Prudential 401K plan

[satellitedriver]

It's a fine balance between socking everything away for the future and enjoying life now.

Carpe diem, quam minimum credula postero.
My version;
Enjoy now and plan for then.

 

[EAT MY OVERALLOWED]

I put 10% into Prudential 401K. I invest a lot of my takehome pay in individual stocks and ETF's through scottrade. Over the years I have become probably too comfortable with high risk investing but it has done well for me.

 

[satellitedriver]

I put 10% into Prudential 401K. I invest a lot of my takehome pay in individual stocks and ETF's through scottrade. Over the years I have become probably too comfortable with high risk investing but it has done well for me.

The same can be done in a 401k self managed account.
Advantage;
Tax deferred investments/ money not given to the govt. to waste.
Compounding growth and interest does wonders.
Disadvantage;
The money can not be touched until one is 59 and 1/2 yrs old, without the 10% penalty.

 

[brownmonster]

The same can be done in a 401k self managed account.
Advantage;
Tax deferred investments/ money not given to the govt. to waste.
Compounding growth and interest does wonders.
Disadvantage;
The money can not be touched until one is 59 and 1/2 yrs old, without the 10% penalty.

I hear you can start taking it at 55 as long as you have seperated/retired from the company.

 

[UpstateNYUPSer(Ret)]

I hear you can start taking it at 55 as long as you have seperated/retired from the company.

You are correct.

You also have to start taking from it at 70 1/2.

 

[Ms.PacMan]

Is there anyone on here that is making this happen now? I would love to hear your story if you are. It would make for a staisfying career at UPS if anyone is doing this. Anyone out there that is close?

I am Brownie. I started at UPS at 27 and maxed my 401K starting with 17% two years later when I hit full pay. I also started paying off my house - fast, and accomplished that at 32. I do live in a very middle class home (think All in the Family type house) and have only had two cars in 20 years.

I raised my 401K to 22% after the downturn in the economy after 9/11. I also started traveling quite a bit while people were scared and it was cheap. I do have one child and sent him to parochial school. He's now in college on my dime. I, luckily, saved his college tuition in I bonds and they were totally unaffected by the recession. I have had a high yield checking acct. for 4 years - first earning 5% and more recently, 4%. I had cash (which is what happens when you live like me) when the market tanked and was able to buy stocks. I also do the espp $50/week.

I've survived two very dramatic downturns in the economy and as of this morning have $430,000 saved for retirement.

The sites that have helped me gain investing confidence the most are http://socialize.morningstar.com/NewSocialize/default.aspx
http://www.bogleheads.org/forum/index.php and http://www.early-retirement.org/forums/

 

[Ms.PacMan]

I hear you can start taking it at 55 as long as you have seperated/retired from the company.

You can take withdrawals at any retirement age without penalty. Sat and Upstate I know have seen me post this before - wake up you two .

http://www.required-minimum-distribution.com/72t-distributions.html
http://daseducation.wordpress.com/2007/10/22/rule-72t-retire-early-penalty-free/

I am not endorsing this because letting your money grow tax free as long as possible would be best BUT there is the option.

 

[UpstateNYUPSer(Ret)]

You can take withdrawals at any retirement age without penalty. Sat and Upstate I know have seen me post this before - wake up you two .

http://www.required-minimum-distribution.com/72t-distributions.html
http://daseducation.wordpress.com/2007/10/22/rule-72t-retire-early-penalty-free/

I am not endorsing this because letting your money grow tax free as long as possible would be best BUT there is the option.

Thanks for the (gentle) reminder. I checked out both of your links and you are correct. There are strict guidelines which must be followed and, in the case of a 401k, you have to quit your job, roll it over to a IRA or Roth IRA, and then begin the 72t process. You also need to keep in mind that these withdrawals are considered income for tax purposes.

Neither of these would make sense in my case. I will be 58 when I retire and begin to draw my $4-4.5K/month pension. While I have not been as financially frugal as you (Dave Ramsey would love you), I am nearly debt free (other than my mortgage) and have $60K in my 401k. I plan on focusing on my 401k after my daughter's wedding and hope to have $200K or more in there when I retire. My goal is to live off of my pension, take social security when I am eligible and hold off on touching my 401k for as long as I can. I live modestly and don't have a lot of toys--my weakness is going out to eat. I do plan on learning how to play golf when I retire and would love to get my private pilot's license.

 

[Ms.PacMan]

Hi Upstate! Retiring debt free will go a loooong way to making your retirement dreams come true.

Funny thing is I don't consider myself frugal. I buy what I want when I want it and here's where I'm different - I never want anything. I have no idea why but "stuff" (as George Carlin would say) never enters my mind. I usually only replace things that no longer work. I don't eat out but I do spend about $5,000/yr (or more ) on vacations

I sometimes hear (and hate) the comment "well, you don't have a mortgage, of course you have money" from others, but I paid the mortgage off - it didn't magically disappear and what I spent on tuition over the years was close to a mortgage payment. I don't even discuss finances with people in everyday life because they are full of excuses as to why they are financial wrecks and somehow diminish and deflate what savers accomplish with their comments.

 

[browniehound]

Quite well.
Over the last 10yrs I have beat the S&P index by 250%.
I bought Google a little late. My gain is only 230%.
Mark West -( a MLP)- is up 117% and pays close to a 7% dividend.
Quality Systems is the best sleeper that I bought. It is up 473% since 2006.
I usually hold -(buy and sell)- 10 to 15 stocks and keep a 20% cash reserve for buying opportunities.
Dreyfus has lowered its trading fees in the self managed 401k account to $9.95 a trade.
I track my portfolio through Google Finance and they have great comparison charts and research tools.
BTW:
It ain't straight on gambling.
It is reading and researching, even when you are too tired to do it.

Thanks for the info Sat. Wow! Your performance is outstanding. So much so that I might suggest you are in the wrong business,lol. I used "gamble" with 5K for lack of a better word. Its more of an educated guess if your reading and researching, but if thats all it took everyone would be rich as there is a knack to it.

I used to subscribe to and read religously Investors Business Daily. Good info and a solid strategy but I never had enough cash to make any real money. Its why I'm thinking of using its strategy in the self managed account.

 

[browniehound]

I am Brownie. I started at UPS at 27 and maxed my 401K starting with 17% two years later when I hit full pay. I also started paying off my house - fast, and accomplished that at 32. I do live in a very middle class home (think All in the Family type house) and have only had two cars in 20 years.

I raised my 401K to 22% after the downturn in the economy after 9/11. I also started traveling quite a bit while people were scared and it was cheap. I do have one child and sent him to parochial school. He's now in college on my dime. I, luckily, saved his college tuition in I bonds and they were totally unaffected by the recession. I have had a high yield checking acct. for 4 years - first earning 5% and more recently, 4%. I had cash (which is what happens when you live like me) when the market tanked and was able to buy stocks. I also do the espp $50/week.

I've survived two very dramatic downturns in the economy and as of this morning have $430,000 saved for retirement.

The sites that have helped me gain investing confidence the most are http://socialize.morningstar.com/NewSocialize/default.aspx
http://www.bogleheads.org/forum/index.php and http://www.early-retirement.org/forums/

Ms. PacMan, That is great! Thank you for sharing your story, it will serve as an inspiration to most of us Its amazing that you could put your child through private school and then college and STILL plan for a secure retirement. I hope you kid realizes how smart his mother is!

 

[moreluck]

Analysts were saying today that FedEx may have a $135 topside.........any of you acting on that?

 

[satellitedriver]

You can take withdrawals at any retirement age without penalty. Sat and Upstate I know have seen me post this before - wake up you two .

I had my coffee this morning.
You are correct, but Upstate has shown the downside.
Most UPSer's do not have the ability to take advantage of the loop hole and have to stay the course in their 401K.
You have done very well, and I am proud for you.
I just have happened to do better.

 

[kingOFchester]

Analysts were saying today that FedEx may have a $135 topside.........any of you acting on that?

As wrong as it may be, I plan on buying fdx. Great way to further diversify. If FDX does real well, and UPS goes to the birds, I may take pay cuts or health and welfare cuts, then the up side will be my fdx stock. If fdx takes a dump and UPS does well......well then I will still be humping boxes for the best pay in the business.

 

[tarbar66]

This is probably the best thread going on BC right now.

I opened up the self directed or self managed option in my 401K way back when it was first offered but I was too chicken to use it.

I have been tempted to buy FDX also usually before contract time. Never did though, I guess I coulda, woulda, shoulda have looking back at the gains that could have been made.

 

[brownmonster]

Thanks for the (gentle) reminder. I checked out both of your links and you are correct. There are strict guidelines which must be followed and, in the case of a 401k, you have to quit your job, roll it over to a IRA or Roth IRA, and then begin the 72t process. You also need to keep in mind that these withdrawals are considered income for tax purposes.

Neither of these would make sense in my case. I will be 58 when I retire and begin to draw my $4-4.5K/month pension. While I have not been as financially frugal as you (Dave Ramsey would love you), I am nearly debt free (other than my mortgage) and have $60K in my 401k. I plan on focusing on my 401k after my daughter's wedding and hope to have $200K or more in there when I retire. My goal is to live off of my pension, take social security when I am eligible and hold off on touching my 401k for as long as I can. I live modestly and don't have a lot of toys--my weakness is going out to eat. I do plan on learning how to play golf when I retire and would love to get my private pilot's license.

I too will be 58 when I hit my 30 years. My pension will only be 3K a month. I'm thinking of leaving at 56 and taking 401k money to supplement my pension.

 

[Ms.PacMan]

FINVIZ is a good site that gives all the stats on a company and all the analyst's price targets and recent news. They also have a nice screener to look for stock meeting whatever criteria a person might deem worthy.

I too will be 58 when I hit my 30 years. My pension will only be 3K a month. I'm thinking of leaving at 56 and taking 401k money to supplement my pension.

Why 56 at 28 years? 2yrs isn't that long.

 

[UpstateNYUPSer(Ret)]

Why 56 at 28 years? 2yrs isn't that long.

I was also curious about this.

 

[satellitedriver]

FINVIZ is a good site that gives all the stats on a company and all the analyst's price targets and recent news. They also have a nice screener to look for stock meeting whatever criteria a person might deem worthy.




Why 56 at 28 years? 2yrs isn't that long.

Thanks for the finviz site.
Nice one stop information shopping.
You asked why leave at 56 with 28.
One word comes to mind.
Burnout,
both mental and physical.
I am at that stage and I am just taking it day by day.

 

[brownmonster]

FINVIZ is a good site that gives all the stats on a company and all the analyst's price targets and recent news. They also have a nice screener to look for stock meeting whatever criteria a person might deem worthy.




Why 56 at 28 years? 2yrs isn't that long.

Kids will be off the payroll and I'll be debt free. Why work? If I have to work I'll go get a normal job with normal hours.