Pru 401(K) just started showing up in paycheck?

[Bagels]

I realize this thread was posted in February but since it has resurfaced....

A 401K plan makes sense to a driver in mid-career. A 401K makes less sense a 20-something who will not recognize any tax savings from the deferred income (because his income is too low) & could use the cash now to payoff other high interest debt. Ultimately, this could lead to larger future savings.

Because the government allows companies to match, this should be part of the purpose of a 401k. I think it's terrible that UPS can't even throw a dirty dime at us for each dollar. They do sell their stock for a 5% discount, however, which is why I invest in both plans for diversity reasons.

UPS is among the most generous of any company in terms of retirement contributions. Unfortunately, the cash goes toward the pension.

 

[By The Book]

We have drivers that make 100k and can't afford to put money in the 401k.

All my exes live in Texas. Has a nice ring to it, maybe it's at play here.

 

[Grey]

As a somewhat new driver who's nearly 3 years away from top rate and only works 3-4 days a week it doesn't make sense yet. When work picks up I will activate the 401k. What's the max % they match?

 

[UPS4Life]

As a somewhat new driver who's nearly 3 years away from top rate and only works 3-4 days a week it doesn't make sense yet. When work picks up I will activate the 401k. What's the max % they match?

0%

 

[Jackburton]

As a somewhat new driver who's nearly 3 years away from top rate and only works 3-4 days a week it doesn't make sense yet. When work picks up I will activate the 401k. What's the max % they match?

0% because they contribute to a pension on your behalf.

 

[brownmonster]

As a somewhat new driver who's nearly 3 years away from top rate and only works 3-4 days a week it doesn't make sense yet. When work picks up I will activate the 401k. What's the max % they match?

Start now. There will be a never ending list of reasons why you can't. Marriage, house, kids, college etc. suddenly you'll say, I wish I would have saved more.

 

[Brownslave688]

Start now. There will be a never ending list of reasons why you can't. Marriage, house, kids, college etc. suddenly you'll say, I wish I would have saved more.

I just don't understand why this is such a hard concept.


I have friends every freaking day say. Yeah I need to take advantage of my company match. 1,2,3,4 years later still saying the same thing.

Just do it. You can't miss money that isn't there!!!!!!

 

[brownmonster]

I just don't understand why this is such a hard concept.


I have friends every freaking day say. Yeah I need to take advantage of my company match. 1,2,3,4 years later still saying the same thing.

Just do it. You can't miss money that isn't there!!!!!!

Nothing easier than payroll deduction. I have a friend who talks about this great life in retirement but won't even put enough in to get the match. I want the money now. You can't have both.

 

[Brownslave688]

I want the money now. You can't have both.

Wife and I have this argument all the time. You can have a Cadillac lifestyle now or a Maserati lifestyle when you retire. Which do u want.

 

[upschuck]

I just don't understand why this is such a hard concept.


I have friends every freaking day say. Yeah I need to take advantage of my company match. 1,2,3,4 years later still saying the same thing.

Just do it. You can't miss money that isn't there!!!!!!

In a society of getting everything now, now, and now, delayed gratification is becoming a lost skill. Got to keep up with the Jones'.

 

[Brownslave688]

In a society of getting everything now, now, and now, delayed gratification is becoming a lost skill. Got to keep up with the Jones'.

Without a doubt. It's amazing we make over 250k and have less stuff than most couples we know making under 100k.

 

[superballs63]

Wife and I have this argument all the time. You can have a Cadillac lifestyle now or a Maserati lifestyle when you retire. Which do u want.

I'm so bad at choosing!! I can has both?

 

[By The Book]

As a somewhat new driver who's nearly 3 years away from top rate and only works 3-4 days a week it doesn't make sense yet. When work picks up I will activate the 401k. What's the max % they match?

Put in $25.00 a week after you start your account. Every raise put in $25.00. At top rate it will then be at $100.00. Your take home pay doesn't drop by $100.00, it drops by about $70.00.

 

[upschuck]

Put in $25.00 a week after you start your account. Every raise put in $25.00. At top rate it will then be at $100.00. Your take home pay doesn't drop by $100.00, it drops by about $70.00.

Dang, I've been putting too much in.

 

[Babagounj]

I'm up to 17% and plan to increase 1% each quarter until retirement next year .
My biggest mistake was stopping the deduction about 10 yrs ago , I was deducting 20 % and living off of my saving accounts until they dropped to low . I've slowly been increasing the deduction ever since .
Been in the 401K plan since 1997 and have an account well over $400,000 last time I looked .

 

[MendozaJ]

You should be contributing at least 13% between your 401k and Roth 401k, especially if you're young. There's no point in waiting. $25 a week for a driver is not enough. If you expect to be earning more by the time you retire, 3/4 of that should go into the Roth. The Roth has no limit, withdrawals are TAX FREE after the age of 59.5, and you can transfer your savings to your spouse should you croak who, in turn, can withdraw tax free.

 

[UpstateNYUPSer(Ret)]

Nothing easier than payroll deduction. I have a friend who talks about this great life in retirement but won't even put enough in to get the match. I want the money now. You can't have both.

Both you and I know that family can get in the way of trying to save for retirement but if you work for a company that offers a match you should contribute at least up to the match. That is free money.

 

[UpstateNYUPSer(Ret)]

You should be contributing at least 13% between your 401k and Roth 401k, especially if you're young. There's no point in waiting. $25 a week for a driver is not enough. If you expect to be earning more by the time you retire, 3/4 of that should go into the Roth. The Roth has no limit, withdrawals are TAX FREE after the age of 59.5, and you can transfer your savings to your spouse should you croak who, in turn, can withdraw tax free.

Good advice up to the part about "The Roth has no limit"----if you are talking about the Roth 401k then it has the same annual limit(s) as the traditional 401k.

 

[Insaneasylum]

As a somewhat new driver who's nearly 3 years away from top rate and only works 3-4 days a week it doesn't make sense yet. When work picks up I will activate the 401k. What's the max % they match?

Yep start now 5-3% at bottom wage isn't much so you won't notice it's gone. Then with every raise bump up the 401k 2-3% so you still don't notice it. But if you wait to start when your at top wage you will notice the 10-12%

 

[Insaneasylum]

Isn't there a max % amount you can have deducted from your check also? Last place I worked only let me do up to 12%