How much $ do you put in 401k? - Brown Cafe

Fnix · 01-01-2008, 03:32 PM

What percent and what cash amount do you have on average taken out of your paycheck towards 401k? for me it's %10, $20 per week. I would like to know how much you senior 25+ year plus drivers have in it.

Ms Spoken · 01-01-2008, 04:10 PM

Every year when we get a raise I always try to up my 401K so I never really miss any money. My current 401K is at 20% per week. Now if I can only make it to retirement life will be good.

HAPPY NEW YEAR EVERYONE

Jack4343 · 01-01-2008, 04:17 PM

I'm at 6% of my gross pay. I'd like to do more but I really need the money right now. I'm a bit behind on a couple of bills so I need the rest. I'm 37 and I hope to increase the percent to 10% by the time I'm 40 and at least 15% by the time I'm 50. I know that it won't be enough since I just started the 401K at age 35 (started at UPS at age 31) but I also throw $30 a week to UPS stock so that will help as well. I know the stock has stayed steady all year long but it's a guaranteed 10% return on my investment provided that the stock doesn't tank. It could, but if it does I'll have alot more to worry about than just that invested money.

old brown shoe · 01-01-2008, 04:30 PM

You have to remember that UPS 401K plan was not around for many years. We use to have what they called a Thrift Plan. You could only put $6 a week into it. That is only $240 a year. It did have some great years in interest that it earned but took a long time to grow. Then when UPS went public they ended that plan. You could cash it out or buy UPS stock with it. That is when the 401K plan started. After that the stock split and for the ones who bought the stock did good. (since then stock has not done much but pay a dividend) I put $150 a week into my 401k. It is hard at times but if you took the cash after tax it would only be about $90. You grow money like that until the age of 62-65 and you will have a chunk of cash even though you are to old to really have fun with it lol.

therodog · 01-01-2008, 04:40 PM

After 20 Years with UP$, I just started my 401K, i do 1%, and just started it last year. I didnt want EX-Wife to get it....Did something right in my life...lol

IDoLessWorkThanMost · 01-01-2008, 04:41 PM

I started last January, and I'm 29 years old. I have put 60$ a week in on average, up to 2,600$. By 40 y/o my goal is $100,000.

upsr99 · 01-01-2008, 05:12 PM

I put 25% in and with 10% contribution for over 50 adds up to $17700 for 2007.

pkgdriver · 01-01-2008, 05:19 PM

25% also. Have had it pretty much maxed out since it started. Max a few years ago was 17% I think.

The thrift plan did pretty well and I put that into UPS stock.

scratch · 01-01-2008, 05:22 PM

Quote:

Originally Posted by Ms Spoken

Every year when we get a raise I always try to up my 401K so I never really miss any money. My current 401K is at 20% per week. Now if I can only make it to retirement life will be good.

HAPPY NEW YEAR EVERYONE

Ms Spoken has the right idea, I hope that I can get there some day. I am embarrassed to admit that I didn't join it until a year ago, starting at 7%. I do have some Mutual Funds and an IRA I started back with the IPO when UPS Stock went public. I haven't bought any UPS Stock since, the Mutual Funds seem to do better. I started with putting money in the Russell 2000 Fund, but I stopped that a couple of months ago. The S&P 400 and EAFE International Funds are doing better, thats where I am now. I am going to increase my contribution amount this week. I am pretty much the only one working in my household, my wife is legally blind with RP and only works PT. If you are able to put 20% in the 401K, I would do it.

UpstateNYUPSer · 01-01-2008, 05:25 PM

I am starting to focus once again on my 401k as the last of the loans that I took out to help pay for my children's college was just paid off. I took out 8 loans during their school years, with each loan 1 year in length (some of the loans overlapped). I am at 15% w/$45k. The tax benefits are outstanding, as the amount that you have withheld comes right off of your gross income and thus lowers your taxable income. I also adjust my withholdings to ensure that my take home pay remains stable and I have just enough taxes withheld so that I do not have to pay in. I hope to increase it to 25% by age 50 (4 yrs) and also hope to take advantage of the additional $5k in "catch-up" contributions allowed by law. My plan is to have at least $100-150k in my 401k by the time I retire. I will couple that income with my expected $6k/mo pension (less 16% to the ex) and Social Security, which will make up for the 16% in lost pension.

olbrownmare · 01-01-2008, 05:58 PM

401(k) started in early or mid '80s, when Thrift plan was still around. I started off putting in only 3 or 4% but tried to increase it whenever I could. Like others, I found I never missed it when I increased it. I've been maxing it out since about '93 - by percent which used to be max of 15, or $$ last few years. It's now around $350k. The young employees reap the biggest benefit for putting in even a little money each year, because of all the years of compounding.

brownmonster · 01-01-2008, 06:05 PM

401k was around long before the stock went public. I've been contributing for 18 years. Was up to 190 grand last time I checked. Been a pretty painless way to accumulate a chunk of money. I'm down to 8% per week now.

upsgrunt · 01-01-2008, 06:06 PM

Quote:

Originally Posted by UpstateNYUPSer

I am starting to focus once again on my 401k as the last of the loans that I took out to help pay for my children's college was just paid off. I took out 8 loans during their school years, with each loan 1 year in length (some of the loans overlapped). I am at 15% w/$45k. The tax benefits are outstanding, as the amount that you have withheld comes right off of your gross income and thus lowers your taxable income. I also adjust my withholdings to ensure that my take home pay remains stable and I have just enough taxes withheld so that I do not have to pay in. I hope to increase it to 25% by age 50 (4 yrs) and also hope to take advantage of the additional $5k in "catch-up" contributions allowed by law. My plan is to have at least $100-150k in my 401k by the time I retire. I will couple that income with my expected $6k/mo pension (less 16% to the ex) and Social Security, which will make up for the 16% in lost pension.

6,000 pension? Do you work for the same company I do?

bad company · 01-01-2008, 06:20 PM

When I was in management (pt), I used to only invest the maximum amount UPS would match. Now that I am an hourly (ft) and dont get a match, I am investing the pre-tax maximum. I also have a roth IRA. It's not easy though, especially since I'm on the extreme low end of the progression scale being an outside hire. Good thing I'm still in "broke college student" mode and still have a diet that is dependant on Ramen Noodles. I'm only 22 so I have a long way to go until I retire

. I figure once I get a family and "real" expenses (house, kids, etc...) I'll have to tone it back down to about 15%.

pkgdriver · 01-01-2008, 06:23 PM

Teamster-UPS 401(k) was started in 1988 I think

toeknee2gx · 01-01-2008, 07:01 PM

Quote:

Originally Posted by bad company

When I was in management (pt), I used to only invest the maximum amount UPS would match. Now that I am an hourly (ft) and dont get a match, I am investing the pre-tax maximum. I also have a roth IRA. It's not easy though, especially since I'm on the extreme low end of the progression scale being an outside hire. Good thing I'm still in "broke college student" mode and still have a diet that is dependant on Ramen Noodles. I'm only 22 so I have a long way to go until I retire

. I figure once I get a family and "real" expenses (house, kids, etc...) I'll have to tone it back down to about 15%.

I feel ur pain...

01-01-2008, 07:38 PM

Quote:

Originally Posted by old brown shoe

. . .We use to have what they called a Thrift Plan. You could only put $6 a week into it. That is only $240 a year. . .

Hmmm . . . New Year's Eve celebrating and Math apparently don't mix!!!

coldworld · 01-01-2008, 07:48 PM

Quote:

Originally Posted by UpstateNYUPSer

I am starting to focus once again on my 401k as the last of the loans that I took out to help pay for my children's college was just paid off. I took out 8 loans during their school years, with each loan 1 year in length (some of the loans overlapped). I am at 15% w/$45k. The tax benefits are outstanding, as the amount that you have withheld comes right off of your gross income and thus lowers your taxable income. I also adjust my withholdings to ensure that my take home pay remains stable and I have just enough taxes withheld so that I do not have to pay in. I hope to increase it to 25% by age 50 (4 yrs) and also hope to take advantage of the additional $5k in "catch-up" contributions allowed by law. My plan is to have at least $100-150k in my 401k by the time I retire. I will couple that income with my expected $6k/mo pension (less 16% to the ex) and Social Security, which will make up for the 16% in lost pension.

How many of you think that ups will start to deduct the amount we will get from social security from our pensions in a future contract. Wasnt this idea "floated around" during the latest talks? Is this legal? Doesnt seem very fair, we pay into social security and yes, so does ups but we should be able to get both amounts since we work the long hours.

coldworld · 01-01-2008, 07:53 PM

Quote:

Originally Posted by scratch

Ms Spoken has the right idea, I hope that I can get there some day. I am embarrassed to admit that I didn't join it until a year ago, starting at 7%. I do have some Mutual Funds and an IRA I started back with the IPO when UPS Stock went public. I haven't bought any UPS Stock since, the Mutual Funds seem to do better. I started with putting money in the Russell 2000 Fund, but I stopped that a couple of months ago. The S&P 400 and EAFE International Funds are doing better, thats where I am now. I am going to increase my contribution amount this week. I am pretty much the only one working in my household, my wife is legally blind with RP and only works PT. If you are able to put 20% in the 401K, I would do it.

Scratch, not trying to get too personal but will you have your house payed off by the time or a few years after you retire? This seems to be the big one, because if you do or have a limited amount left, things will be much easier and you might not need as much in retirement funds.

packagestud · 01-01-2008, 08:06 PM

How much you have withheld for your 401k depends on your personal situation. First, I would recommend making a budget of your expenses. You need to know how much you spend a month and where it is going. If you are waisting money in an area where you can cut back do so and put the savings in the 401K. Put in enough until it hurts or as some say pay yourself first. The more you can invest at an early age the better because of compounding interest. I have invest from the beginning and have over $300,000.00 even after putting two kids through college.
Good Luck

Cementups · 01-01-2008, 09:55 PM

I have 10% total taken out every week. 7% is pre-tax and 3% after tax. I only did that so that if there is ever a time that I am crunched for money I can tke that 3% out without penalty. I don't NEED the money now but it's nice to know that it's there if something were to happen that I do.

I never started my 401k though till I was 30 and already at UPS 12 years. Alittle late but hpooefully not too late. I am acutally going to stop contributing to the 401k and contribute my money elsewhere. Since there is no matching I would be better off with other options that my financial advisor has put in front of me.

Baba gounj · 01-01-2008, 10:04 PM

I put in 17% back in the 90's along with buying ups stock but I've cut back.
Seems that all my funds were going into my future & I didn't have enough left to cover my bills.
Today about 7% , it's well above $200,000. I try to keep it within 4-5 funds.
If you're just starting out try to keep it in only 1-2 funds until it really grows, then you can spread it around.
Never....Never....never try to day trade with your 401K. One wrong move & it can all be gone.

FAVREFAN · 01-01-2008, 10:18 PM

25% here. Part-timer but man does it add up over the years. Feel sorry for those still buying the UPS stock and not putting that $ into their 401(k) Peace out.

beentheredonethat · 01-02-2008, 06:38 AM

I've been both good and bad with my 401K. I started pretty much as soon as I could. I'm only contributing 6% but have it scheduled to go up by 2% each year when I get a raise. Fortunately due to starting early, I'm up to 260K in my 401K. I have for the last few years been mainly doing the SMA option in the 401K. I bought a lot of mutual funds and some stocks. Mostly funds that invest in China and Latin America. My return last year was about 35%. I'm usually not that lucky though. My goal is to retire by at least 59 without the need of a pension. If there's still one there for me great, if not I hope to not need it.

raceanoncr · 01-02-2008, 07:02 AM

Started out late due to divorce and having to pay her an exorbitant amount of $ per month til some other doofas married her.

Started at 7% but quickly raised it as I found out I could live with less per check. Last few yrs, have maxed it out. Found out in my case that 18% works well cause last 1,2 maybe 3 months of yr the yrly total was maxed (used to be around $14,000, now $15,000) and my weekly checks were, of course, more cuz of no 401 taken out. Sweet! Like getting bonus every peak.

Weekly $ decuction is about 350-400, depending on how my the weekly gross is.