So you have something against making 100% on your investment immediately when you invest?
Geez, I knew somebody was gonna jump in this all starry-eyed. If you want to think that way, just go right ahead. I'm merely expressing MY opinion, which I'm an expert on.
First, consider some loose facts.
Most UPSers aren't even in the 401. What is it, about 20-22%? Somebody can and WILL correct this figure, I know.
Most people, not just UPSers, will not deduct more than their match. What? Everybody I know from ANY company that had a match, whatever it was, 3,6,7%, would only deduct exactly what that match was. If their company would match 3%, they would only take out 3% themselves, for example, leaving alot more to be taken out, if only they would have. Why? "I can't afford it!" What's this got to do with anything?
I think most, MOST, people are pretty narrow-minded when it comes to 401. Look at all the people that "lost" their 401 this last year. How? I didn't touch mine, just kept adding to it and the news said last week that most were probably back to pre-2008 levels. Did I lose? Hmmm...if I would've had to take it OUT I would have. Or if I got scared and moved it I would have, but, no, I didn't lose. Oh, YOU will say so because I could have had more in by now if it weren't for the big crash. But I don't view it that way.
Now, you say it's a 100% return on my investment if I get a match. What about the amount that I have to pay tax on NOW because I take a match? What if (rounding out) we max out at 16,000 but I only put in 8,000 and company matched 8,000? I lost out on tax-off-the-top of 8,000 I COULD have had if I'd been able to put the whole 16,000 in. In other words, I have to pay tax on an additional 8,000 of my money now, and pay tax on an additional 8,000 of their money when I take it out (sure, it will probably be in a lower tax bracket then).
MY view, again, MY VIEW, is that I'm being penalized if I take a match now. I'm in a 33-35% tax bracket and I want all the breaks I can get NOW and not be stifled. Later, when retired, I may be in a 15% bracket so then taxes will be a little easier to handle.
You wanna be nit-picky? Why not comment on what I also said about being in control of my investments. Like how companies, yes, UPS too, have a propensity of taking things away that aren't contractually binding. Like 401s for non-union people, FredEx for example. I just don't want that uncertainty. Some UPSF guys here, HERE, thought they were really skunked when they took away their match. It was almost a deal-breaker for them.
Well, I could go on and on, like how I don't want companies getting the tax breaks when I could be, how I don't want the gooberment playing with my money (anymore than they already do) when
I want to be the one playing with it, and so on and so on but you don't want to hear it.
Go on and keep thinking that way if you want. Your way is completely fine and legal, but for ME? Uh, uh!