realbrown1
Annoy a liberal today. Hit them with facts.
But not unnoticed or forgotten.
How big is your 401k?
- Thread starter joesmith
- Start date
olroadbeech
Happy Verified UPSer
you can save a ton on taxes. my account along with every other American took a huge hit in 2008 but now it has more than doubled. plus I keep a lot of cash in my SMA and bought gold funds thru vanguard and undervalued stocks also because that was what Buffett and other billionaires were doing.
don't follow the crowd. watch what the big money people are doing.
UpstateNYUPSer(Ret)
Well-Known Member
You don't want to keep too much cash in your SMA, which is a non-interest bearing account, but you do want the ability to buy a stock without having to wait to transfer funds.
I had set aside $20K to buy Netflix on 7/15. I was hoping to get in at $95. It is at $115, which is too high of an entry point for me.
onehandsolo
Well-Known Member
Having your house payed for is great help going into retirement Because I am divorced I will have a mortgage payment. Although the principal and interest combined in my case is only $577. So instead of retiring at 56 I will try to make it till 58, 59 or 60. I have 200k in my 401k and will max it out the rest of the way.
UpstateNYUPSer(Ret)
Well-Known Member
Your P&I are only $577? Have you considered making an additional principal payment each month?
onehandsolo
Well-Known Member
No I would rather max out my 401k and build back up my emergency fund. My property tax, insurance and hoa fees(for a town home) add another 350 a month. My car is paid for and I just have basic cable with Internet and a smart phone. I do pay $240 a month for a personal trainer. It helps keep me in good shape and makes this job a little easier. I only take one or two days a year of without pay and schedule some of my vacations during weeks that already have a paid vacation day or two. I am trying my best to be able to retire between 56 and 60.
Serf
Well-Known Member
I have finally got around to reading every post in this thread. And I can truthfully say I have found it interesting, as well as informative. As it relates to a conversation I had with coworker of mine at FedEx Express about retirement. Which had me befuddled. He has been with the company for 8 years. And fully intends to stay for the longhaul. And boasts he already has 11,000 dollars saved in his company sponsored 401k plan.
The plan dictates that if you contribute 6% of your earnings, Express will match 3%. Dollar for dollar on the first 1%, and .50% on the next 2 %. Now take in mind the median average earnings for an hourly employee at Express is about 34,000 a year. He is slightly above this. He is single. And has 1 child. I can't help but come to the conclusion that "you don't make enough money to be using a 401k platform for retirement!"
Take into account most don't have the discipline to save much at all. But in lieu of this I think I would much rather have 11k sitting in a savings account or even CD, than a 401k plan.
The plan dictates that if you contribute 6% of your earnings, Express will match 3%. Dollar for dollar on the first 1%, and .50% on the next 2 %. Now take in mind the median average earnings for an hourly employee at Express is about 34,000 a year. He is slightly above this. He is single. And has 1 child. I can't help but come to the conclusion that "you don't make enough money to be using a 401k platform for retirement!"
Take into account most don't have the discipline to save much at all. But in lieu of this I think I would much rather have 11k sitting in a savings account or even CD, than a 401k plan.
The Driver
I drive.
But is he planning on promotions in the future? That makes a difference.
Serf
Well-Known Member
Not impossible. But getting into management or dispatch is quite challenging at Express.
brownmonster
Man of Great Wisdom
If he took advantage of the whole company match and has been in a rising market for most of the last 8 years, he should have a helluva lot more than 11k.
Brownslave688
You want a toe? I can get you a toe.
That would be pretty stupid to have it in something making maybe 1% a year instead of something that could make you 10%
Or that could lose 50%?
Brownslave688
You want a toe? I can get you a toe.
Yeah but you'll never save enough for retirement without growth. With that comes risk.
Ye
The market has had one heck of a run ,the last few years.
The question you need to ask ,what is bigger the next few years. The upside or the downside?
Yes I know. Depends on where you are in your career.
The market has had one heck of a run ,the last few years.
The question you need to ask ,what is bigger the next few years. The upside or the downside?
UPS4Life
Well-Known Member
I've been watching Netflix as well and the time to buy would have been before the split but it's easy to say that now. Another stock I've been watching but haven't pulled the trigger is CAT, they have fallen a good bit the last year and with their dividend better than ours I don't think it would be a bad long term deal. Last I checked they were around $77~
UpstateNYUPSer(Ret)
Well-Known Member
I passed on Netflix and instead bought another 180 shares of Apple (@$110).
UPS4Life
Well-Known Member
Can't say I blame you one bit there! Wish I could add more to my portfolio but I just bought a house so I'm working on priorities first.
UpstateNYUPSer(Ret)
Well-Known Member
I really wanted to wait a bit longer for Netflix to come back down to reality but when I realized that wasn't going to happen I took advantage of a downturn for apple.
I am 3 years away from retirement and trying to take advantage of any deals between now and then.
Serf
Well-Known Member
True. While I do not disagree, I am simply wondering if utilizing the 401k option as a retirement tool is suitable for someone who makes "lower middle class wages." It would seem that perhaps, other vessels for retirement would be just as advantageous.
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