that each share is worth $40.15 and it pays a quarterly dividend of roughly 22 cents per share.Sep 27, 2017

How much stock do Publix employees receive?
Just as the word "gift" implies, employees are given shares of Publix common stock at no cost, accumulating, on the average, about 3.5 shares per week, according to one former employee. "It's roughly eight percent of your annual pay," the employee said.Mar 25, 2016
TNWoods wrote: Fri Apr 24, 2020 6:53 am My advice is based upon knowing several Publix employees.

One of them was shooting some video at a distribution warehouse for a training film. Suddenly on the loading dock several of the 50+ year olds started whooping and hollering. My friend asked the supervisor what was going on, and she told him Publix had just released the updated value of the stock, (Publix is privately held), and some more of the dock workers had just become millionaires. "Some more". This was well over 10 years ago.

Remember, "generally speaking", index funds are the way to go. This instance is not a "general instance". This is a specific instance.

I have known many Publix employees over the years, and not one of them has ever regretted acquiring the maximum amount of Publix stock that they could.

I would very strongly recommend that you maximize your Publix stock acquisition, and use this forum for everything else, and never mention your Publix stock again, because you will be eviscerated if you make that choice. I am about to be eviscerated for this post.

"Generally speaking", men are stronger than women. This does not mean that in a "specific instance" the man is stronger than the woman. Joe Biden would lose an arm wrestling competition to Venus Williams.

TNWoods
You get free company stock every week or year. You are good there. For 401k money SS S&P 500 and Baird Aggregate Bond Institutional . Split it 50/50 or whatever. I would still buy your stock in Employee Stock Purchase Plan. Your RJ money I would move to vanguard. I assume this is taxable account so most BH would be Vanguard Total Stock or Total International
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dmcmahon
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Re: Poor Publix employee seeking 401k investment advice

Post by dmcmahon »

As a side note, I've got family members that also have choices like this in their 401k plans. Someone needs to send a memo to whoever makes decisions regarding company plans to switch to simpler, cleaner options. It's not like 401k giant Fidelity doesn't offer a lot of excellent plans.

I sometimes wonder if the generally-good TSP should be made broadly available so that non-federal employees aren't stuck in plans like the OPs.
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

First post updated
epictetus
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Re: Poor Publix employee seeking 401k investment advice

Post by epictetus »

i would encourage you to consider looking into educational options you might be interested in such as technical school/training, a community college, etc.

your post is very well laid out and very thoughtful. i think you are selling yourself short in thinking you don't have other options.

if you don't want other options that is fine. but if you would like to have other options but don't think you have the mental horsepower for other options i think you are selling yourself short.
Focus on what you can control
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

ralphboy wrote: Thu Apr 23, 2020 7:29 pm State Street S&P 500 Index Fund- https://publix401k.voya.com/static/epwe ... s/CHWZ.PDF
It doesn't actually say the ER. It does say class N which I think is SVSPX and 0.16%
What asset allocation (stock/bond mix, and domestic/international stock mix) do you think that you want to aim for?
No idea, since I don't make a lot of money I want to have at least 1/2 of my portfolio invested in things that can give me the biggest potential to make the most amount of money. The other 1/2 I want to have less risk just in case I lose 1/2 of my investment in the high risk things. I am open to advice on this though. [/quote]

I'll be honest and say I think that (50% stock/50% bond) is a good target for when you are older and closer to retirement. You won't get much earnings on the 1/2 of your investment that you keep out of the stock market. Bond yields are just too low today.

If your job is relatively stable, you are not likely to need to spend your investments anytime soon. The market just dropped 25% and recovered a little, so it's not a good time to be selling stocks. Most who need money now are selling bonds and waiting for the economy to improve.

So if you are, for example -and this is taken from target date funds that study allocations and how to get people the most money in retirement without taking too much risk- 90% stocks and 10% bonds, then as you become 40 or 45 or 50 or 55 (depending on the person) you start increasing your safe allocation until you reach 50% in bonds before you retire.

You have a lot of time until then to figure out what the best allocation is.

I encourage to invest as much as you can in the US (and global) economy. Don't be scared if the value goes up and down. It will. Just have a plan to increase safe assets as you approach your need to sell them in order to spend money for living. That will help ensure you don't need to sell at a low.

Raymond James

The fees are too high. Simply too high. You are not getting good value and the funds they have chosen are not going to make up their fees.

It looks like you are 83% stocks now. If you haven't been uncomfortable in the downturn with 83% stocks, I would keep your allocation at 85-90%.
I don't know where I can find what type of account it is.
It should say on your statement. Generally it says on the very top if it is an IRA. There is my name, account number and date. It says IRA by my name. For my taxable account, there is only my name. I looked at the RA site to find their example statement, but it didn't show any IRAs.

I am wondering if this is a taxable account. I see municipal bonds which generally go in taxable accounts. You need to confirm that because you have to move to the same type of account when you move it. And please do yourself a favor and move it to Fidelity, Vanguard or Schwab. If it's taxable, I'd recommend Vanguard unless you would be comfortable using ETFs.

It's not that difficult to switch to Vanguard, Schwab or Fidelity. You don't really have to tell your RJ advisor before you do. They will just try to talk you out of it.

I try to look up your exact percent of international later but it doesn't look too high.

I agree with everyone that you should pursue management. Even if the number of positions at Publix is limited, do what you can to get as much training as you can. Talk to the manager. Learn what you can. Then if you have to, you can always seek a management position at another company. Publix is a good store. I've shopped there in Florida and the toilets are clean. It's a quality store. I have no doubt you can use it's good standing to your advantage if you decide to apply elsewhere.
boglewill34
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Re: Poor Publix employee seeking 401k investment advice

Post by boglewill34 »

I can barely see some of the screen shots, but it looks like you’re paying like $700 or more in fees at RJ for the $25k portfolio. A simple 2-3 fund at Vanguard would be like $25 a year instead.

A person making low income shouldn’t be in munis either, makes no sense. No knock on the OP, that’s on RJ.

OP, truly great job saving and staying out of debt.
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Re: Poor Publix employee seeking 401k investment advice

Post by sfmurph »

Hi and welcome to the forum. There's a lot to think about when it comes to saving (for retirement and anything else). You've come to a very good place! Welcome again.

A basic thing that matters a lot is Investment Costs Matter! That's why a number of folks here asked you what the ER (Expense Ratio) of your 401(k) funds is. Almost always, the lower is better, but the 401(k) companies sometimes try to hide those numbers. In addition, I think that Raymond James is also charging a percentage on top of the ER in the funds. You should strongly consider moving that brokerage to someplace like Fidelity, Charles Schwab or Vanguard.

You say that you have 3 ways to prepare for retirement, but I think there are 5 in your case:
ralphboy wrote: Thu Apr 23, 2020 7:29 pm I'm a poor Publix employee looking for advice on how to invest a portion of my paycheck each week into my 401k smart plan. As a Publix employee I have 3 ways to get retirement:

1) A Profit Plan where Publix gives me stock
2) A 401k Smart Plan where I can contribute 1-30% of my eligible pay on a pretax basis up to the annual IRS limit into 12 investment fund options. For every dollar I save Publix matches up to 3% of my eliglble pay and may contribute up to a maximum of $750 per year. The maximum percent that I can invest in Publix stock is 25%. Voya handles the plan.
3) An Employee Stock Purchase Plan where I can purchase stock during four time periods each. Publix does not contribute to this plan.
Plus
4) Social Security
5) Raymond James brokerage

It's important to think about all of these when you think about your savings. The advice you saw about 3 different funds is really good advice. In your case, you need to think about the Publix stock too. The percentage you save is really a separate thing, but you should be considering the money that you're putting into the Publix ESPP, the 401(k) and the Raymond James brokerage account all as part of your savings rate.

You've managed to save about $60,000. Wow! That's quite an accomplishment!

$35000 Raymond James brokerage
$16000 Publix stock
$10000 401(k)

Now, thinking about this $60,000, splitting it 50/50 between biggest potential to make the most amount of money and less risk, you would want to have $30,000 in stocks (for growth) and $30,000 in bonds (for less risk). You already have $16,000 in one stock, so another $14,000 would go into a stock fund, and $25,000 into a bond fund.

To do this, you'd put all of your 401(k) investment into the Baird Aggregate Bond Fund, then in your brokerage, you would buy $15,000 of a bond fund, and $14,000 into a stock fund.

I looked briefly at the funds that Raymond James has you invested in, and they're really not appropriate for you. Social Media and Internet focus? And the high risk Muni fund is really not right for someone with your income.
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

If I go to Fidelity, Charles Schwab or Vanguard would they be able to get all of the money that I have I have in Publix stock, profit plan, smart 401k, and Raymond James? Or do I have contact each of those places and get the money and then give it to them? (I'm not familiar with how to get my money out)

Also, am I able to set it up where my money comes out of my paycheck each week and instead of it being handled by Voya; I can have it go to my Fidelity, Charles Schwab or Vanguard account?
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

ralphboy wrote: Fri Apr 24, 2020 6:58 pm If I go to Fidelity, Charles Schwab or Vanguard would they be able to get all of the money that I have I have in Publix stock, profit plan, smart 401k, and Raymond James? Or do I have contact each of those places and get the money and then give it to them? (I'm not familiar with how to get my money out)

Also, am I able to set it up where my money comes out of my paycheck each week and instead of it being handled by Voya; I can have it go to my Fidelity, Charles Schwab or Vanguard account?
The Voya 401k through work stays as it is.

Only the RJ money moves. There is a form online (to open an account at Vanguard for instance) and you fill it out and they will move the money or funds depending on what you request.

Before you move, we have to look at unrealized capital gains. You probably won’t have to pay taxes on long term gains since your income is under $40,000. A little might be short term gains (held less than a year) at I think 12% for your bracket.

This is perhaps a fine point too, but the market is moving up and down a lot. If you are transferring cash, the holdings at RJ will get sold, and the money will be in cash for a few days while the money transfers. RJ drags their feet a bit too I think. If the market moves up a lot in that time, you will miss out.

Generally I prefer moving shares instead of cash, but you don’t want to have to pay to sell them at Vanguard.

It’s kinda your call on when to do it. The sooner the better I think, but I also wouldn’t like to move right now.

Schwab and Fidelity both have better support than Vanguard, but if your account is taxable, Vanguard has slightly better funds. Any of them are much, much, much better than RJ so the hassle to move will be worth it.
Last edited by typical.investor on Fri Apr 24, 2020 7:16 pm, edited 2 times in total.
Absolute
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Re: Poor Publix employee seeking 401k investment advice

Post by Absolute »

Lastly, I don't know why you are selling yourself short with your career. It is fine to accept a low to moderately low stress job in exchange for low pay, but in reading your post it seems you are well educated, intelligent and organized. If you don't want more, that is fine, but don't tell yourself that you are not smart enough. You are holding others in higher regard than they likely deserve. There are plenty of people earning good money with less smarts than you possess.
Well said.
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Re: Poor Publix employee seeking 401k investment advice

Post by JD2775 »

epictetus wrote: Fri Apr 24, 2020 5:51 pm i would encourage you to consider looking into educational options you might be interested in such as technical school/training, a community college, etc.

your post is very well laid out and very thoughtful. i think you are selling yourself short in thinking you don't have other options.

if you don't want other options that is fine. but if you would like to have other options but don't think you have the mental horsepower for other options i think you are selling yourself short.
^ This. Your OP flies in the face of your apparent feeling of self-worth. Don't sell yourself short.
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

JD2775 wrote: Fri Apr 24, 2020 7:11 pm
epictetus wrote: Fri Apr 24, 2020 5:51 pm i would encourage you to consider looking into educational options you might be interested in such as technical school/training, a community college, etc.

your post is very well laid out and very thoughtful. i think you are selling yourself short in thinking you don't have other options.

if you don't want other options that is fine. but if you would like to have other options but don't think you have the mental horsepower for other options i think you are selling yourself short.
^ This. Your OP flies in the face of your apparent feeling of self-worth. Don't sell yourself short.
Right! It’s not just meaningless flattery either. We see lots of posts from new investors. I strongly encourage the OP to continue to seek more responsibility.
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Re: Poor Publix employee seeking 401k investment advice

Post by achillesheel »

JD2775 wrote: Fri Apr 24, 2020 7:11 pm
epictetus wrote: Fri Apr 24, 2020 5:51 pm i would encourage you to consider looking into educational options you might be interested in such as technical school/training, a community college, etc.

your post is very well laid out and very thoughtful. i think you are selling yourself short in thinking you don't have other options.

if you don't want other options that is fine. but if you would like to have other options but don't think you have the mental horsepower for other options i think you are selling yourself short.
^ This. Your OP flies in the face of your apparent feeling of self-worth. Don't sell yourself short.
I agree. Welcome to the forum! And coming from someone of a similar age and earning power, I applaud your ability to save so much. With that much self-discipline, I think you've got huge potential. And, think about switching from RJ to to the low-cost brokerage (Schwab, Fidelity, etc) as a way to make your savings go farther. Whatever you don't pay in commissions, high ER, is money you get to keep and that can stay invested over time.

I recommend you start two tracks of reading; one to become a successful DIY investor. So far, you've had your hand held by the RJ advisor. But now you're taking responsibility for yourself - a laudable step, but one that comes with its own set of dangers. Read the Wiki. I recommend Bogle's little Book of Commonsense Investing for a start. And read, read, and read some more. Malkiel's Random Walk is excellent. And learn about yourself as an investor too, especially common behavioral pitfalls. Read "Why Smart People make Big Money Mistakes" for a nice little intro. And you're off and running. As you put together your investing philosophy, write it up in a Investing Philosophy Statement (IPS) and stick to that.

The second might be some reading about ways to think about your career trajectory... maybe other, wildly successful Bogleheads can chime in? Because with your ability to save, you'll be well on your way if/when your income goes up.
The unexamined life is not worth living.
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Re: Poor Publix employee seeking 401k investment advice

Post by amp »

boglewill34 wrote: Fri Apr 24, 2020 6:37 pm I can barely see some of the screen shots, but it looks like you’re paying like $700 or more in fees at RJ for the $25k portfolio. A simple 2-3 fund at Vanguard would be like $25 a year instead.
It's probably even worse than that. The $700 are the direct wrap fees on the Raymond James account, but he's likely also invested in funds with high expense ratios which will add hundreds more to the cost.

And I concur with everyone else--just from the way the OP has posted, he's clearly a pretty smart person.
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Re: Poor Publix employee seeking 401k investment advice

Post by ClevrChico »

I would be very leery of going with company stock. I've seen that work out very badly, once at a grocery chain. (As in, everyone lost their retirement.)
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Re: Poor Publix employee seeking 401k investment advice

Post by bryansmile »

OP,
I don't see any money for emergencies (emergency fund) listed. Do you have it saved somewhere else, or is it in the RJ money? If the latter, then you need to invest it separately from your retirement portfolio.

https://www.bogleheads.org/wiki/Emergency_fund
"Emergency funds should be placed in a highly liquid, easy to access, low risk vehicle with guarantee on the capital.
Checking account
Money market fund
(High Yield) (insured) savings account.
Reward checking account [RCA] : somewhat higher return, if one is willing to put in the effort to set-up.
It might be useful to keep some real cash around for those emergencies where one does not have access to bank accounts.
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ralphboy
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

bryansmile wrote: Fri Apr 24, 2020 9:00 pm OP,
I don't see any money for emergencies (emergency fund) listed. Do you have it saved somewhere else, or is it in the RJ money? If the latter, then you need to invest it separately from your retirement portfolio.

https://www.bogleheads.org/wiki/Emergency_fund
"Emergency funds should be placed in a highly liquid, easy to access, low risk vehicle with guarantee on the capital.
Checking account
Money market fund
(High Yield) (insured) savings account.
Reward checking account [RCA] : somewhat higher return, if one is willing to put in the effort to set-up.
It might be useful to keep some real cash around for those emergencies where one does not have access to bank accounts.
I have like $16,000 in my checking account.
bryansmile
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Re: Poor Publix employee seeking 401k investment advice

Post by bryansmile »

ralphboy wrote: Fri Apr 24, 2020 9:02 pm
I have like $16,000 in my checking account.
Wow, you've done a great job so far! With this much money in a checking account, do you know the interest rate?
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

40% S&P 500
20% Baird
20% American Funds Europacific Growth R6 (RERGX)
20% Publix stock

What do you think?
I suspect you were at 90% stocks before the downturn. I think you should keep that level given your age. Also, it doesn't make sense to increase bond allocation after a drop. Small considerations perhaps, but my preference.

And let's look at your portfolio overall. Publix stock is already 26% of your portfolio. I don't want to reduce it. You don't have to buy more, just take what you get. You might figure out the cost to sell if you do want to reduce it.

I'd suggest:

40% S&P 500
15% Bond
20% International
25% Publix stock. <-- reduce this if you want, but you hold that much and I don't know how much it costs to sell so don't want to

taxable at Vanguard, Schwab, or Fidelity [$35000 ]
$9,150 Total Bond <-- useful here for emergency spending
$12,200 Total International <-- preferred fund here for tax credit
$13650 S&P500

Publix stock[$16000 ]
$16000

Voya 401(k) $10000
$10000 S&P 500 <-- preferred fund here for low cost
(add Baird if you need more bonds) -> see if they can be added to the IRA first due to cost
(add RERGX if you need more international) -> see if they can be added to the IRA first due to cost

IRA at Vanguard, Schwab, or Fidelity <- any funds are great
(add bonds if needed)
(add international if needed)
(add US stocks if needed)


Notes:

Bond dividends in taxable at your rate won't be a concern for you. It's nice to have safe assets in taxable because you can use that as an emergency fund.

I prefer to try and get the tax credit for international. If it's in the 401(k), you can't claim a credit for taxes paid. In your bracket, you won't be paying anything on the qualified dividends of international which is a plus (international pays more dividends so that counteracts the tax credit, but it works for you).

If you decide to not increase Publix holdings, you can also sell them and add to taxable or preferably an IRA and claim a deduction. In fact, you could turn off all dividend reinvesting in taxable and use that to contribute to a ROTH IRA. You taxes in taxable will be minimal, but it won't hurt to have an IRA especially if your income increases.

**technically you can't add dividends from taxable into an IRA, but you can add to the IRA with your earned income. So really what you are doing is spending the dividends to live on, and then taking money from your salary (that you would have spent for living) and adding it to your IRA. This is an insignificant point just said for disclosure. An alternative would be to spend the dividends for living, and contribute more to the 401k but the IRA will have better fund choices

Just confirm again it doesn't say IRA or ROTH IRA on your monthly statement and tax forms from Raymond James

I hope others will chime in if they see a better alternative or there is something I missed or messed up
Elixir
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Re: Poor Publix employee seeking 401k investment advice

Post by Elixir »

I also work at Publix, and the expense ratios for the state street funds are very very low. They are between 0.02-0.06% or so. I use the state street aggressive strategic balance as it is cheap and fits my overall IPS.
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

Elixir wrote: Fri Apr 24, 2020 9:16 pm I also work at Publix, and the expense ratios for the state street funds are very very low. They are between 0.02-0.06% or so. I use the state street aggressive strategic balance as it is cheap and fits my overall IPS.
That's cheaper than I though. I dismissed it for cost.

ralphboy, are your Publix shares really in your 401(k)? Or are they in a taxable account? Do you get a 1099 for the dividends and file them on your return?
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

I posted what my 401k looks like in my first post. Yes, I had to file a 1099-div.
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Re: Poor Publix employee seeking 401k investment advice

Post by sfmurph »

bryansmile wrote: Fri Apr 24, 2020 9:06 pm
ralphboy wrote: Fri Apr 24, 2020 9:02 pm
I have like $16,000 in my checking account.
Wow, you've done a great job so far! With this much money in a checking account, do you know the interest rate?
Oh wow! Yes, you're really on the right track. There will be a bunch of info here, and it will take you a while to decide what you want to do. The first thing would be to decide where to move the brokerage funds to. Fidelity, Schwab and Vanguard are the obvious low-cost choices, but there are a few others. What bank are you using for checking and savings? With that much, you should really put that in a "high yield" savings account. What bank or credit union do you use now?
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ralphboy
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

Bank of America and just a checking account.
sfmurph
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Re: Poor Publix employee seeking 401k investment advice

Post by sfmurph »

ralphboy wrote: Fri Apr 24, 2020 9:48 pm I posted what my 401k looks like in my first post. Yes, I had to file a 1099-div.
It looks like you have multiple accounts or places you can get the Publix stock: the 401(k) Smart Plan, the ESPP, and the Profit Plan where Publix gives you stock. I don't see where you said what was in the 401(k).

If you got a 1099-div for the Publix stock, then they're in a taxable account.
suemarkp
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Re: Poor Publix employee seeking 401k investment advice

Post by suemarkp »

No one has mentioned a Roth account. Withdraws from a Roth are tax free after age 59 1/2. Since it appears you have money invested outside of a retirement account, and it has already been taxed, I would move your Raymond James money to one of the brokerages suggested by others as a like account (taxable brokerage). Then, open a Roth account at the same place, and transfer $6K each year from that taxable account to the Roth. As long as you have $6K in income, you can contribute to a Roth. There are income limits to doing this, but you are not close to them.

Once you have moved all of that money from taxable to Roth, use the Roth as your next investment destination outside of Publix. Keep informed as to what the Roth contribution limit is each year, as it tends to increase every few years.

Finally, having $1M is really not all that much money. If you had that much today, you could probably pull $35K/year from it for a long time. But this is matching your current standard of living (ignoring medical benefits or other costs you may have if you quit tomorrow). And if $1M today is just enough to live on, you will probably need $4M in 30 years due to inflation and maybe even more. So you may want to have $4M as your goal when you retire. You should be able to augment with Social Security too, whatever it is 30 years from now.

My son works at Winco Foods, and they have a similar approach of giving employees stock and telling stories of long time employees who are millionaires. I'd consider that money a nice to have, but not count on it. You have no idea what can happen to the company in 30 years.
Mark | Somewhere in WA State
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

Here is a simpler plan:

taxable at Vanguard, Schwab, or Fidelity [$22000 ]
2050 Target Date Index fund .08% ER at Schwab
Total Bond

Publix stock taxable [$16000 ]
$16000 (grants and prior purchases)

Voya 401(k) $10000
State Street Aggressive Strategic Balanced 0.19%ER

IRA at Vanguard, Schwab, or Fidelity[$12,000]
2050 Target Date Index fund

Notes:

a) transfer cash to Vanguard, Schwab, or Fidelity and use $6000 of it to make a traditional ira contribution. Claim the deduction.
deadline is July 15 for a 2019 contribution. Also, use $6000 to make a 2020 contribution.

b) this will leave you about 92% equities. If that is too high, put some bonds in taxable (for emergency use) or IRA for tax savings

c) You can also use the Moderate Fund in the 401(k). That would be 86% equities. But everytime you add, it will bring equities down because the balanced fund is 50% bonds.

d) your bank has a broker Merril Edge, but TargetDate and mutual funds will cost to trade. ETFs are free.
Last edited by typical.investor on Fri Apr 24, 2020 10:47 pm, edited 1 time in total.
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typical.investor
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Re: Poor Publix employee seeking 401k investment advice

Post by typical.investor »

suemarkp wrote: Fri Apr 24, 2020 10:37 pm No one has mentioned a Roth account. Withdraws from a Roth are tax free after age 59 1/2. Since it appears you have money invested outside of a retirement account, and it has already been taxed, I would move your Raymond James money to one of the brokerages suggested by others as a like account (taxable brokerage). Then, open a Roth account at the same place, and transfer $6K each year from that taxable account to the Roth. As long as you have $6K in income, you can contribute to a Roth. There are income limits to doing this, but you are not close to them.
I'm suggesting that, but why a ROTH? If it's a traditional IRA, the OP can claim a deduction to reduce taxable income and that tax saving will compound until taxes are finally paid decades later.

I guess if you expect higher rates in the future then the ROTH makes sense.
bryansmile
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Re: Poor Publix employee seeking 401k investment advice

Post by bryansmile »

sfmurph wrote: Fri Apr 24, 2020 10:00 pm
ralphboy wrote: Fri Apr 24, 2020 9:48 pm I posted what my 401k looks like in my first post. Yes, I had to file a 1099-div.
It looks like you have multiple accounts or places you can get the Publix stock: the 401(k) Smart Plan, the ESPP, and the Profit Plan where Publix gives you stock. I don't see where you said what was in the 401(k).

If you got a 1099-div for the Publix stock, then they're in a taxable account.
the 1099-div has to be for his taxable account too so the publix stock is not necessarily in a taxable.
Luckywon
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Re: Poor Publix employee seeking 401k investment advice

Post by Luckywon »

OP all the compliments you received above I agree with wholeheartedly. I think you will succeed in whatever you decide to do.
mroe800
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Re: Poor Publix employee seeking 401k investment advice

Post by mroe800 »

bryansmile wrote: Fri Apr 24, 2020 9:06 pm
ralphboy wrote: Fri Apr 24, 2020 9:02 pm
I have like $16,000 in my checking account.
Wow, you've done a great job so far! With this much money in a checking account, do you know the interest rate?
Seriously. My fiancée makes multiples of OPs salary and can’t put together this much in cash. OP seems to have a handle on things - has a goal/direction and good saving habits.
typical.investor wrote: Fri Apr 24, 2020 10:45 pm
suemarkp wrote: Fri Apr 24, 2020 10:37 pm No one has mentioned a Roth account. Withdraws from a Roth are tax free after age 59 1/2. Since it appears you have money invested outside of a retirement account, and it has already been taxed, I would move your Raymond James money to one of the brokerages suggested by others as a like account (taxable brokerage). Then, open a Roth account at the same place, and transfer $6K each year from that taxable account to the Roth. As long as you have $6K in income, you can contribute to a Roth. There are income limits to doing this, but you are not close to them.
I'm suggesting that, but why a ROTH? If it's a traditional IRA, the OP can claim a deduction to reduce taxable income and that tax saving will compound until taxes are finally paid decades later.

I guess if you expect higher rates in the future then the ROTH makes sense.
Breakpoint on Roth is typically around the 22-24% marginal rate and OP is gaining tax savings through 401K participation at least. At OP’s salary, I’d expect it to grow moving forward so a Roth at 12% marginal is not at all a bad choice IMO. If OP changes careers for some reason it’s certainly possible to expect positive salary growth there as well. I know I wish I contributed more to my Roth when I was in the 12% bracket.
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mrspock
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Re: Poor Publix employee seeking 401k investment advice

Post by mrspock »

Lastly, I don't know why you are selling yourself short with your career. It is fine to accept a low to moderately low stress job in exchange for low pay, but in reading your post it seems you are well educated, intelligent and organized. If you don't want more, that is fine, but don't tell yourself that you are not smart enough. You are holding others in higher regard than they likely deserve. There are plenty of people earning good money with less smarts than you possess.
This +1000. OP, your human capital is by far (far) your most valuable asset. You are worth millions of dollars, you just need to unlock the potential.
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ruralavalon
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Re: Poor Publix employee seeking 401k investment advice

Post by ruralavalon »

ralphboy wrote: Fri Apr 24, 2020 6:58 pm If I go to Fidelity, Charles Schwab or Vanguard would they be able to get all of the money that I have I have in Publix stock, profit plan, smart 401k, and Raymond James? Or do I have contact each of those places and get the money and then give it to them? (I'm not familiar with how to get my money out)

Also, am I able to set it up where my money comes out of my paycheck each week and instead of it being handled by Voya; I can have it go to my Fidelity, Charles Schwab or Vanguard account?
You cannot move the Publix Smart 401k. Your paycheck deductions must go to that plan.

The 1.97% fee on the Raymond James account is very high.
I don't know where I can find what type of account it is.
You can move the Raymond James account. First find out if it is an IRA or a regular brokerage account. If you can't find this on your account statement, call your Raymond James advisor and ask.

If it is an IRA just call Vanguard (Fidelity or Schwab) and ask them to help you do a rollover to an IRA at Vanguard. If it is a regular brokerage account call Vanguard (Fidelity or Schwab) and ask them to help you arrange the transfer of the account.

You will have to sign some forms but Vanguard (Fidelity or Schwab) will help you and do most of of the work.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
sfmurph
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Re: Poor Publix employee seeking 401k investment advice

Post by sfmurph »

ralphboy wrote: Thu Apr 23, 2020 7:29 pm I'm a poor Publix employee looking for advice on how to invest a portion of my paycheck each week into my 401k smart plan.



I'll be back to look at this topic in a few days because I need to chill out for a bit.
Yes, sorry about that. You asked a pretty clear question about investing part of your pay into your 401(k), and the responses were all about changing your Raymond James brokerage account, selling all your company stock and quitting your job!

Folks here get a little excited when folks like you show up with really excellent savings habit and some obvious improvements to their financial setup. Chilling out for a bit is smart.

I see three main ideas that can help you get to a great setup for your investing that, along with your great saving and spending habits, will set you up for success.

1 - Costs matter. The Raymond James brokerage is charging you money, and the Bank of America checking isn't paying you enough interest. The easy part is seeing that. The hard part is choosing what to do next! Fidelity, Schwab and Vanguard are good choices for a brokerage. For banking, a local or national credit union (Suncoast CU, Florida CU locally or Alliant nationally) can be good, as can an online bank like Ally. But the choice would depend on what you need: a branch to walk into? No Vanguard, Alliant or Ally. Deposit cash? No Fidelity. Safe deposit box? What's available. Mortgage or car loan? Hmm. There are questions here that only you can answer.
The easiest would be to keep BofA and move the Raymond James brokerage to Fidelity or Schwab. Which one has a branch near you?

2 - Simplicity matters. Rebalancing can be a pain if you're doing it manually. Some mutual funds are structured to take care of that for you. Those State Street funds look interesting for that. Fidelity and Schwab have similar ones, like the Fidelity Balanced Fund (FBALX).

3 - Asset allocation matters. Your job and investments at Publix put your situation outside of the norm for bogleheads, so you're going to get some very conflicting advice. In the end, it's your decision, but there is more risk when your job and your retirement savings are dependent on a single company. You should learn what your options and restrictions are for that stock, but you can wait on that for a few months.

I think this would be a good order to look: 1, 2, 3. Reduce costs first.

You can do this. You're in the right place.
Bama12
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Re: Poor Publix employee seeking 401k investment advice

Post by Bama12 »

ralphboy wrote: Thu Apr 23, 2020 7:29 pm I'm a poor Publix employee looking for advice on how to invest a portion of my paycheck each week into my 401k smart plan. As a Publix employee I have 3 ways to get retirement:

1) A Profit Plan where Publix gives me stock
2) A 401k Smart Plan where I can contribute 1-30% of my eligible pay on a pretax basis up to the annual IRS limit into 12 investment fund options. For every dollar I save Publix matches up to 3% of my eliglble pay and may contribute up to a maximum of $750 per year. The maximum percent that I can invest in Publix stock is 25%. Voya handles the plan.
3) An Employee Stock Purchase Plan where I can purchase stock during four time periods each. Publix does not contribute to this plan.

I don't see myself making more than $20/ hour since I don't think I want to be a manager and I don't feel like I'm smart enough to have a better job so I'm thinking about sticking with Publix for as long as I can-- I have no idea when a good age to retire will be. I remember reading that I have to wait to be 59 1/2 so I can't be taxed but then again won't I be getting social security at age 62? So maybe that is a good age to retire from Publix?

I'm not sure how much money I'll have in my retirement... any ideas what I can expect to have?
I began working at Publix at age 26 and am now 33. So far I have roughly $13,900 in the profit plan, $9,600 in the 401k plan, and $3,000 that I spent on buying Publix stock via the Employee Stock Purchase Plan.

I am currently investing 6% (Roughly $36 a week) of my paycheck and plan on upping it by 1% every 6 months (Raise time). I don't think I'll invest more than 10%.

In addition to my retirement with Publix I have $28,000 invested with Raymond James. My investor has total control of what to buy.

Here are my options for the 401k Smart Plan:
1) Invesco Stable Value Trust Fund Class A3 (total annual expense ratio 0.39%)
2) Baird Aggregate Bond Fund (expense ratio 0.30% for insitutional shares and 0.55% for investor shares)
3) T. Rowe Price Value Fund I Class (expense information 0.64% (gross) and 0.63% (net) )
4) State Street S&P 500 Index Fund
5) T. Rowe Price Blue Chip Growth T2 Class (Annual Operating Expense ratio 0.45%)
6) State Street S&P MidCap Index
7) DFA US Small Cap I (Total Operating Expense Ratio 0.37%)
8) American EuroPacific Growth R6 (Fund expense ratio 0.49%)
9) Publix Stock
10) State Street Conservative Strategic Balance Fund -Class 1
11) State Street Moderate Strategic Balanced Fund -Class 1
12) State Street Aggressive Strategic Balance Fund -Class 1

I saw this piece of advice. Should I follow it? I can't save 15% of my salary though.
Start by saving 15% of your salary into three different mutual funds
1) A US total stock market index fund
2) An international total stock market index fund
3) A US total bond market index fund
Over time the three funds will grow at different rates, so once per year you'll adjust their amounts so that they're again equal.
Of the 12 investment options I have no idea which is a 1) A US total stock market index fund 2) An international total stock market index fund and 3) A US total bond market index fund

Any advice is appreciated, would be preferable if you specifically say which of the 12 investment fund options that I mentioned you think I should invest in and what %. THANKS SO MUCH!
-----------------------
UPDATE 4/24
Do you know what the expenses are for those five State Street funds?
I was confused on these but here is the info about those funds:

State Street S&P 500 Index Fund- https://publix401k.voya.com/static/epwe ... s/CHWZ.PDF
State Street S&P MidCap Index- https://publix401k.voya.com/static/epwe ... s/CHXH.PDF
State Street Conservative Strateg Bal -https://publix401k.voya.com/static/epwe ... s/CH5S.PDF
State Street Moderate Strateg Bal-
https://publix401k.voya.com/static/epwe ... s/CH5T.PDF
State Street Aggressive Strateg Bal-
https://publix401k.voya.com/static/epwe ... s/CH5U.PDF
What is your advisor at Raymond James investing in? What type of account is this? A traditional IRA, Roth IRA, individual brokerage account? How much do you pay them for a management fee?
I have had the account since 2014. I began with an initial investment of $25,000 and over time have added $4,000 (So 29k not 28k). I don't have a specified time when I add money to the account. I told my advisor that I want to save money for retirement. I don't know where I can find what type of account it is.

Pictures of my portfolio:

https://i.imgur.com/JgbB2W1.jpg

https://i.imgur.com/Dsr4Hf4.jpg

https://i.imgur.com/nTmnyRS.jpg

https://i.imgur.com/qyDRdby.jpg

Fees for 12 months:

https://i.imgur.com/y7LH4sC.jpg

Do you have any debt? If so what types, amounts and interest rates?
No
What is your tax bracket, both federal and state? What is your tax filing status?
I have my taxes but I'm having trouble locating this info. My "marginal tax rate" is 12.00 and "effective tax rate" 10.68. My tax filing status is single and I live in Florida. My income is between $25,000-$30,000.
What asset allocation (stock/bond mix, and domestic/international stock mix) do you think that you want to aim for?
No idea, since I don't make a lot of money I want to have at least 1/2 of my portfolio invested in things that can give me the biggest potential to make the most amount of money. The other 1/2 I want to have less risk just in case I lose 1/2 of my investment in the high risk things. I am open to advice on this though.
If you put in 3% of your gross pay, Publix puts in 3% to match, up to $750 per year?
I forgot to add- For every dollar you save in the SMART plan, up to 3% of your eligible pay, Publix may contribute 50 cents to your account — up to a maximum of $750 a year — if you’re eligible

This is how it works based on my salary.
My weekly check is $587 (Before all taxes) and if I invest 3% into my 401k that would be $17 a week. $17 x 52 weeks = $884 invested in a year. Publix would match half of that which would be $442
Now if I invest 6% that would be $35 a week. $35 x 52 weeks = $1,820. Even though I invested more, Publix will still only give me $442 (and not half of 1,820 or the maximum $750)
Publix shares are not traded on any stock market. Are you permitted to sell the shares that Publix gives to you? How would that work?
Publix is a private company. Only employees can buy stock. I can sell my shares back to Publix but I think I get penalized.
Suddenly on the loading dock several of the 50+ year olds started whooping and hollering. My friend asked the supervisor what was going on, and she told him Publix had just released the updated value of the stock, (Publix is privately held), and some more of the dock workers had just become millionaires. "Some more". This was well over 10 years ago.
I know of 2 employees who both retired millionaires one was a manager making $60k (plus bonuses I think) and the other was a manager that stepped down (Not sure for how long but he was also making the same amount. He also bought Publix stock. The person had 1.5 million and the other who bought stock had 2.5 million). Both had 35-38 years with Publix (Started in 1978). From what I have heard Publix was a lot better company back when the founder Mr. George was alive. According to a person on reddit he said the current CEO of Publix said at a conference that, "Publix is not making millionaires out of grocery people anymore (I assume that means the position "grocery stock clerk" which tops out at $17) ."

Publix stock splits:
Stock Splits
Record Date Split
07/01/2006 5 for 1
07/01/1992 5 for 1
02/25/1984 10 for 1
02/25/1969 4 for 1
I have known many Publix employees over the years, and not one of them has ever regretted acquiring the maximum amount of Publix stock that they could.
I was doing between 3 to 10% (Adjusted the amount many times) of my pay check each week in 100% Publix stock for a few years but in 2020 they changed it so the max amount we can do is 25%.
I don't think you mentioned your credit use or housing financial situation.
Not sure what you mean by "credit use" but I am debt free and I use my credit card all of the time and pay the full amount each month. From what I remember a few years ago my credit score was in the high 700s. I rent a 1 bedroom condo from someone and pay $625 a month (I was paying less but after 5 years they gave me a rent raise, so hopefully I'll be at $625 for awhile).
I would find a way to slowly sell the Publix stock they give you (you don’t want to wind up with a big tax bill, so spread it out over a few years) and contribute that to a Traditional or Roth IRA.
I can initiate a rollover of Publix stock to a Rollover IRA.
-----------------------------------------------------------------------------------------------------------------------------
Update 4/24(2)

My 401k consists of 83.75% Publix stock. So I think my future contributions are going to be:

60% S&P 500
20% Baird
20% American Funds Europacific Growth R6 (RERGX)

What do you think?

My 401k looks like this:
Fund Name..................................................................Amount Available
T. Rowe Price Blue Chip Growth T2 Class...............................$740.54
Publix Stock................................................................$8,063.13
Cash Component of Publix Stock.........................................$88.13
State Street Moderate Strateg Bal.........................................$735.53
Total:............................................................................$9,627.33

I have the option to reallocate the balances for the T. Rowe Price Blue Chip Growth T2 Class and State Street Moderate Strateg Bal. I also have the option to transfer balances out of the Publix Stock Fund into other investment options via a Fund Transfer.
-----------------------------------------------------------------------------------------------------------------------------
Update 4/24(3)

I went ahead and changed my weekly contributions from 6% to 10%. I also reallocated the balances of the T Rowe Price Blue Chip and State Street Moderate Strateg Bal and did 100% of that in the S&P 500. I don't know if doing a fund transfer for the Publix stock will give me a penalty so I left it alone.

I also set my 401k to:
60% S&P 500
20% Baird
20% American Funds Europacific Growth R6 (RERGX)

I'll be back to look at this topic in a few days because I need to chill out for a bit.
I would get your match and stocks.

You really need to think more of your self. I have a lot of employees working for me that make over 20 an hour. I really don't care how smart they are. I care about attendance, attitude, and getting the job done.
tibbitts
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Re: Poor Publix employee seeking 401k investment advice

Post by tibbitts »

I would revise the title to leave off "Poor", since I don't think that's accurate.
motorcyclesarecool
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Re: Poor Publix employee seeking 401k investment advice

Post by motorcyclesarecool »

I just wanted to chime back in to add that you have already been doing an amazing job of saving. Our suggestions are aimed at letting you keep more of your own money, but you’ve already done the hardest part by saving a huge portion of what you make and living below your means.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.
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ralphboy
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

I really appreciate everyone taking the time to help me out! I e-mailed RJ to ask what type of account I have with them. I'll let you all know ASAP. This is my plan at the moment:

1) Keep 10% deduction out of my paycheck for the 401(k)
2) Have 60% S&P 500, 20% Baird, 20% American Funds Europacific Growth R6 (RERGX)
3) Once a year reallocate the balance evenly between these three things.
4) This is where I need some advice. I would like to reinvest my dividends and tax return. This dividends plus tax return is about $1500 a year. Should I buy Publix stock with this? Or reinvest this in whatever account that I open in place of RJ? Maybe 1/2 in stock and 1/2 in the other account?
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ruralavalon
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Re: Poor Publix employee seeking 401k investment advice

Post by ruralavalon »

ralphboy wrote: Sun Apr 26, 2020 5:35 pm I really appreciate everyone taking the time to help me out. I e-mailed RJ to ask what type of account I have with them. I'll let you all know ASAP. This is my plan at the moment:

1) Keep 10% deduction out of my paycheck for the 401(k)
2) Have 60% S&P 500, 20% Baird, 20% American Funds Europacific Growth R6 (RERGX)
3) Once a year reallocate the balance evenly between these three things.
4)This is where I need some advice. I would like to reinvest my dividends and tax return. This dividends plus tax return is about $1500 a year. Should I buy stock with this? Or reinvest this in whatever account that I open in place of RJ. Maybe 1/2 in stock and 1/2 in the other account?
What dividends are those you are referring to?

About how much have you been contributing annually to the Raymond James account?

If the Raymond James account is an IRA you can easily do a rollover to a new IRA at a low cost fund provider like Vanguard, Fidelity or Schwab and then use the rollover IRA to invest your tax refund etc..

If the Raymond James account is not an IRA, then start an IRA at a low cost provider like Vanguard, Fidelity or Schwab. Then use the IRA to invest your tax refund etc.

In the IRA invest in very diversified index funds with low expense ratios.

In general it's usually better to invest in all possible tax-advantaged accounts, like an IRA, as a priority ahead of investing a taxable brokerage account. Wiki article "Prioritizing Investments".

In general the account funding priority is:
(1) contribute enough to your employer's 401k plan to get the full employer each every year;
(2) invest in an IRA up to the annual maximum of $6k per year;
(3) if you can invest more then contribute more to your employer's 401k plan.

It will be important to coordinate investments among all accounts.
Last edited by ruralavalon on Sun Apr 26, 2020 7:03 pm, edited 2 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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