401k

I'm new to UPS & was reading up on the benefits. It looks like the 401k for me (p/t pkg nandler) has no match. Can some one give me the advantage of signing up for this when I can just set up an IRA & have more investment options? Thanks
PS I know about the before-tax/after-tax thing, but I'll probably do a Roth since I'm in such a low tax bracket. I just don't see the upside of a non-match 401 but I might be missing something

[Ms Spoken]

It really depends on how long you plan on staying at UPS. When I was PT I started out with a small % going into my 401k but, now that I'm a driver I'm almost maxed out on my % and my $$$ is growing. Every Aug. 1st I raise my % due to our raise. My thought was that if I didn't go ahead and have a deduction taken out of my check I would never discipline myself to set anything up for my retirement.

[toeknee2gx]

Originally Posted by Muttley45

I'm new to UPS & was reading up on the benefits. It looks like the 401k for me (p/t pkg nandler) has no match. Can some one give me the advantage of signing up for this when I can just set up an IRA & have more investment options? Thanks
PS I know about the before-tax/after-tax thing, but I'll probably do a Roth since I'm in such a low tax bracket. I just don't see the upside of a non-match 401 but I might be missing something

u can contribute wayyyyyy more into your 401k than you can contribute to an IRA...

If you decide to go management, they will match your contributions

[scratch]

Muttley45,
If I were you, I wouldn't worry about joining the 401K right now. You should work a while and decide if UPS is a place that you want to work for a long time. You have to be 59 before you can draw money out of a 401K. It is very commendable that you want to plan for your retirement at an early age. You will retire wealthy if you can discipline yourself now to put a little away every week. I would look at other investment options, maybe something you can take with you if you decide to change careers in the future.

[Cementups]

go get finacial advisor and let them help you. most offer their services for free. mine does.

[beentheredonethat]

Originally Posted by Muttley45

I'm new to UPS & was reading up on the benefits. It looks like the 401k for me (p/t pkg nandler) has no match. Can some one give me the advantage of signing up for this when I can just set up an IRA & have more investment options? Thanks
PS I know about the before-tax/after-tax thing, but I'll probably do a Roth since I'm in such a low tax bracket. I just don't see the upside of a non-match 401 but I might be missing something

As other people mentioned the advantage is ease of use by having money taken directly out of your check on the 401K. However, as you mentioend if you are in a low tax bracket already, the Roth is probably a better investment for you. Any advice you can get from a professional would be worth listening too. If you start saving for retirement when you are young, it's a lot easier since you'll have time and compounding interest on your side.

[JustTired]

If you're full time, who needs a 401k? Just take the extra $15,000-20,000 you make in overtime and stick it in the savings. If you need it tomorrow, you can get it without penalty. And if the stock market goes down the tubes (highly likely at some point), you won't feel so bad.

Remember...if somebody is making money in the stock market, somebody else is losing. Most likely Central States!!!

[defcon4]

My Dad is a Financial Analyst and he says the following:

There is a limit as to how much you can invest in a Roth IRA every year and you have to be in a lower tax bracket to be able to invest in one, but this is the BEST retirement investment you could have. Put the maximum you are allowed into a Roth IRA every year FIRST. (obviously since you're p/t package handling, just put whatever you wanted to invest in, you don't have to make the maximum investment).

After putting as much as you can into a Roth IRA, then take the rest of your investment cash and put it into a 401(k). (If your employer, UPS, offers any kind of matching, THEN put $ in a 401(k) first, since us part-timers don't get matching, we should invest in a Roth first). If you did decide to change careers, you can transfer your 401(k) at UPS into a Traditional IRA (which is basically a 401(k) that's not attached to a company). Then when you get a new job, you can transfer your traditional IRA into the new company's 401(k) plan. This is required by federal tax law. So don't worry about putting $ into a ups 401(k), but you should put as much as you can/want into a Roth First, the long term tax advantages REALLY ADD UP$$$$$$$$!

[brett636]

An IRA may have more investment options, but you can only contribute $3k/yr. unless your over age 50 and then you can contribute $4k/yr. With a 401k the max you can contribute is probably more than you will make as a parttimer in your first year. I know some of these people are saying wait and see if you want to work at UPS before you start your 401k and I couldn't disagree more. The earlier you start saving the better off you will be. Remember that compounding interest is your friend, and even if you don't stay with UPS your 401k can be moved over to an IRA or a future employer's 401k later on. Just remember that with UPS's 401k if you have less than $3500 in it and you quit you have 30 days to move it somewhere before they close the account and send you the money. That is something you don't want to happen because you will owe taxes on that money plus a 10% penalty to the IRS. Make sure you rollover whatever you have into a different plan within that time frame. IF you have over $3500 in it you can let it sit until you decide to roll it over to another plan or just levae it there till retirement. Just remember to start as early in life as you can!

[HazMatMan]

Russell 2000, S&P 400, EAFE fund. great returns on these 3 funds since January, for me personally...

[Cementups]

UPS does not offer 401k to it's FT employees. Our 401k is offered thru Teamsters and there is NO match whatsoever. Cheap bastards.