401K Investment Allocations

Discussion in 'UPS Retirement Topics' started by airintrace, Nov 12, 2014.

  1. airintrace

    airintrace Active Member

    If you wouldn't mind sharing could you let me know how the percentages in your 401k are allocated and what percentage that you have for what? Some funds are doing well this year and some just aren't.
  2. brownmonster

    brownmonster Man of Great Wisdom

    25% each S&P, Russell, Midcap and Intl.
  3. 40% s&p 500 20% intl 10% midcap 10% small 20% bonds.
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Bright Horizons 2025.

    I prefer to put my 401k on autopilot----set it and forget it.
  5. olroadbeech

    olroadbeech Happy Verified UPSer

    it really depends on your age. you need 4 categories. growth, growth and income, aggressive growth and international.

    young people should allocate more into growth and aggressive growth with at least 25% in international. not so much in growth and income.

    me being close to retirement don't take as much risk with aggressive growth mutual funds. but I still have 25% in International.

    young people can take on more risk and weather a big market correction because you are looking at a 25-40 year window.

    old timers need to take on a lot less risk because of a smaller window.

    you need to contact experts like Vanguard or Fidelity Mutual funds. their websites have a lot of info on this subject.

    or go to daveramsey.com for some common sense advice.
  6. airintrace

    airintrace Active Member

    Doesn't anyone invest in the reit fund? Its paying a really hight annual yield?
  7. I stay away from reits. The fund is,having a good year. Up over 25%
    Last edited: Nov 17, 2014
  8. Jones

    Jones fILE A GRIEVE! Staff Member

    I put 20% in the reit.
  9. olroadbeech

    olroadbeech Happy Verified UPSer

    I have about 5% in the reit fund. it is very volatile but it is a good hedge fund.
  10. oldngray

    oldngray nowhere special

    reits ARE volatile. A lot of people love them but you have a possibility of getting burned. Long term they are usually a good investment but you need risk tolerance to stomach the swings.
  11. olroadbeech

    olroadbeech Happy Verified UPSer

    we also have 10% in precious metals. another hedge that balances out a portfolio.
  12. Returntosender

    Returntosender Well-Known Member

    I got three REITS, healthcare and property, outside of the UPS 401k. Got them at 52 weeks lows, instructed broker to have a sell order on them if the price drops 10% above of where I bought them.

    A friends father buys them just for dividend payout and moves on to the next paying Reit.
  13. olroadbeech

    olroadbeech Happy Verified UPSer

    my SMA is outperforming my regular 401k mainly due to high yielding stocks and mutuals.
  14. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Mine is doing the same thanks to the fine folks at Apple. :)
  15. cmbrown1268

    cmbrown1268 New Member

    Can anyone help me understand why UPS stock is < less than the competitor per share....i have never understood this..thanks for the education.
  16. olroadbeech

    olroadbeech Happy Verified UPSer

    price doesn't matter. price/earnings ratio is more important. you can google p/e ratios to understand that. performance over 5 and 10 years is important. not last month, quarter or year performance. you should be invested long term.

    UPS stock has not been a big winner. it may be a fair stock. but I do contribute 10 bucks a week thru automatic payroll deduction. that has grown to about 15,000 bucks over the years.

    and I reinvest the dividends. its nice to get that dividend statement every 3 months. that's actually the secret of acquiring wealth. having your money working for you . money making money.

    the last couple years my investments have been making more money than I have.
  17. airintrace

    airintrace Active Member

    I ask myself that over and over considering we lead the industry in shipping and logistics but the fact of the matter is that wall st. is completely scared and turned off by UPS because they are union. They seem to think because of that; that UPS is too top heavy in expenses because of the high cost of the labor. Although the higher cost of labor part is right we turn way more gross and net profit than FedEx.

    Also wall st. has seen what some unions have done to the auto industry and hostess for example and they are just turned off and panic every time the contract is up but that doesn't stop them from betting on UPS short every time FedEx goes up. Its weird; the whole thing is just weird.
  18. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    This has nothing to do with it. Ups market cap is much higher than fedex. There are simply more shares availible for ups than fedex. That's why it is priced lower.
  19. upschuck

    upschuck Well-Known Member

    UPS has 908 million shares outstanding
    FedEx has 283 million shares outstanding

    Multiply each number by price to get the companies value. UPS is by far the more valuable company.
  20. airintrace

    airintrace Active Member

    There is another factor... Bill Ackman:


    I'll never forget when this happened. He speculated that he was looking at FedEx for one of his funds and the stock just shot up on his speculation. This article will say that it went up $6.00 that day but it kept going and going and going.

    Also every time that earnings come out they seem to jump big but when our earnings come out minimal movement and sometimes losses on that day even when we meet expectation.

    Illegal pharmaceutical shipments, laundering money, throwing tv's like frisbees, lowering expectations for the year, deciding first that they are going to charge by dim weight and still the stock goes up and wall st. doesn't bat an eyelash. They had just as much last minute trouble as we had last christmas but yet it was UPS that failed. Also last September they re-won the post office contract for them to haul the priority mail on the FedEx planes and have the right to have a drop box in front of every post office.

    Im not saying your wrong brownslave668 but there have been other factors. I watch it everyday and just scratch my head at it. Even their dividend is .46%