Prudential 401K plan

[kingOFchester]

I have been contributing 10% of my income into the Prudential 401k.
I see that I am being charged about 1% for them to "handle" my account. This seems a little high, considering that I could do far better on my own and or with other companies.

In 1yr and 7 months I am going to up contribution to 20%-30%. I also max out my Roth IRA, and have less then 5 years left on my 10 year mortgage.

What are you guys doing with your 401k? Are you using prudential? Or on your own.

Thanks

 

[kingOFchester]

I have been contributing 10% of my income into the Prudential 401k.
I see that I am being charged about 1% for them to "handle" my account. This seems a little high, considering that I could do far better on my own and or with other companies.

In 1yr and 7 months I am going to up contribution to 20%-30%. I also max out my Roth IRA, and have less then 5 years left on my 10 year mortgage.

What are you guys doing with your 401k? Are you using prudential? Or on your own.

Thanks

After a little more research, I think I was wrong about the fee's. Seems like there is a yearly fee of 23.50.....and 10.00bps investment fee and .28 bps custody fee. Not anywhere close to the over 1% I calculated. Need to learn more.

 

[Jones]

I'm at 20% right now, split up over 5 funds. Large cap, mid cap, small cap, international, and real estate.

 

[brownmonster]

I have been contributing 10% of my income into the Prudential 401k.
I see that I am being charged about 1% for them to "handle" my account. This seems a little high, considering that I could do far better on my own and or with other companies.

In 1yr and 7 months I am going to up contribution to 20%-30%. I also max out my Roth IRA, and have less then 5 years left on my 10 year mortgage.

What are you guys doing with your 401k? Are you using prudential? Or on your own.

Thanks

Nice work on the finances. I backed off from 17% years ago to 8% now. Wife does 8% also. Had to switch priorities to helping 3 kids through college. Balances are high enough that continued growth (knock on wood) will offset less contributions.

 

[UpstateNYUPSer(Ret)]

Nice work on the finances. I backed off from 17% years ago to 8% now. Wife does 8% also. Had to switch priorities to helping 3 kids through college. Balances are high enough that continued growth (knock on wood) will offset less contributions.

I am on the opposite side of the spectrum. Kids are done with college, my half of daughter's wedding is almost paid for, I have just about completed my Total Money Makeover (Dave Ramsey) and will be debt free (other than my mortgage) very soon so I plan to jack up my contribution and also take advantage of the senior citizen catch-up.

Here's a tip--when you increase your contribution rate you should also increase the number of withholdings on your W-4. There are online calculators which can help you figure this out. This way your take-home pay stays about the same and you don't get a huge tax refund.

 

[kingOFchester]

Nice to see others keep their finances in check. Going thru a divorce in my early 30's set me back, after ex and the leaches (lawyers) I walked away with pretty much the clothes on my back. Good tip about the w-4.

 

[satellitedriver]

I have been contributing 10% of my income into the Prudential 401k.
I see that I am being charged about 1% for them to "handle" my account. This seems a little high, considering that I could do far better on my own and or with other companies.

In 1yr and 7 months I am going to up contribution to 20%-30%. I also max out my Roth IRA, and have less then 5 years left on my 10 year mortgage.

What are you guys doing with your 401k? Are you using prudential? Or on your own.

Thanks

You are on the right track.
Luckily, I am totally debt free.
I max my 401k, including the senior catch up.
My 401k is divided half and half between self-managed account, which are individual stocks, and the same blend Jones is using in the available index funds.
I max my wife's IRA.
I save and invest the rest of my paycheck.
We live on my wife's pay and even save some of that.
I keep a fluid cash emergency fund that would hold us over for a year, if we both lost our jobs.
I have been more than lucky.
I truly have been blessed with a wonderful wife who shared and supported our efforts to get to this financial point.

 

[Babagounj]

just check my pru 401k account, only being charged 0.04

 

[packageguy]

I'm at 12% , so far holding my own. come Noverber and December I raise to the max.

 

[satellitedriver]

BTW,
This year your Social Security contribution rate has been lowered 2%.
Invest that 2% into your 401k, without any effects on your bring home pay.
Free money, for the saving.

 

[Catatonic]

BTW,
This year your Social Security contribution rate has been lowered 2%.
Invest that 2% into your 401k, without any effects on your bring home pay.
Free money, for the saving.

Unless you are already maxed out.
External Roth IRA maybe. My Vanguard Roth IRA did pretty well in 2010.

 

[satellitedriver]

Unless you are already maxed out.
External Roth IRA maybe. My Vanguard Roth IRA did pretty well in 2010.

The advice was for those that are not maxed.
Most are not even close to maxing out their 401k contribution, for fear of lowering their bring home pay.
The 2% reduction in SS tax should be invested in a tax free, or tax deferred account, for the long term benefit.
Hoke, you and I have feathered our own nests.
For a young person just starting out, adding that 2% -(that would never be missed)- into a 10, 20, 30, 40yr investment is a golden opportunity.

 

[kingOFchester]

I would suggest to max out a Roth Ira before the 401k......Unless your company has matching contribution.

 

[satellitedriver]

I would suggest to max out a Roth Ira before the 401k......Unless your company has matching contribution.

Absolutely.

 

[DS]

Mashed potato sandwiches in a grub hut for us.
I started too late.

 

[browniehound]

You are on the right track.
Luckily, I am totally debt free.
I max my 401k, including the senior catch up.
My 401k is divided half and half between self-managed account, which are individual stocks, and the same blend Jones is using in the available index funds.
I max my wife's IRA.
I save and invest the rest of my paycheck.
We live on my wife's pay and even save some of that.
I keep a fluid cash emergency fund that would hold us over for a year, if we both lost our jobs.
I have been more than lucky.
I truly have been blessed with a wonderful wife who shared and supported our efforts to get to this financial point.

Hey Sat, how's the self-manged account working for you? I know the minimum to get started is 5K and have been thinking about doing it. I was thinking what the heck, I'll take 5K and risk it on some stocks that have a potential for very large gains and very great risk. I wasn't going to open it just to put more money in the S + P or steady companies that pay a nice dividend like UPS. I want to gamble with the hope of a 300% gain. Something like the Google IPO or Taser. How have you been investing? Thanks in advance Sat.

 

[browniehound]

I would suggest to max out a Roth Ira before the 401k......Unless your company has matching contribution.

The 401k might be our only retirement benefit left. The New England Teamster's pension fund is a huge question mark at best. Dito for social security. I'm thinking if your in your 30's its not too late to plan a secure retirement at 59.5 years old. I started investing at 28 but not nearly enough. My dream would be be the pre-tax max of 16K (I think), the 5% after tax max, the Roth or traditional IRA max (preferably the Roth) and then the pension or SS would not even be a concern to me.

It sounds easier than it is. If I or anyone could do this, just think how pretty we would be sitting. Add to that $25-$50/week in the UPS stock purchase (huge discount, think huge discount) program and now the grandkids can go to any college. I'd be willing to drive a piece of crap car and live in smaller quarters to make this happen.

Is there anyone on here that is making this happen now? I would love to hear your story if you are. It would make for a staisfying career at UPS if anyone is doing this. Anyone out there that is close?

 

[Jones]

I had both the pretax and post tax maxed out for a few years, but had to cut back due to circumstances beyond my control. Even then I probably would have been able to maintain it at that level if I didn't live in Northern Virginia. I'm creeping it back up now, currently at 20%. Hope to be back at the max by early next year.

 

[brownmonster]

It's a fine balance between socking everything away for the future and enjoying life now.

 

[satellitedriver]

Hey Sat, how's the self-manged account working for you?

Quite well.
Over the last 10yrs I have beat the S&P index by 250%.
I bought Google a little late. My gain is only 230%.
Mark West -( a MLP)- is up 117% and pays close to a 7% dividend.
Quality Systems is the best sleeper that I bought. It is up 473% since 2006.
I usually hold -(buy and sell)- 10 to 15 stocks and keep a 20% cash reserve for buying opportunities.
Dreyfus has lowered its trading fees in the self managed 401k account to $9.95 a trade.
I track my portfolio through Google Finance and they have great comparison charts and research tools.
BTW:
It ain't straight on gambling.
It is reading and researching, even when you are too tired to do it.