Simple IRA's...

[haftafish22]

my company doesn't offer a 401k, but does contribute to a simple IRA option. I contribute as much as I can and the company matches 3%. I appreciate that, but I actually have a question about said IRA

we use state farm and he is our financial advisor. I have my IRA set up for maximum growth. In the last 2 years I have seen overall life of this account having 6% gains. I feel like this should be more in the 10-12% min. Anyway, I have all of my money vested with an account that each share cost around 44-46 with markets fluctuations. I feel like I should be investing in companies where the share price is low, with availability to rise quickly causing more growth. With a company they have me in, I don't feel the share prices have an availability to rise substantially with a boom in the market.

So for the question..... Can you guys recommend some companies to look into that I can propose to my "advisor" next month on my quarterly conversation with him. I feel his views are completely conservative, and I'm looking to grow, not just mature so to speak.

[mikepags]

what does your account cost you annually? that could be eating into some of it

[haftafish22]

30 bucks

[boneil]

Is this a fund or ETF of some sort that holds multiple companies? Or is it a single company stock. Funds and ETFs will hold multiple stocks, so it is diversified. Which will protect you from a single company taking dump. Each asset in the fund will only represent a certain percentage within the fund. So if one asset/stock goes up 100%, depending on the weighting in the fund, the fund may only go up 10%. The same if a stock takes 50% haircut. The fund may only lose 5%.

You really should talk to the advisor about your concerns. But remember he has a financial interest in keeping you a customer. But at the same time, understand that many funds have under performed the markets. They have hedges on which will limit their upside while protecting the downside. That may be the case here. But wouldn't know unless you know exactly what you are holding. Which you should know.

He should also be okay with talking about YOUR ideas. After all it is your money.

[Bamaman]

State Farm is a pretty small player in the 401K/Retirement field. Most of their investments are in the S&P Index fund and what they call LifePath Funds where they get more conservative close to the target dates the funds will be needed.

What you're wanting to buy into are "penny stock" funds, and State Farm's account is named Small Cap Index Fund.

I'm retired and no longer putting fund into 401K's. But I still continue to play the equities medium risky. My future funds are going into ETF's which are index funds with very low expenses.

[haftafish22]

Is this a fund or ETF of some sort that holds multiple companies? Or is it a single company stock. Funds and ETFs will hold multiple stocks, so it is diversified. Which will protect you from a single company taking dump. Each asset in the fund will only represent a certain percentage within the fund. So if one asset/stock goes up 100%, depending on the weighting in the fund, the fund may only go up 10%. The same if a stock takes 50% haircut. The fund may only lose 5%.

You really should talk to the advisor about your concerns. But remember he has a financial interest in keeping you a customer. But at the same time, understand that many funds have under performed the markets. They have hedges on which will limit their upside while protecting the downside. That may be the case here. But wouldn't know unless you know exactly what you are holding. Which you should know.

He should also be okay with talking about YOUR ideas. After all it is your money.

it is an etf so maybe I do need to just talk with him, I was just hoping for some suggestions you guys have done well with, such as the index cap above