Should I invest in stock?

[ArchWingz]

I remember I was told once from an HR that you could invest in the ups stock and earn some money? also even if the stock went down they said that you can sell the stock and get your money back is that true?

I don't make much so is it worth it?
my pay usually goes to $110-120

 

[Dagoof]

When I started I I put 10 dollars a week into it with the dividends being reinvested. Its not a get rich fast thing its more of a back up it just stays in there until I want to take it out. Just think of it as not eating out just one day a week. You wont miss it.

 

[ArchWingz]

thanks for the information and where do I go to apply for it? HR?

 

[moreluck]

The 20 greatest companies....

http://www.fool.com/investing/general/2011/03/01/the-20-greatest-companies-i-know.aspx

 

[TechGrrl]

I remember I was told once from an HR that you could invest in the ups stock and earn some money? also even if the stock went down they said that you can sell the stock and get your money back is that true?

I don't make much so is it worth it?
my pay usually goes to $110-120

ANY stock that is traded on the market can lose value; the recession took the stock market (AND UPS STOCK) down to about 50% of what it was worth before the market tanked due to Wall Street completely screwing the economy. Right now, the stock market (and UPS) have recovered, but it has been a roller coaster ride. Please go to Motley Fool and begin educating yourself on how the market works.

Having said all that, I still believe that UPS is a good long term investment, and it does pay a good dividend. For an investment strategy, you should put as much as you can into your 401K, and whatever you can into the Employee Stock Purchase. You are buying it at a 10% discount, by the way. Reinvest the dividends. Assume a LONG TERM buy and hold strategy.

I think there is a minimum you have to purchase, though, and I am not sure if you have enough to make that minimum.

 

[FAVREFAN]

I remember I was told once from an HR that you could invest in the ups stock and earn some money? also even if the stock went down they said that you can sell the stock and get your money back is that true?

I don't make much so is it worth it?
my pay usually goes to $110-120

I would say if you could afford $10 a week, put it into your 401(k).
Long term you'll be investing more diversified and building for your future with a tax deferred investment.
Much better option long term than UPS stock.
JMHO.

 

[UpstateNYUPSer(Ret)]

Techgirl, I believe the discount is only 5% now.

 

[packageguy]

Yes, discount is 5%, I do $35.00 week, when I retire, whatever is there is there. treat myself to a car or pay off college for the kids.

 

[728ups]

For many years I have put money in stock each week, rasing the amount each time we get a raise( i currently withold $130 a week)and it dosent take long for it to grow. For a solid long term investment i think it is great. The value has steadily increased as have the dividend shares. I also put an additional 5% of my gross into my 401K and have seen the value of it rise . you should invest a minimum of 10% of your pay each week!

 

[Re-Raise]

Techgirl, I believe the discount is only 5% now.

The purchase price for the stock was the lower of the two prices at either the beginning of the quarter or the end of the quarter. They took that advantage away also.

The price you pay now is 5% off the price at the end of the quarter

 

[The Blackadder]

If you are looking at UPS long term ie you are going to drive one day, I say put 10% into your 401K and 10 bucks a week into UPS stock.

If you do this as a younger person and go full time keep up the 10% at least and increase the UPS stock by the same %.

If I could do one thing over again I would put more money in early when I stated if you dont get used to it in the pay check you wont miss it.

Now if you really need the money now and really cant afford it then do what you need.

Also IRA's are nice if can open one do so, add as much as you can each year and forget about it until you retire.

My mom and dad gave me some good advice, your home is not an investment, dont play with it, plan like you are going to live to be 100, live like you will die tomorrow, ie no regrets.

 

[TechGrrl]

If you are looking at UPS long term ie you are going to drive one day, I say put 10% into your 401K and 10 bucks a week into UPS stock.

If you do this as a younger person and go full time keep up the 10% at least and increase the UPS stock by the same %.

If I could do one thing over again I would put more money in early when I stated if you dont get used to it in the pay check you wont miss it.

Now if you really need the money now and really cant afford it then do what you need.

Also IRA's are nice if can open one do so, add as much as you can each year and forget about it until you retire.

My mom and dad gave me some good advice, your home is not an investment, dont play with it, plan like you are going to live to be 100, live like you will die tomorrow, ie no regrets.

Excellent advice!

 

[hubrat]

The 5% is correct, and a two year hold is place on it now.

 

[CustomerConcern]

Even if you can put in $5 a week then do the DRIP (dividend reinvestment plan) that helps, then when you get a promotion or raise up your contribution a little more.

 

[FAVREFAN]

For many years I have put money in stock each week, rasing the amount each time we get a raise( i currently withold $130 a week)and it dosent take long for it to grow. For a solid long term investment i think it is great. The value has steadily increased as have the dividend shares. I also put an additional 5% of my gross into my 401K and have seen the value of it rise . you should invest a minimum of 10% of your pay each week!

November 1999 UPS stock went public........$76.87 per share high.........today real time quote $71.93......no splits. Loss of 6.4%. Dividend just covers inflation over that period. S&P 500 Since 11/01/1999 down-5.7% Dow Jones up 10.7% S&P400 up 138% Russell 2000 up 88% All stats pulled from MSN Money. Just to keep things in perspective.

 

[SmithBarney]

Nice thing about doing the ESPP(employee stock purchase plan) is that it is deducted pre-tax.
So say if you take out $10 dollars a week, it may only affect your take home pay by 7-8 dollars(depends on taxes in your area)

Also you asked how to sign up, I believe you can do it on the upsers.com site.(its been awhile since, so it might have changed)

 

[Re-Raise]

Nice thing about doing the ESPP(employee stock purchase plan) is that it is deducted pre-tax.
So say if you take out $10 dollars a week, it may only affect your take home pay by 7-8 dollars(depends on taxes in your area)

Also you asked how to sign up, I believe you can do it on the upsers.com site.(its been awhile since, so it might have changed)

You are wrong. The deductions are not tax deferred like deductions for a 401k.

The money in the DESP plan is after tax. When you sell your shares , at any age , after the 2 year waiting period you are only responsible for the taxes on the capital gain on the profit.

 

[UpstateNYUPSer(Ret)]

You are wrong. The deductions are not tax deferred like deductions for a 401k.

The money in the DESP plan is after tax. When you sell your shares , at any age , after the 2 year waiting period you are only responsible for the taxes on the capital gain on the profit.

...or you can write off the loss, up to $3,000, with any additional loss carried over to successive tax years until exhausted.

 

[brownmonster]

...or you can write off the loss, up to $3,000, with any additional loss carried over to successive tax years until exhausted.

Can you just claim a loss or does it have to be against gains from other shares? Kind of like gambling losses.

 

[satellitedriver]

You are wrong. The deductions are not tax deferred like deductions for a 401k.

The money in the DESP plan is after tax. When you sell your shares , at any age , after the 2 year waiting period you are only responsible for the taxes on the capital gain on the profit.

You are wrong.
The gains are taxed as capital gains and the discount you received will be taxed as normal income.
Each share you sell will be taxed on cost basis. then the math comes into play.