Using a Retirement Account to Buy 100 Shares of Carnival Stock

[luvtosave]

I've seen lots of discussion on getting OBC for having 100 shares. Several people have mentioned that they have used an existing retirement account to obtain the 100 required shares, but I've never seen any specifics on how that works.

 

What type of retirement account do you need to do this? We have several different types of accounts, but I'm thinking it's not possible with a traditional 401K account as we don't have any say on the specific companies it invests in...just which sectors it invests in and what percentages.

 

We have other types of retirement accounts. Wondering if we have one that we can do this with or if we just need to front the money ourselves.

 

TIA for any info.

[Posaune]

I have CCL in my Roth IRA.

[luvtosave]

I have CCL in my Roth IRA.

Thank you! We have a Roth as well. I will look into it.

[Loonbeam]

Mine's in a traditional. Any self-directed account will do. Since it's a dividend stock, a roth is not a bad place for it.

[SLCfirsttimer]

I've seen lots of discussion on getting OBC for having 100 shares. Several people have mentioned that they have used an existing retirement account to obtain the 100 required shares, but I've never seen any specifics on how that works.

 

What type of retirement account do you need to do this? We have several different types of accounts, but I'm thinking it's not possible with a traditional 401K account as we don't have any say on the specific companies it invests in...just which sectors it invests in and what percentages.

 

We have other types of retirement accounts. Wondering if we have one that we can do this with or if we just need to front the money ourselves.

 

TIA for any info.

 

You are correct, with a traditional 401k you would likely not be able to purchase the shares since the options you pick from are typically predetermined by your employer or the administrator of the 401k.

 

As the other poster mentioned, you could probably do this through an IRA.

 

Or if you have money available you could also open a separate brokerage account that would allow you to purchase the stock.

[Pia1913]

You are correct, with a traditional 401k you would likely not be able to purchase the shares since the options you pick from are typically predetermined by your employer or the administrator of the 401k.

 

As the other poster mentioned, you could probably do this through an IRA.

 

Or if you have money available you could also open a separate brokerage account that would allow you to purchase the stock.

 

That's exactly where my 250 shares are; my IRA.

[paul929207]

You can do it in any account where you make the investment decisions. This would include any IRA. (traditional or Roth)

[AKman2495]

I have a traditional IRA. It has cash and securities. I took some of the cash and bought 100 shares the Monday after the Costa Concordia rolled.

 

It is now in my IRA and doing fine.

[skynight]

You have to have a retirement account that you control with the ability to instruct your account broker to purchase any individual stock.

 

Normally with a 401K the company you work for has a menu of investments that you can place your money into, and the investments are normally stock and bond funds and the company's own stock.

[long cruiser]

If you are over 70 1/2 years of age you will have to include your shares as part of your ira

distribution which is taxable.

long cruiser

[caribill]

If you are over 70 1/2 years of age you will have to include your shares as part of your ira

distribution which is taxable.

long cruiser

 

Not if you have an existing Roth IRA that the shares can be a part of.

[LeeW]

My 401k plan had around 8 plan options plus a seldom-used Self Directed Account that allowed purchase of any stock, bond or fund. I shifted around $3000 at the time into that option and then bought CCL with it. Reasoning was that since I didn't plan on selling until retirement anyway and CCL was doing better than the company options I really couldn't lose.

 

After I left the company the main 401k funds continued to be stagnant at best, so I transferred them out to a fund manager and they are now doing much better. Problem was that it was an all or nothing transfer - could not leave the self-directed account with CCL stock. But did sell at around a $10/share profit (which rolled into the new account). Then waited until CCL dropped below 36 and bought with other funds. Took six months to get a low price, but wasn't cruising Princess so didn't need the onboard credit.

[TravelingEA]

I've seen lots of discussion on getting OBC for having 100 shares. Several people have mentioned that they have used an existing retirement account to obtain the 100 required shares, but I've never seen any specifics on how that works.

 

What type of retirement account do you need to do this? We have several different types of accounts, but I'm thinking it's not possible with a traditional 401K account as we don't have any say on the specific companies it invests in...just which sectors it invests in and what percentages.

 

We have other types of retirement accounts. Wondering if we have one that we can do this with or if we just need to front the money ourselves.

 

TIA for any info.

I have 100 shares in my IRA. If you have a 401K that allows you to have a brokerage account within the 401K or 403B, you should be able to do it there as well.

[paul929207]

If you are over 70 1/2 years of age you will have to include your shares as part of your ira

distribution which is taxable.

long cruiser

Yes, it will be part of the Required Minimum Distribution if you are 70 1/2 and the account is a regular IRA. If it is a Roth, no distribution is required.

[redtogo]

I have an IRA and I was told I could not select CCL as an investment. I guess it depends on which company you are invested through.

[Plant]

I wouldn't try to buy Carnival stock through an IRA. Just buy it through any financial consultant (Merrill Lynch, Ameriprise, Edward Jones, etc.) or through the Carnival website. Much easier, IMHO.

[OCruisers]

I wouldn't try to buy Carnival stock through an IRA. Just buy it through any financial consultant (Merrill Lynch, Ameriprise, Edward Jones, etc.) or through the Carnival website. Much easier, IMHO.

 

Have to agree with you on this.

While I do NOT buy stocks in companies that fly or float ... if I did, I would buy it through my regular broker and not an IRA, SEPT, etc.

LuLu

[Pia1913]

I have an IRA and I was told I could not select CCL as an investment. I guess it depends on which company you are invested through.

 

What? I bought CCL the same as any other stock in my portfolio. I buy and sell all the time, but I'm self directed and use Fidelity. Stopped paying those huge brokerage fees many years ago.

[joanne2]

How usable is the shareholder benefit, i.e., is it combinable with other discounts? We usually cruise with Celebrity and we bought the RCI stock for the benefit only to find that it really couldn't be combined with anything, discount, OBC, etc. Luckily we still made a good profit when we sold it.

[AE_Collector]

Carnival shares are the opposite of Royal Caribbean shares.

 

CCL shareholder benefit is very combinable with other credits unlike Royal Caribbean's shareholder benefit.

 

In 4 years CCL shares have increased in price about 30% ($30 to $40) where as RCI shares have almost tripled in price ($24 to $68). Sooner or later CCL might play catch up but the best way for them to move in that direction might be to follow the RCI lead and stop the combinability amongst other cost reducing/revenue maximizing moves.

 

So...cruise with Princess and own RCI shares!

 

Terry

[caribill]

 

In 4 years CCL shares have increased in price about 30% ($30 to $40) where as RCI shares have almost tripled in price ($24 to $68). Sooner or later CCL might play catch up but the best way for them to move in that direction might be to follow the RCI lead and stop the combinability amongst other cost reducing/revenue maximizing moves.

 

 

Best way to move the stock price up to to have new ships that command premium prices for several years after being introduced. That is what RCCL is doing.

[redtogo]

What? I bought CCL the same as any other stock in my portfolio. I buy and sell all the time, but I'm self directed and use Fidelity. Stopped paying those huge brokerage fees many years ago.

 

i talked to the man who runs this locations office for my

IRA investments. He said No, I do not have that option with this company. And its name is known worldwide

[RocketMan275]

i talked to the man who runs this locations office for my

IRA investments. He said No, I do not have that option with this company. And its name is known worldwide

 

Are you talking about an IRA or a 401k? Or maybe this is an account managed on your behalf by a broker?

 

If you put the money in the account (includes rollovers), then it's an IRA. If it is an IRA, you can pretty much buy anything you want although some restrictions do apply. If your employer put the money in (including your contributions), it's a 401k.

 

It could be a managed account where the broker makes all the decisions and still be an IRA.

 

I used to have my IRA in a managed account where the investment firm made the investment decisions. I could not use this account to buy Carnival or any other stock. My broker simply created another account and transferred funds from the managed account to the other account and I bought the stock with that. Both accounts were IRA so there were no tax implications from the transfer.

 

For note, whether the stock goes up or down is really immaterial to me within reason. I cruise twice a year. OBC is $100 per cruise. CCL pays a $100 dividend per year. Regardless of the stock price, I'm making $300 per year. If the stock is trading at $36, I'm making over 8% per year.

[DebJ14]

I have my shares in my Self-Employed SEP account. Never had a problem getting the OBC.

[2pbears]

i talked to the man who runs this locations office for my

IRA investments. He said No, I do not have that option with this company. And its name is known worldwide

 

Is this a brokerage firm or a mutual fund company?