Anyone heard of 801k?

[kimmerspixelated]

This is not a plan that your employer knows about or pushes. Your broker doesn't push it either. It is supposed to produce double the profit or dividends with no penalties or limits. Folks, I wish I had a good link, but when I have tried to research it, I don't find the same info I had before. It's almost like it was a dream, but if it is real, would suddenly putting all your investments in such a market, ( I think it is based on something like NMex. utilities), help or hurt our current downfall of the dollar? Anyone know?

[jgraz]

1. I have!! I put all my money into it.

It's run by some Nigerian royal dude. He's gonna make me rich!

[Help me help Earth]

3. LMAO! Can I get in on the ground floor?

[jgraz]

5. Of course, I'll send you a PM on where you can send the cash

I prefer small bills, if that's OK.

[Help me help Earth]

7. Will you accept my credit card number instead?

I'll send you my social security number to prove I'm for real!

[jgraz]

10. Funny, that's just what Prince Okonobe said

Well, if it's good enough for him, it should be good enough for you.

[villager]

2. interesting -- they actually seem to exist:

http://answers.yahoo.com/question/index?qid=20070703025855AAUPXC5

[RB TexLa]

4. Your employer has nothing to do with it. It's direct investing plans

you buy stock directly from the company, many that used to offer them don't anymore.

[A HERETIC I AM]

6. Yup. Here's another article on the idea, also known as a DRIP

http://www.stockgumshoe.com/2007/07/us-801k-plans-double-returns-from-401ks.html

Not new.

[demobabe]

8. wow, never knew i had 801k plans

news to me. bush years haven't helped them much, but i keep reinvesting my $0.11 and buying .0007124 shares of stock... ;)

[A HERETIC I AM]

9. Hey! You're buying dinner.

[roamer65]

11. I know of a 201K...

It's my 401K after the recent stock market devaluations.

[Common Sense Party]

12. It's a DRIP--a dividend reinvestment plan.

It's a good idea, in concept...sorta.

You avoid commissions and huge fees. You buy shares and partial shares directly from the company, reinvesting your dividends to purchase more fractional shares. And you can buy with small dollar amounts.

What's the downside?

* Lack of diversification -- If you do a DRIP with General Electric, you're ONLY buying GE stock. You have to go to several companies and establish several, separate DRIP programs to be diversified among industries.

* Mostly only large, value stocks -- DRIPs tend to be offered by the big, old companies that pay dividends. Again, lack of diversification. If this is all you do, you have no small- or mid-cap companies, and probably no international exposure.

* No tax deduction now, as you would get for money contributed to a 401 (reduces your taxable income)

* No tax deferral -- you pay tax on dividends every year