A few questions...Retirement, driving and so on

[kingOFchester]

Been at the brown monster for a month now! What a hard job. I load package cars, but I also enjoy it, being that I have a great group of guys I work with INCLUDING the part time sups.

I plan on becoming a driver. I hear everyone talking about pension. Do my years as a part-timer get credited towards my years of service? Or is it 25 years of full time and my part time years go out the window?

I plan on trying to get on as a air driver, or Sat or even seasonal. Does that time get credited towards my top pay once i become a full time driver?

thanks

 

[UPS Lifer]

You will get credit for the hours you work. The more hours you work the more credit. You will have to become vested to collect. Get with your shop steward, so that you can find out the specifics for your local.

 

[Fnix]

Vested? You mean 401k?

 

[UPS Lifer]

Vested? You mean 401k?

The dictionary version is - legally entitled to a future benefit such as a pension.

Once you are vested - you get the benefit. You generally have to be in the plan for at least 5 years. You get the benefit based on how much it is worth based on the accumulated hours worked. The more hours and years you work the more you get. Some plans allow a lump sum distribution.

Retirement comes faster than you think. Prepare now and don't put all your eggs in one basket.

 

[Fnix]

The dictionary version is - legally entitled to a future benefit such as a pension.

Once you are vested - you get the benefit. You generally have to be in the plan for at least 5 years. You get the benefit based on how much it is worth based on the accumulated hours worked. The more hours and years you work the more you get. Some plans allow a lump sum distribution.

Retirement comes faster than you think. Prepare now and don't put all your eggs in one basket.

What are some ways I can prepare?

 

[satellitedriver]

What are some ways I can prepare?

Save money out of every check for retirement.
Max out your contribution to a Rothe IRA.
Max out your contribution to the 401k.
Stay out of debt as much as possible.
Start reading/learning about investing.(No get rich schemes)
Time and compounding interest are your best friend.
There are many different ways to invest, but if you do not save,you will not have any to invest.
Good Luck

 

[Fnix]

The only money I save is the $20 a week I put into my 401k.

 

[satellitedriver]

The only money I save is the $20 a week I put into my 401k.

Save till it hurts.

 

[moreluck]

If you're married, see if you can live on just one paycheck and stash away the other. That's how my hubby and I got the downpayment for our first home.

All varieties of soup & sandwich are healthy meals and cheaper on the grocery bill.....stash the savings away. Use coupons.

If you smoke, quit now and put that $$$$ away.

Drink bottled water? Stop it..... and get it from the tap....they do.

Don't eat out....pack a lunch.

Your car only needs to have 4 round tires and run and be safe.........you don't need the hottest thing off the line.

It's called a little sacrificing and most young adults today don't want to do that, but believe me, the pennies add up and it pays off in the end.

$10-$12 jeans at Walmart instead of $75 designer jeans.

 

[brownmonster]

Have your wife get a few extra partime jobs to go along with her fulltime one.

 

[satellitedriver]

Have your wife get a few extra partime jobs to go along with her fulltime one.

As long as she has all the washing, ironing and house cleaning done.
Not to mention, the three course dinner on the table at six.
Boy, I probably gonna get a spankin for this post.

 

[moreluck]

 

[Fnix]

The only payements I have now are

Car: $240
Car Insurance: $220
Gas: $100
Cable: $100
Rent: $200

Food, clothes, etc I dont buy and I'm still under $180 per month cause I make $680 and payments are $860

 

[FromBluetoBrown]

The only payements I have now are

Car: $240
Car Insurance: $220
Gas: $100
Cable: $100
Rent: $200

Food, clothes, etc I dont buy and I'm still under $180 per month cause I make $680 and payments are $860

I need to move to Florida if your rent is only $200 a month. I live in my parents basement and they charge me $500 a month

 

[Fnix]

I need to move to Florida if your rent is only $200 a month. I live in my parents basement and they charge me $500 a month

I could move out of my Moms and get a room in a rich community for $400.

 

[Griff]

I could move out of my Moms and get a room in a rich community for $400.

Making a mortgage payment is putting money towards your net worth, paying rent is a total loss. Owning real estate is a very big piece of the puzzle when it comes to retirement.

 

[brown bomber]

As long as she has all the washing, ironing and house cleaning done.
Not to mention, the three course dinner on the table at six.
Boy, I probably gonna get a spankin for this post.

try being a widowed dad w/ 2 teen-aged daughters...by the way I'm a full-time pkg. car driver...my wife passed away over 5 yrs. ago

you've shown a great deal of disrespect to folks who have to bust ass just to keep the family together

 

[helenofcalifornia]

Lots of good advice on how to retire from this company with enough money for a happy retirement. It sure helps though to have another full time income in the family to help pay those bills. Especially of you live in a high cost-of-living area (read east and west coast). If you live in one of those areas, it is hard to get ahead, especially if you have a house payment, with only a UPS income. The best advice given was do not get into credit card debt. And if you can, put more into the 401k. When the economy is roaring, the amount in your 401k goes up fast. Start thinking early about your retirement future and don't put it off until later.

 

[satellitedriver]

try being a widowed dad w/ 2 teen-aged daughters...by the way I'm a full-time pkg. car driver...my wife passed away over 5 yrs. ago

you've shown a great deal of disrespect to folks who have to bust ass just to keep the family together

No disrespect was intended.
It was a poor attempt at humor.
I truly apologize if you took that post seriously.
I also am sorry to hear of your loss.
PAX

 

[UPS Lifer]

What are some ways I can prepare?

Moreluck and Satellitedriver came up with great advice...to help with Moreluck's points...
physically write down every penny you spend for a week (better yet a month) and see where it all goes. Example - I was eating out everyday at a cost of about 7 to 10 dollars. I started to bring in a Lean Cusine in and my savings were dramatic. I went from eating out everyday to 2 or 3 times a month.

Analyze your results and look at the ideas that Moreluck put down.

Also leveraging your money is another way to improve your position faster than just compounding. This can be risky but the payoff can be enormous.

Please consult a professional but this is how you can leverage your money.
This is a very simple Example:

1) You take $10,000 and put it into a CD at 5%. Next year you have $10,500. You made $500

or you cal leverage your money
2) You take the $10K and put it down on a peice of property that you bought for $100,000. You make the same 5%. You sell the property to net you $105,000. You just made $5000 on your initial investment or $10,000. This is a 50% gain!!!

Obviously this is just a simple example of how leveraging works but many people over a period of years have made a lot of money.

Also...be careful, if you over leverage your assets you can lose everything if something goes wrong. Helen's example of credit card debt is the great example of overleveraging.
There are a lot of books on investing strategies.

I will give you 2 books to pick up and read.

The first is by Donald Trump - "The Best Real Estate Advice I Ever Received" - my brother's has a chapter starting on page 222.
(100 top experts share their strategies)

The second is by Daniel R Solin - " The Smartest Investment Book You'll Ever Read" - (there are a lot of different investment strategies in here - this will help you gain knowledge)

Both these books are easy reading and short! Take a highlighter just like you would with a text book and pull some key points out and write them down.