Anyone out there drawing a monthly stipend from their Teamster/UPS 401K?

[Catatonic]

What is the advantage of moving the money to an IRA vs leaving leaving it in the 401k?

I am considering moving from 401k to IRA in order to take advantage of other investment vehicles.
But then, I've been mulling it over for a year.

If you have an outside investment agency (like @UpstateNYUPSer does) it can get you lower management fees.

 

[Catatonic]

If I take the full amount she gets half. I can choose a 75% or 100% option and that would reduce my pension.

My wife gets full amount if I die before her ... it was a little over $1,000 less per month.
But Pension is about 1/4 of my monthly income so it didn't really matter that much to me.
Management pension ... she gets 50% unless she signs a waiver and the monthly amount is still reduced at 50%.

 

[IVE GOTTA PACKAGE 4U]

I am considering moving from 401k to IRA in order to take advantage of other investment vehicles.
But then, I've been mulling it over for a year.

If you have an outside investment agency (like @UpstateNYUPSer does) it can get you lower management fees.

Check out Vanguard

 

[Catatonic]

Check out Vanguard

Agree!
That's where my other 2 IRAs are.
Hard to beat Vanguard.

The only problem with Vanguard is I use Vanguard tripods for photography and I get their e-mails mixed up.

 

[IVE GOTTA PACKAGE 4U]

Agree!
That's where my other 2 IRAs are.
Hard to beat Vanguard.

The only problem with Vanguard is I use Vanguard tripods for photography and I get their e-mails mixed up.

Some of Vanguard funds did fantastic. Way better than the S&P

 

[oldngray]

Some of Vanguard funds did fantastic. Way better than the S&P

I love their Admiral funds. Higher min balance required but extremely low costs.Pick the right ones and you can beat the S&P. Although S&P index funds are still good.

 

[IVE GOTTA PACKAGE 4U]

I love their Admiral funds. Higher min balance required but extremely low costs.Pick the right ones and you can beat the S&P. Although S&P index funds are still good.

Some of my funds are Admiral shares.

 

[brownmonster]

That's a pretty good deal, in ours if you take the full amount your spouse gets nothing if you die.

If I'm dead, who cares.

 

[Ms.PacMan]

There are no RMD's on the Roth 401k or. Roth IRA because the money has already been taxed. You will have RMDs on regular IRA's and a regular 401k.

Pros:The fees in the 401k are lower than Vanguard (and were lowered again earlier this year) and the index funds are excellent.

A 401k is safe from lawsuits (and maybe bankruptcy) but an IRA is not.

Can withdraw without penalty if you quit at 55.

Cons:Only index funds (which isn't a con for me but others seem to think it is).

 

[Ms.PacMan]

FIRECalc: A different kind of retirement calculator

Try this calculator. Start on the first page and then use the tabs along the top to make adjustments.

 

[DriveInDriveOut]

There are no RMD's on the Roth 401k or. Roth IRA because the money has already been taxed. You will have RMDs on regular IRA's and a regular 401k.

Roth 401ks have a RMD. I wasn't aware of it either til Gumby mentioned it.

 

[IVE GOTTA PACKAGE 4U]

There are no RMD's on the Roth 401k or. Roth IRA because the money has already been taxed. You will have RMDs on regular IRA's and a regular 401k.

Pros:The fees in the 401k are lower than Vanguard (and were lowered again earlier this year) and the index funds are excellent.

A 401k is safe from lawsuits (and maybe bankruptcy) but an IRA is not.

Can withdraw without penalty if you quit at 55.

Cons:Only index funds (which isn't a con for me but others seem to think it is).

How a Roth 401(k) is Different than a Roth IRA | Ed Slott and Company, LLC

 

[oldupsman]

That's a pretty good deal, in ours if you take the full amount your spouse gets nothing if you die.

Same here.

If I take the full amount she gets half. I can choose a 75% or 100% option and that would reduce my pension.

I'm trying to understand what you're saying. Example. Lets just say your full pension is $3000 a month. Are you saying that you can collect
$3000 a month now and if you pass she gets $1500? But if you choose the 100% option you would only collect $1500 a month now and if you pass
she could continue to collect $1500 herself.

 

[Jones]

FIRECalc: A different kind of retirement calculator

Try this calculator. Start on the first page and then use the tabs along the top to make adjustments.

I like firecalc (got it bookmarked) but the interface isn't exactly intuitive. If you want a calculator that's a lot simpler but uses the same algorithms try FireSim.

 

[IVE GOTTA PACKAGE 4U]

Same here.

I'm trying to understand what you're saying. Example. Lets just say your full pension is $3000 a month. Are you saying that you can collect
$3000 a month now and if you pass she gets $1500? But if you choose the 100% option you would only collect $1500 a month now and if you pass
she could continue to collect $1500 herself.

You have different pension options when you retire. If you want to protect a percentage for you spouse it will cost you some of your pension money they you receive. Basically it's like an insurance policy.

 

[brownmonster]

Same here.

I'm trying to understand what you're saying. Example. Lets just say your full pension is $3000 a month. Are you saying that you can collect
$3000 a month now and if you pass she gets $1500? But if you choose the 100% option you would only collect $1500 a month now and if you pass
she could continue to collect $1500 herself.

Allow me to explain using the $3000 example. If I take the 3k a month she will automatically receive 50% of that if I die. If I chose the 75% option my pension would be reduced by 4% to $2880 and she would get 75% of that if I die. If I choose the 100% option my pension is reduced by 7% to $2790 and if I die she would continue to get that amount. There is also a pop up feature on the last 2 options. If she should die first my pension would pop back up to the original $3000.

 

[Ms.PacMan]

How a Roth 401(k) is Different than a Roth IRA | Ed Slott and Company, LLC

Thanks for showing me that article. Ive never read that. I also dont have a roth 401k.

 

[Jkloc420]

Thanks for showing me that article. Ive never read that. I also dont have a roth 401k.

hi beautiful

 

[Ms.PacMan]

I like firecalc (got it bookmarked) but the interface isn't exactly intuitive. If you want a calculator that's a lot simpler but uses the same algorithms try FireSim.

Oh i like that calculator!

 

[IVE GOTTA PACKAGE 4U]

Thanks for showing me that article. Ive never read that. I also dont have a roth 401k.

Very few gave heard of it. That's why I don't have a Roth 401k. I do have a Roth IRA