401 k

Discussion in 'UPS Discussions' started by Mo19072, Mar 31, 2020.

  1. Mo19072

    Mo19072 Member

    Do all 401k plans offer compounded interest earnings or does it depend on where your money is invested?
     
  2. You mean like a savings account?
     
  3. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    The basic premise of a 401k, or any retirement plan, is compound interest.

    Now, the degree to which that interest is earned does depend upon where your money is invested. Safer investments provide a steady yet less impressive return than those with more aggressive investments; conversely, losses may be greater in more aggressive investments.
     
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  4. upschuck

    upschuck Well-Known Member

    Yes, they all do.

    Do you know what compound interest/dividends is?
     
  5. Grey

    Grey Active Member

    Isn’t the 401k basically a non-matching savings account?
     
  6. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    Uh.....nope.
     
  7. upschuck

    upschuck Well-Known Member

    401k generally deals in stocks and bonds with some can do precious metals. Savings account give miniscule growth comparably.
     
  8. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    Our 401k has a Self Managed Account (SMA) which lets you buy and sell stocks. I made a bundle on Apple. I also lost a bundle on Enron.
     
  9. Mo19072

    Mo19072 Member

    Really? Who’s your broker? I’m with prudential.
     
  10. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    It's a feature within the Prudential 401k. You act as your own broker for those transactions.
     
  11. Mo19072

    Mo19072 Member

    Couldn’t do stocks. All index funds
     
  12. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

    Plan highlights

    Scroll down to Self Managed Account.
     
  13. ManInBrown

    ManInBrown Well-Known Member

    No. It’s basically a place to hide your money so Uncle Sam doesn’t take it all.
     
  14. It's a place for you to systematically put money in for the long term so you have money available when you retire
     
  15. if you want to buy stocks don't waste your time with the 401k open up an IRA somewhere else. I use Vanguard and I pay zero commissions on buying or selling any stocks bonds , ETFs or CDs
     
  16. brownmonster

    brownmonster Man of Great Wisdom

    So your commissioners work for free? Tell that to Goddell.
     
  17. dudebro

    dudebro Well-Known Member

    My 401k is now a 201k.
     
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  18. I might start a go fund me page.
     
  19. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Please talk to a professional
     
  20. ManInBrown

    ManInBrown Well-Known Member

    And this also