Ok here is a question from a newbie about the union, stock investing, and the 401k...

Discussion in 'UPS Discussions' started by pwjuggernaut, Aug 3, 2007.

  1. pwjuggernaut

    pwjuggernaut New Member

    programs. Can you be a member of the union and still invest in the 401k program? Or are they the same? If so how much does the company match and how much per year can you put into it. I didnt know if the company would allow you to invest in the 401k program and still be a union member with the pension plan that is offered through the teamsters. Yes I have only been at UPS for 6 or so months but its so difficult to get a straight foward answer from anyone where I work. Sometimes its like Im talking to a brick wall or tree or something. (North Carolina)

    Thanks
    pwjuggernaut
     
  2. wily_old_vet

    wily_old_vet New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    There is a Teamster UPS 401k plan which you can contribute to. It is separate from the pension plan. There is NO company match. Now for some advice. Join the 401k ASAP. Contribute the max. There is no guarantee that the pension will still be there when you are ready to retire. You control your 401k money and if you leave UPS before retiring you can roll the money over into a IRA. Also DO NOT stick all the money into the Guaranteed Income Fund. You have to be in the stock market to beat inflation. Don't let days like today scare you away from stocks.:thumbup1::thumbup1:
     
  3. satellitedriver

    satellitedriver Moderator Staff Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    PW,
    Listen to Wily, his advice (excuse the pun) is right on the money. The earlier you start investing in your 401k will be to your benefit. Put it into the S&P 500 fund and forget it, until you learn more about investing.
    PAX
     
  4. pwjuggernaut

    pwjuggernaut New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    Since their is no company match (which I thought their was---I was almost sure that the hr manager told me it was 2 or 3 percent) wouldnt I be better off to invest in an IRA then take advantage of the stock buying program and then worry about the companies 401k program lastly (since they dont match), or did I miss something again?
    Thanks for your help again!
    pwjuggernaut
     
  5. vin

    vin Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    There is no company match for hourly employees. I think the company match for management is 3%. You can contribute up to 25% of your pre-tax earnings into the 401k. Investing in the 401k plan is a great way to save for your retirement, although your investment options are somewhat limited. When you are just starting out, I would choose either the S&P 500, S&P 400, or Russell 200 index funds or a combination of them. Once your balance starts to grow a bit, you can open a Self Managed Account where your choices are much greater. In the SMA, you can invest in individual stocks, or any mutial fundyou would be able to invest in with a normal IRA or brokerage account.
     
  6. Coldworld

    Coldworld Well-Known Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    many companies have some kind of 401k match. Why doesnt ups do this? I think that most fortune 500 companies match with the 401k.
     
  7. pwjuggernaut

    pwjuggernaut New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    I think one of the reasons I am confused is because when I was hired I was given a part time union benefits sheet where it goes through all that we can receive and where it states we have a 401k program that is availabe immediately but I guess I forgot it has to say that the company matches what you put in...My bad on that one and thanks for all the help.

    pwjuggernaut
     
  8. dunderchief

    dunderchief New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    There may also be a rule that says you can not participate in the plan until you have been with the company for at least a year. You may want to check on that.

    There are other plans which might be better choices for a young person, such as the Roth IRA. However, the problem so many young people have is that they are not disciplined enough to put money away for a seperate contribution to a Roth...the 401(k) is so easy and the money comes right out of your check. It almost "forces" you to contribute. Whatever you decide, the earlier you start the better off you will be!!!

    Good Luck
     
  9. beatupbrown

    beatupbrown Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    Invest in 401k in the following Mutual Funds:
    25% into each of these four types of funds:

    Growth
    Growth & Income
    Aggressive Growth
    International
    A shares (front end load); funds that are at least 5 years old or older; solid track record of acceptable returns within fund category.
    *If risk tolerance is low, put less than 25% in aggressive growth or consider adding a “Balanced” fund to the four types of funds
    I would not suggest single stocks as part of your investment plan. Single stock investors over long periods of time don’t consistently generate returns as high as mutual funds do. If you really want to own a stock for some reason (company stock, for fun, etc.), limit single stocks to no more than 10% of your investment portfolio.
     
  10. Fnix

    Fnix Active Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    If this helps you any. As soon as I started @ UPS 1.3 years ago I did the 401k with %10 of my paycheck ($23) per. I used the SP 500 and I think Russel. I have put $650 into it and I have $1200 in it now.
     
  11. AmYisroelChai

    AmYisroelChai New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    PW, Do you own a home? The benefits of owning your own home (mortgage deduction, preferential capital gains treatment, passive inflation protection, etc) might make homeownership a first do. AYC
     
  12. kasaroo

    kasaroo New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    PW---The 401K and IRA are basically the same, but you can have the 401K taken right out of your check so it's easy. The company doesn't match because they fully fund the pension. The 401K was created for you to have more if you choose. There is also an option when choosing contributions to have a portion "after tax"--like a Roth IRA. Take advantage of this and join the 401, like, YESTERDAY! Do the stock program too if you want, but the 401K first. You won't be sorry!
     
  13. MR_Vengeance

    MR_Vengeance United Parcel Survivor

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    i want to look into IRA 401k, any thoughts on this? thanks
     
  14. raceanoncr

    raceanoncr Well-Known Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    The 401K takes $ out of the top of your check each wk/mo and is not taxed until you take it out upon reaching 70 1/2 yrs old, which, of course, will be a lower tax rate. You will earn $ on growth and interest all those yrs.

    The Roth IRA puts a max of $5,000 (if you're over 50) each yr AFTER taxes and grows in whatever fund you put it into. The benefit? Your earnings are NOT taxed again! It was explained to me that since the IRS knows they're screwing us on so many counts, they'd let us have this one as a freebie.

    Do the 401K first. Max it out yourself every pay period. You will not be sorry.
     
  15. helenofcalifornia

    helenofcalifornia Well-Known Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    I believe you can start taking out money from your 401K starting at 59 1/2. Of course, you would be taxed on this. But if you are still working at UPS, a good time to pay off your credit card debt and other bills before heading into retirement, and you would still be putting money into your 401K to rebuild, hopefully, your small fortune. Who am I kidding??!!! How many drivers will still be working at 59 1/2? Just a few.
     
  16. helenofcalifornia

    helenofcalifornia Well-Known Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    Hey, I am a senior member!!!! Dude, when did that happen? Senior!!! Whew wee!
     
  17. raceanoncr

    raceanoncr Well-Known Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401


    Helen, you are probably right about the 59 1/2. I guess what I was meaning was that I think you are FORCED to start taking some out at least by 70 1/2, even if you don't want to.

    How many drivers will still be working at 59 1/2? How bout me, for one!

    Just turned 60 june 15 but only plan to go til 62. Some here are 65 and over. NOT ME!!!!
     
  18. Cezanne

    Cezanne New Member

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    God Bless you Raceanoncr, you are a better man than I.:thumbup1:
     
  19. 705red

    705red Browncafe Steward

    Re: Ok here is a question from a newbie about the union, stock investing, and the 401

    Feeder is actually easier than retirement! LOL