ups savings investments

[TearsInRain]

i'm currently putting 35% of my pre-tax into the ups stock fund for lack of a better idea, but would like to move it to something better performing

would bright horizon 2040 or s&p 500 be better bets? or both?

any other advice highly appreciated

 

[UpstateNYUPSer(Ret)]

The Bright Horizon 2040 is basically a "401k for Dummies". I don't mean that in a bad way as I am 100% in the Bright Horizon 2025. I simply mean that you don't have to do anything when you invest in one of the BH funds.

I assume you chose the 2040 as that is about the year that you will be retiring. If you want to be more aggressive you can choose the 2045 or higher----if you want to be more conservative you can choose the 2035 or lower. You are young so I would go with the more aggressive fund. 2050 is the highest BH fund available and thus would be the most aggressive. You can always transfer your funds as more BH funds become available and can then transfer to a less aggressive BH fund when you are closer to retirement.

2040---I will be 79 years old.

 

[Mapp]

Need to diversify investments. UPS pays your salary and pension (if have one). You'll get S.S. from the U.S. along with your pay. I get UPS match but thats it. 40% of my 401 is invested in foreign countries. 10% REIT. Rest is spread out between target retirement date and other U.S. options.

 

[UpstateNYUPSer(Ret)]

BH funds are diversified.

 

[packageguy]

honestly, you should sit with a finanacial planner and tell him where you want to be, by 2040. everybody has different needs

 

[brownmonster]

I put my retirement funds 100% into Iraqi Dinars.

 

[texan]

I put my retirement funds 100% into Iraqi Dinars.

You make me laugh. Thanks

 

[texan]

i'm currently putting 35% of my pre-tax into the ups stock fund for lack of a better idea, but would like to move it to something better performing

would bright horizon 2040 or s&p 500 be better bets? or both?

any other advice highly appreciated

I would hate to share advice, then 5 years from now have you mad at me.

I put some in the 2020 and the 2030 as that is closer to my hope of drawing on it.

The 2020 and 2030 seem to have good returns. Not that the 2040 would not.

It depends on your age and how much longer your date is to draw from it.

 

[kingOFchester]

Don't overlook other ways to save for retirement. Cut back on spending. Go out to dinner less often. Forgo the new car. Cut back on your cable bill. Go to a BYOB instead of paying for over priced drinks. Buy in bulk. Change some of your groceries to generic brands. Shop around for gas. Plan your menu for the week after seeing what is on sale. Trim your cell phone bill. Make sure you turn off all lights in a room not being used. Turn your thermostat down a few degrees in the winter, and up a few degrees in the summer. Keep up on all maintenance on your house and auto to avoid major repair bills. On and on you can go.

If you can save and extra $10 twenty times a month, you could put an extra $2,400 a year into your retirement.

If at the age of 25 you put the extra $2400 a year into an IRA (excluding your 401k) and got a respectable average annual return of 6%, when you reach 65 that account would be worth $371,428.72. That would be in addition to what ever you have saved in your 401k.

I currently max out my 401k, and also put away money into a scottrade IRA account. YTD I am up 14%

 

[Necropostophiliac]

Don't overlook other ways to save for retirement. Cut back on spending. Go out to dinner less often. Forgo the new car. Cut back on your cable bill. Go to a BYOB instead of paying for over priced drinks. Buy in bulk. Change some of your groceries to generic brands. Shop around for gas. Plan your menu for the week after seeing what is on sale. Trim your cell phone bill. Make sure you turn off all lights in a room not being used. Turn your thermostat down a few degrees in the winter, and up a few degrees in the summer. Keep up on all maintenance on your house and auto to avoid major repair bills. On and on you can go.

If you can save and extra $10 twenty times a month, you could put an extra $2,400 a year into your retirement.

If at the age of 25 you put the extra $2400 a year into an IRA (excluding your 401k) and got a respectable average annual return of 6%, when you reach 65 that account would be worth $371,428.72. That would be in addition to what ever you have saved in your 401k.

I currently max out my 401k, and also put away money into a scottrade IRA account. YTD I am up 14%

Excellent post and advice.
It is sound council for those nearing retirement to practice ahead of time.

Habits are hard to break.

 

[moreluck]

It's easy to cut down on eating out. The food gets worse & worse each year and the portions smaller & smaller . It ends up that your home cooking tastes great.

I also like a good bargain !!