401k help?

Discussion in 'UPS Discussions' started by help, Feb 3, 2008.

  1. help

    help Guest

    im gonna start my 401K at 5-7% im 29 not yet at top rate for driving...what funds should i invest in? im green when it comes to this...i only wanna put $$into 1-3 funds to start...can anyone help?
  2. HazMatMan

    HazMatMan New Member

    Market is shaky right now, but the EAFE fund and the S&P 500 and 400 and Russell 2000, have done right by me in the last few years, but like I said the market has been shaky so please invest wisely.. P.S. I am NOT a stock broker, that is what I invested in, I am not telling you to do the same, just am telling you what I did well in.....Good luck!!
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    As I stated in an earlier thread on this subject, the 401K plan has what is called the Bright Horizon Fund, which is based upon your projected retirement year (2015, 2025, 2035, and 2045). This may be a good place to invest if your are uncertain about the process. I have 20% deducted each week in to the EAFE and S&P 400, which both seem to be doing well, or as well as can be expected during this shaky time in the market.
  4. 1989

    1989 Well-Known Member

    I got a letter the other day stating the 401K was looking for another investment manager to replace State Street becauce of the Bright Horizon funds.
  5. IDoLessWorkThanMost

    IDoLessWorkThanMost New Member

    I wouldn't invest in the Bright Horizons personally.

    I am 29 and started a year ago....putting 70% in S&P 400 and 30% in the International fund. I suggest Don't put money into too many funds. Try aggressive funds rather than stable low-interest ones. The S&P, EAFE, Russell 2000, REIT, are all more aggressive and can be higher yeilding than the stable, govt, etc. The details on the Teamster 401k web site has detailed .pdf files you can download and view to get a better basic understanding of what each fund entails and it's pros/cons.
  6. filthpig

    filthpig Active Member

    talk to a financial guy, but i've had good results in rough times with the bond index funds. When the economy is doing well, i'm in the s&p fund, with some in the bond fund for safety. just remember to keep up with the market, because if you don't you'll not only be losing on what you have you'll also continue to put money in the loser if you don't change your election.
  7. HazMatMan

    HazMatMan New Member

    I'm chilling in the Bond Market Index for now until Wall Street shapes up again.. Dow was down on Feb 4th 2008 over 100 points....
  8. 89upser

    89upser Guest

    Unless you're near retirement that's a poor investment idea, now's the time to be buying more of what you already have a better prices.
  9. beentheredonethat

    beentheredonethat Well-Known Member

    My help is to tell you to do your own research and invest in what you think is a good fund. Not sure about the Teamster\UPS 401K fund, but in the 401K for non union we have an option to do a self managed account. There's a few limitations such as keeping a minimum of 5K in the regular choices. With the self managed you can buy pretty much any mutual fund, ETF (Exchange Traded fund) or stock. I'm pretty sure they still don't allow you to buy puts\calls yet. With the SMA, it pretty much opens your choices to just about anything. I like'd this method myself since there seems to be a lot of other funds out there that do better then the limited choices offered.
  10. satellitedriver

    satellitedriver Moderator Staff Member

    You can do the same in the Teamster 401k self managed account, but it is for someone who knows something about investing, IMHO.
    I would suggest a novice just put their money into the S&P 500 fund ,while they are learning about investments.
    Dollar cost averaging into the market allows you to buy low when the market is down and conversely buy when it's high. The average return of the S&P, over time, has been in the 10 to 11% range.
    The S&P is the benchmark that all mutual funds try to beat and 80% of them fail to over the long run.
    ETF's/ REITS/Shorts/Pulls ect... are not for the inexperienced.
    Having said that, there is money to be made out there.
    Please, do your due diligence(fancy way of saying read a lot of boring financial data) before you invest.
  11. HazMatMan

    HazMatMan New Member

    Not even close to retiring...
  12. HazMatMan

    HazMatMan New Member

    Dow is down on Feb 5 over 300 points..
  13. satellitedriver

    satellitedriver Moderator Staff Member

  14. LeddySS98

    LeddySS98 Member

    I started mine right at 2 years ago, and put it in 4 different funds... As to date I've had the best luck with the EAFE international fund, and my losing horse is in the Russel 2000 fund.

    My options... If I were to change the 2000 fund over to the S&P500 and start investing in that fund... does the current 2000fund money get moved over into the 500 as well... am i looking at penalties here...better to just ride it out at this point....

    FAVREFAN Member

    The great W.B. says....."When everyone is panicing, you should buy and when everyone is buying, you should panic." You nailed it. Put everything in on these dips. Just my opinion.

    FAVREFAN Member

    The S & P 500 and Russell 2000 are long term investment vehicles. Don't be pulling out on the dips. You should be dollar cost averaging them right now. Stick with them long, long term. You'll get it all back and much more in time. Might be a long while with the slowing economy but you will profit.
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    As you can see from the above posts, you can ask 10 different people and you will get 10 different, but all valid, opinions. The only person who will know how much to invest and what options to invest in would be you. Only you know if you are aggressive or conservative, if you are able to withstand the constant roller coaster movements of the Dow, and if you are willing to stay in for the long haul. I would read all of the replies, take from those with whom you feel comfortable, couple that with your own gut feelings, and start your 401k, and don't look back. Good luck.

    (BTW, I didn't know about the concerns with the Bright Horizon Funds or I wouldn't have suggested them. They seem ideal in that you determine your projected retirement year and invest accordingly.)
  18. brownmonster

    brownmonster Man of Great Wisdom

    And that, my friend, is the biggest problem with 401K's as apposed to traditional pension plans. The average Joe doesn't have a clue about investing and he is responsible for securing his retirement. You can't take money out af a traditional plan to pay off a car or borrow a grand.
  19. satellitedriver

    satellitedriver Moderator Staff Member

    $01k's (not a typo) are better than most pension plans, if one cares about their financial future.
    It's your money and you should be able to access it/control it/ and take it with you to another workplace, if need arrives.
    I guess the traditional plan protects us from our own stupidity.
    The let "Big Brother" take care of me mentality,IMHO,is the biggest problem in personal financial planning.
    If the average Joe doesn't have a clue, he/she should invest their time in learning some very simple basics, and, if they chose not to try and secure their own financial future, well, "stupid is as stupid does".

    FAVREFAN Member

    How 'bout it. The average moron will spend more time programming his HDTV on any given weekend than on his financial future. I'm counting on myself and God. Not UPS or our pathetic war hungry government. You have to plan your own long term success. JMO.