DESPP change

[UpstateNYUPSer(Ret)]

If you have that much free money that you can play the stock market to that extent don't you think it may be time to move out of Mommy and Daddy's basement? I do hope that you are at the very least paying room and board.

 

[I GOT ONE MORE]

Only my opinion, but I believe the gloom is far from over. Perhaps another year, who knows. It all started with housing and it will end with housing. The bubble is popping and when home values become more relatively aligned with incomes, the floor will establish itself and inventories will get back to 4-6 months. Home values were so far out of whack, I mean, who the heck could really fathom what your house could have fetched in 2006.

I put all my 401k in bonds in March 2008 (have not made any money, but have not lost any) and I cancelled my contributions in October to focus all money on debt elimination. That goal will be attained in July. No payments of any kind except my mortgage and a solid pile of cash savings for a cushion.

Just last week I cancelled my DSEPP participation because of the recent changes to the program making it MUCH less attractive.

In July, I will resume retirement saving with a vengeance, but I will begin with a ROTH IRA up to the annual maximum, then return to the UPS/Teamster 401k, due to the contributions being non-matched. I've come to realize that Roths are far superior for retirement than non-matching 401k's, for that reason and the virtual unlimited allocation choices.

Anyway, that's my 2 cents........ good luck to you and yours.

 

[mathematics]

If you have that much free money that you can play the stock market to that extent don't you think it may be time to move out of Mommy and Daddy's basement? I do hope that you are at the very least paying room and board.

not that it's any of your business, but i'd rather save as much as i can to purchase a home rather than renting just to say that i moved out. besides, you don't even know my age...

 

[1989]

You can get a 5% discount today by writing a May $50 put. Or a 2.2% return on your money if you don't end up owning the shares. Not a bad return for 12 days. (10 business days)

 

[helenofcalifornia]

1989, could you translate the above for those of us that are not as Wall Street savvy as you? A 2.2% return in 10 days on $50 of what stock?

I have always thought that Cheryl should add a financial page to this site for the benefit of the many who don't know, or need advice, on their financial future at UPS.

 

[1989]

1989, could you translate the above for those of us that are not as Wall Street savvy as you? A 2.2% return in 10 days on $50 of what stock?

I have always thought that Cheryl should add a financial page to this site for the benefit of the many who don't know, or need advice, on their financial future at UPS.

This morning when UPS was trading at $51.71 you could have sold a May $50 put for $110 (that means you would be obligated to buy 100 shares at $50 anytime before expiration) Your cost would be $48.90 a share if the shares were put to you. If at expiration the stock price is above $50 you would keep the $110. You made $110 on the $4890 you put up to fill your potential obligation.

Options typically expire on the 3rd Friday of the month. So on May 15th you would either own 100 shares of UPS at a 5.5% discount from the $51.71 price or made 2.2% return on the $4890 you put to risk.

 

[Braveheart]

I thought the rule of the lower or lowest price during the quarter was fair and made for good cost averaging. 10 % no bad.

5% = no thanks. Making us pay the price at the end of the quarter all the while our money is deducted and sitting in their account making them money NO WAY!!!!!!!!!

You may as well buy it weekly buying a few shares at a time hitting it during the lows of each week.

I stopped buying stock a long time ago and put it into stock funds. Less risk, better upside. You never put all your eggs in one basket. You ever heard of going to hell in a hand basket.

 

[MIPMASTER]

I was lucky enough to max out the yearly investment in the first quarter and still get the 10% discount. At $44.298 a share, I feel as though that will be a good investment over the next few years. Hey 29th Christmas, I am like you in that my wife and I try to live well below our means and are also trying to pay our house off over the next 5 years. We just locked in at 4.49% for 15 years. The rates are incredible right now if you credit score is solid.