U
uber
Guest
On todays stub I have a new deduction that says, "PRU 401k". I'm curious about this since I never set up a 401k. I'm not necessarily opposed to it either.
Anybody else have this happen?
Anybody else have this happen?
Brownslave688
You want a toe? I can get you a toe.
How much are we talking here?
I've never seen one say PRU 401k
I've never seen one say PRU 401k
U
uber
Guest
Roughly 3%.
U
uber
Guest
So the company just automatically set me up a 401k? Odd.
BearcatShane09
Package Handler
I don't have an answer for you Zagsfan (nice win over pepperdine tonight, btw) but I'm a part timer and I was wondering if I could set up a 401K as I plan to be with UPS until at least 2050. If I can, where do I go to set that up?
UpstateNYUPSer(Ret)
Well-Known Member
Indecisi0n
Well-Known Member
UPS auto enrolls you. How this is legal I have no clue.
Brownslave688
You want a toe? I can get you a toe.
Because 2-3% is what you lose to taxes anyway. If you do a traditional 401k. So they are given you money for retirement that you wouldn't see anyway.
J
jibbs
Guest
Christ, man.... I have trouble setting up plans a week in advance, I can't even fathom 35-40 years down the road....
Dracula
Package Car is cake compared to this...
You better figure it out. Ask any UPSer with over 20 years seniority. Most will tell you that they wish they would've started the 401K earlier or put more into it. Save like there won't be a pension or Social Security. Do that, and you will be fine in your old age.
J
jibbs
Guest
In order to save money, I need to have some left over after paying rent, gas, and groceries. Point being, I won't be able to save jack smile* until I land a second job with one of these resume`s I keep putting in.
It's kind of friend*ed when you can see the reality of the future, but the reality of your present is unable to cope. (I'm not a fatalist, by the way. I'm actively seeking secondary employment, it's just proving elusive.)
Bagels
Family Leave Fridays!!!
Contributing to a traditional 401K decreases your take home pay. Yes, it decreases the taxes you currently pay, and increases your paper assets, but your contributions end up in a heavily restricted account.
Since UPS does not match our 401K contributions, one should speak with a financial consultant before making 401K contributions; typically, it's in your best interests to pay off high-cost debt & accelerate mortgage payments in lieu of 401K contributions. There's also other investment opportunities available that you may be better off in. Financial service companies make billions off managing your money... don't be fooled by the "one size fits all" approach. Do what's best for you.
Bagels
Family Leave Fridays!!!
I completely agree that people should save as if pensions / social security will be nonexistent when they retire. However, I disagree that the savings should wind up in the 401K. There's plenty of investment opportunities especially for younger UPSers, and the 401K program may not be the best option; traditional 401K typically stand out when employers match contributions, which isn't the case at UPS. Nor does it make sense to contribute to a 401K when you're drowning in accumulating high-cost debt, or making minimum mortgage payments. Unless you want to be one those people with $500,000 in your 401K but $500,000 in debt... with plans to keep the 401K but extinguish the debt in bankruptcy. It's always best to entrust the services of a professional financial consultant. And by that I do not mean your personal banker, who tags himself as a financial consultant, but encourages you to keep $20,000 in your liquid accounts while maintaining a $15,000 balance on your credit cards at 20% interest...
Dracula
Package Car is cake compared to this...
Doesn't matter whether or not it is a 401k or and IRA or whatever. The bigger point is you need to find a way to start saving NOW. Long term savings needs to be considered a bill like anything else. Don't make the mistake many of us made. I'll be working 10 more years than I really want to because I got started too late. I just hate to see workers make that same mistake, especially when they are in position to correct it.
Bubblehead
My Senior Picture
Bagels, while I agree with your assertions in regards to controlling interest on debt, I find it hard to fathom doing better than the 401k for retirement investments as an average blue collar worker.
When you combine interest earned with the taxes differed, unless you are a stock market guru with a lot of time, it's hard to beat.
Last year my 401k earned 15% interest tax free, while I was able to defer taxes on $14,000 of my earned income.
I'm sure there are formulas to prove your statements true, I just don't think most of us have the wherewithal to realize a better return than the 401k.
Either way BearcatShane, start saving now.
All that you can, you won't be sorry.
When you combine interest earned with the taxes differed, unless you are a stock market guru with a lot of time, it's hard to beat.
Last year my 401k earned 15% interest tax free, while I was able to defer taxes on $14,000 of my earned income.
I'm sure there are formulas to prove your statements true, I just don't think most of us have the wherewithal to realize a better return than the 401k.
Either way BearcatShane, start saving now.
All that you can, you won't be sorry.
Brownslave688
You want a toe? I can get you a toe.
I agree talk to a professional but paying down a 3-5% mortgage makes zero sense at all. Your investment returns will be higher. Also if you do 2% in a traditional 401k your take home is exactly the same. So either u put it in the 401K or the government gets it. I prefer to keep my money.
Bagels
Family Leave Fridays!!!
Paying down a mortgage at current interest rates vs. investing the money is a topic of much debate... but I was thinking more about people with interest-only and 7% loans (who can't refi - and there's many out there).
And even a 2%, or 1%, contribution will lower your take-home pay.
