We have drivers that make 100k and can't afford to put money in the 401k.
Pru 401(K) just started showing up in paycheck?
- Thread starter Brasswolf
- Start date
Brownslave688
You want a toe? I can get you a toe.
Why talk about it? Because I'd prefer not to have money taken from me to support all of the idiots too dumb to save a few percent now.
F
FrigidAdCorrector
Guest
Because those people start saving at 55 and those of us who started young end up paying taxes to support them. The amount they pay is so small it shouldn't matter. I signed up for it right away. Can't miss the money if you've never had it.
UpstateNYUPSer(Ret)
Well-Known Member
To the OP---if you don't want to contribute go to the website and zero out your contribution rate.
www.retirement.prudential.com
www.retirement.prudential.com
Lead Belly
BANNED
I've had more than my fair share of bowls of soup this winter so far. Hang in there.
My dad says the same thing.
I finally listened. 10% 401 for the last 3 years, and now UPS stock also. Portfolio diversity for the win
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FrigidAdCorrector
Guest
Mine as well. He's a smart dude with money and has kind of been my financial advisor. Told him about the 401K stuff when I was offered it and he told me to jump on it. Followed his advice and I'm happy with where I am at my age.My dad says the same thing.
I finally listened. 10% 401 for the last 3 years, and now UPS stock also. Portfolio diversity for the win
UpstateNYUPSer(Ret)
Well-Known Member
My son recently started his first "real" job and one of the first things that I advised him to do was to start his 401k. The company (Cobham) offers a full match up to 4% and will match an additional 1% if he bumps that up to 6%. He chose to start at 4% as he has a ton of student loan debt to whittle down but he hopes to be able to go to 6% within the next few years as his salary increases.
upschuck
Well-Known Member
Is your UPS stock in a Roth? The 5% discount UPS offers now, is not good enough to consider that a win.My dad says the same thing.
I finally listened. 10% 401 for the last 3 years, and now UPS stock also. Portfolio diversity for the win
Not a win. But a good way to start saving,as long as you don't buy too much stock.
upschuck
Well-Known Member
I was just saying that the tax hit on the selling it would be greater than the 5% discount presently getting.
Let me rephrase. If you put away 10 or 20 bucks a week away. You would have probably spent that money anyways. Its not a bad deal for people who can not save.
I don't own UPS stock anymore.I max out a Roth IRA for the wife and myself. And out 7% in the pretax 401k
Brownslave688
You want a toe? I can get you a toe.
No ups stock doesn't go into your 401k. It's its own account.
What makes it worth it to me is discount + dividend + no commission fees + after two years the availability of the money.
I think of ups stock less as a retirement account and more as a high interest savings account.
upschuck
Well-Known Member
When I cashed out my stock, I believe I had to pay like a $15 transaction fee, or something like that, which could be considered a commission fee, taxes on the dividend and the growth more than overtake the 5% discount. That is why I said the Roth would be a better way of saving, and never had to do it, but believe you can withdraw the amount of money you put in Roth without penalty. Depends on what your objective is, I guess.
brownmonster
Man of Great Wisdom
I payed taxes on 14k in capital gains from UPS stock last year. What was left was still money I wouldn't of had otherwise. I'm not a moreluck. Not gonna die with my money for fear of a tax hit.
upschuck
Well-Known Member
But why pay the taxes if you don't have to?
Its only a number, till you cash it in. You will never go broke,taking a profit.
Brownslave688
You want a toe? I can get you a toe.
You always pay taxes. The government always finds a way.
Unless you're worth billions.
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