401k, Am I doing this right?

Discussion in 'UPS Retirement Topics' started by MrMissPieces, Jun 10, 2015.

  1. MrMissPieces

    MrMissPieces New Member

    Hi guys, New to the forum. I'm 26 have been with the company for about roughly 8 years. PT for 5yrs and now a full time driver. I started my 401k(ROTH) about 4 years ago. Long story short. All of my investments are going towards Bright Horizon 2050. 5% 401k ROTH and 3% After Tax (Non Roth) so what are ya thoughts? any input would be great. Thanks for ya time =]
     
  2. upschuck

    upschuck Avatar bet gone wrong

    After tax is Roth.

    I would put some in s&p500, you will get better return, and bump up contribution at every raise you get.
     
  3. Wise words Froggy
     
  4. oldngray

    oldngray nowhere special

    I'm not a big fan of the Bright Horizon funds. I do really like the S&P 500 which is difficult to beat over long term.
     
  5. The bright Horizon charges a bit more of a fee,also.
     
  6. upschuck

    upschuck Avatar bet gone wrong

    They do ok, and fees went down, but with that many years you could definately ride out any short term bumps in the roadwith the 500
     
  7. Its going to get crushed when the interest rates go up.
     
  8. upschuck

    upschuck Avatar bet gone wrong

    With the s&p.
     
  9. ,,​
    The bond part.
     
  10. upschuck

    upschuck Avatar bet gone wrong

    No bonds in S&P.
     
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I personally like the BH Funds---"set it and forget it".
     
  12. MrMissPieces

    MrMissPieces New Member

    wow. appreciate for the fast responses. so, I'm planning on doing 70% S&P and 30% on bright horizon? and I'll definitely will raise my contribution as I top out.
     
  13. MrMissPieces

    MrMissPieces New Member

    That's how i feel UPstateNY. "set and forget" won't log back in until I'm about to retire lol..
     
  14. I meant the B H fund.
     
  15. Jones

    Jones fILE A GRIEVE! Staff Member

    Not just a bit more a lot more, they charge nine times as much. Over the course of a 25 year career you will pay literally thousands of dollars more in fees to be in a BH fund vs the S&P 500 index. Also consider that every single one of the BH funds has underperformed the S&P index (by significant margins) over the long term so in addition to paying thousands more in fees you will likely miss out on thousands more in investment returns. There is really no good reason for anybody to be in those funds unless they feel compelled to contribute to the investment banker's retirement fund.
     
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  16. beentheredonethat

    beentheredonethat Well-Known Member

    First, congratulations for starting to invest at your age. My biggest question is why the 3% after Tax? Why not 8% Roth 401K? Or 5% Roth 401K and 3% Pre tax? (To at least get a tax advantage now). The second biggest one is as others stated about having more into an SP500.
     
  17. The Driver

    The Driver Active Member

    Great thread, was just thinking about asking the same question.

    I'm now allocated with 70% going to S&P Large Cap and 30% Bright Horizons 2045. Just changed it from 100% BH2045.

    Also doing $20 a week in discounted UPS stock with automatic dividend reinvestment.

    I'm 30 years old with 24 to 29 years left at the company.
     
  18. Sounds like a plan
     
  19. Jones

    Jones fILE A GRIEVE! Staff Member

    Do yourself a solid and get out of the BH funds completely. In 24 to 29 years you'll be glad you did.
     
  20. The Driver

    The Driver Active Member

    Yeah, what advantages could I actually expect from being in a more managed allocation?