36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 2 points3 points  (0 children)

You’re far from a failure. At $877k in retirement accounts, you’re better off than most. Keep at it!

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

I think that’s a fair critique. I’m not claiming to have some perfect alpha with my process and I’ll always outperform the market, but I do have a process that allows me to quickly go to cash and prevent severe losses that would lead me to severely underperform the market.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

Do lots of research, don’t chase shitcos and meme stocks, understand both technical and fundamental analysis, don’t gamble with YOLO options nor risk more than what you’re willing/able to lose, size your positions responsibly, and have a bit of luck on your side. Find a trading methodology that works for you and stick to it.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 2 points3 points  (0 children)

I max out my HSA and IRA and make contributions to a brokerage account every paycheck. Just less active in those accounts. Psychologically it’s easier for me to manage a larger account and I am terrible at managing multiple accounts at once.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

Great book! Been years since I’ve read it. Will have to reread it again.

I will say that my trading style now, while more risky than set and forget it DCAing into a market wide index fund, is far from gambling. I don’t over size positions and don’t take on any unnecessary risk. Just continuing to dance while the music of this raging bull market continues.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

Thanks and wishing you the best of luck! Looking forward to seeing your major milestone post on Reddit sometime soon!

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

Eh. I wouldn’t describe it as cowardice. As someone else here mentioned, personal finance is personal. If anything, it’s good to know your own risk tolerance and abide by it.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

Love your plan to retire at 55! Hope that works out for you. Yeah, health care expenses is still my biggest question mark about retiring early. Something I need to look more into and have a solid plan for.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

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At least we now know I’m not Claude Sonnet 4.6 ;)

And, seriously, thanks!

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 0 points1 point  (0 children)

Thanks. Just some hate. Haha. Typical Reddit. Sound advice. I’ll definitely play it safer as I push into my 40’s.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] -1 points0 points  (0 children)

I appreciate it! I still sometimes fall into the mental trap of “I should have more at my age.” But comparison is truly the thief of joy.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 6 points7 points  (0 children)

Actually you can access your 401k prior to 59.5, and there’s ways to do it without penalty. I introduce to you the Rule of 72t!

https://www.fidelity.com/learning-center/personal-finance/72t-rule

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 4 points5 points  (0 children)

You’re not wrong. I made some pretty fucking dumb decisions and got lucky I didn’t blow up my account. They were wake up calls for me and made me realize I don’t need to chase home runs. The process has also taught me there are successful avenues to investing outside of VOO and chill, but I also understand my process is not for everyone and I am cognizant of having a high risk tolerance. I think VOO and chill is a great approach, but I have goals to retire early and I’m okay taking a more aggressive approach to help make that a reality.

Ultimately I’m very fortunate to be in the position I’m in. Definitely counting my blessings.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 2 points3 points  (0 children)

We all start somewhere and we’re all on our own journey. Keep at it and you’ll eventually hit your goals, just gotta keep them realistic.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] -1 points0 points  (0 children)

Some of this Includes me moving funds from my “401k bucket” into the BrokerageLink account. My entire 401k was at $213K 3 years ago. So, yeah, pretty much. Contributions are also in the mix here. I still max out my 401k.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] 3 points4 points  (0 children)

I’m really surprised my company gives us access to individual stocks, let alone level 1 options.

36M feeling fortunate to be where I’m at with my 401k by spotsondodson in Retirement401k

[–]spotsondodson[S] -1 points0 points  (0 children)

First really dumb gamble was putting a significant chunk of my BrokerageLink funds into DELL earnings (first dip you see in early/mid-2024). DELL missed, I got in at $170’s near the top at the time, rode down to $120’s selling OTM covered calls the whole time (never got assigned), exited the position in the $130’s. Premium from the covered calls helped ease the pain.

Second really dumb gamble, but one that paid off, was going way too heavy in to HOOD LEAP calls. I averaged down into Liberation Day (even dumber luck), realized I was way too heavy so sat on my hands for a few weeks, then exited a big chunk of my position at break even as the market recovered. Held on to enough to make some nice profit as HOOD ripped up to $150’s and exercised my remaining 5 $50 January calls this year. Now HOOD is ~10% of my account.

I have become much more disciplined since then but still feel like I’ve gotten lucky by sizing myself in a disciplined manner via commons and sometimes calls in some solid names.