Just started my 401k, thoughts?

Discussion in 'UPS Retirement Topics' started by instantK, Nov 3, 2013.

  1. instantK

    instantK Member

    I picked the employee pre tax 401k
    3%
    [TABLE="width: 620"]
    [TR]
    [TD="width: 250"]S&P 500 EQUITY INDEX FUND [/TD]
    [TD="width: 70"]Added [/TD]
    [TD="width: 100"]Large Cap Stock - Blend[/TD]
    [TD="width: 100, align: right"]25 %[/TD]
    [/TR]
    [TR]
    [TD="class: light_line, colspan: 5"][/TD]
    [/TR]
    [TR]
    [TD="width: 250"]S&P 400 MIDCAP INDEX FUND [/TD]
    [TD="width: 70"]Added [/TD]
    [TD="width: 100"]Mid Cap Stock - Blend[/TD]
    [TD="width: 100, align: right"]25 %[/TD]
    [/TR]
    [TR]
    [TD="class: light_line, colspan: 5"][/TD]
    [/TR]
    [TR]
    [TD="width: 250"]RUSSELL 2000 INDEX FUND [/TD]
    [TD="width: 70"]Added [/TD]
    [TD="width: 100"]Small Cap Stock - Blend[/TD]
    [TD="width: 100, align: right"]25 %[/TD]
    [/TR]
    [TR]
    [TD="class: light_line, colspan: 5"][/TD]
    [/TR]
    [TR]
    [TD="width: 250"]INTERNATIONAL INDEX FUND [/TD]
    [/TR]
    [/TABLE]
    [TABLE="width: 620"]
    [TR]
    [TD="width: 250"][/TD]
    [TD="width: 70"]Added [/TD]
    [TD="width: 100"]International Stock - Blend[/TD]
    [TD="width: 100, align: right"]25 %



    [/TD]
    [/TR]
    [/TABLE]
     
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Hard to give advice without knowing your employment status.
     
  3. brownmonster

    brownmonster Man of Great Wisdom

    Exactly the same mix as mine. Let it ride for 30 years
     
  4. instantK

    instantK Member

    I thought about the bright horizon
    age 30, 8 years with the company, started driving
     
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I am contributing 20% of my pre-tax to the 2025 BH fund. BH funds with a targeted retirement date tend to be aggressive early and then become more conservative the closer you get to the end. I will be retiring in 2019 but chose the 2025 as I wanted the more aggressive investments.

    Are you in the traditional or the Roth 401k?
     
  6. Cementups

    Cementups Box Monkey

    I have some of mine is some pretty aggressive stocks right now but they can easily be switched over if I stop making the gains that I have been.
     
  7. instantK

    instantK Member

    Traditional
    then I might set up a ROTH IRA through like vanguard or something
     
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I would love to max mine out but I am also on an accelerated mortgage repayment program which will have my condo paid off two months before I retire.
     
  9. barnyard

    barnyard KTM rider Staff Member

    Only 3%???

    What's the point?

    I am doing 12% pretax, $50/week post tax and $50 a week buying stock. I should probably double my post tax.
     
  10. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    This is why I asked him what his employment status is.
    3% is rather low but we don't know his financial position.
     
  11. superballs63

    superballs63 Well-Known Troll Troll

    3% is better than zero percent. To be honest, it's nobody's business how much he chooses/can afford to contribute.
     
  12. instantK

    instantK Member

    Yes 3% is low but its just a start I plan on slowly increasing it overtime...
    Upstate sounds like your going to have a sweet retirement!
     
  13. Funfact

    Funfact Well-Known Member

    I do all mine post tax. That way it's all mine when I retire. But hey put it in pre tax now and pay uncle sam on both what you put in and what you gained later.
     
  14. barnyard

    barnyard KTM rider Staff Member

    If the OP felt it were no one's business, then he/she would not have posted. He/she did.

    The OP has a very unique opportunity to set up a savings plan with almost no pain. Unless he/she is used to driver's wages, setting up for bigtime savings is very, very easy to do.
     
  15. barnyard

    barnyard KTM rider Staff Member

    From a planning point of view, your best return will be starting big and reducing over time.

    You should probably sit down and talk to a financial adviser. Going from PT money to FT money provides a very unique savings opportunity that you will not have again in your lifetime.
     
  16. upschuck

    upschuck Avatar bet gone wrong

    That seems like a good mix, mine not much different. Every time you get a raise, up your contribution percentage. You won't even miss the extra money.
     
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Thanks.

    I want to be in a position where I decide if I am ready to retire, not my finances.

    My son is going for his MBA and had to borrow $43K to pay for it. There were some on this forum who thought that I should help pay for part of it. My ex initially felt this way as well. While I would have loved to have helped out, I have less than 6 years to go before I am eligible to retire. The last thing I need to do at this point is take on more debt. He is working as a TA and I send a check once a month so he can get some groceries.

    He does not know this but I am hoping to pay off his students loans ($70K) for him from the proceeds of the sale of my condo.
     
  18. bbsam

    bbsam Moderator Staff Member

    Just out of curiosity, is there a way to put money into a 401k, get whatever company match there might be and then move the money to a better performing Roth IRA without incurring a penalty? You can probably tell I know nearly nothing about 401k's.
     
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I prefer the tax break now and will worry about the tax hit later.
     
  20. barnyard

    barnyard KTM rider Staff Member

    There is no company match.

    UPS pays into a MEPF for our retirement, any contributions an hourly makes is on their own.

    There is either a 5 or 10% discount for buying stock, so there is that. If a person does DRIP, they can buy even more.

    Your questions are exactly why a person should talk to a financial adviser.