question about 401k

Discussion in 'UPS Discussions' started by BrownAtTheBeach, Jan 20, 2011.

  1. BrownAtTheBeach

    BrownAtTheBeach New Member

    does UPS match what i put in it and if so how much?
  2. johnoutdoors

    johnoutdoors Member

  3. BrownAtTheBeach

    BrownAtTheBeach New Member

    then i assume its not a good idea to contribute to 401k?
  4. terrymac

    terrymac New Member

    Dave Ramsey would rather you invest in a ROTH IRA
  5. beentheredonethat

    beentheredonethat Well-Known Member

    For mgmt\admins there is a 50% match for first 5% employee contributes. (this just started in jan 2011) we had a 100% on first 3% a few years ago, but that got taken away for a while due to bad economy. for newer non union there is a higher match closer to 100% for first 3%. Newer nonunion doesn't get a defined benefit pension. Instead gets defined contribution. This gets liability due to stock market losses off of company and onto employee.

    Teamsters doesn't get a match from ups for 401K.

    The 401K will still allow you to save for retirement and lower your tax liability now. You can also (at least for nonunion) put money into roth 401k. this doesn't lower your current taxes,but it allows you to have no tax liability when you withdraw in retirement.

    Many people think the 401K is good for the tax advantages and to help save for retirement.
  6. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    I think Dave would advise you to max out your Roth IRA which is only $5000 per year before investing in a 401k.
    However, if the company matches your 401k, he would tell you to invest in that to the point were the match ends.
    You may be able to invest in a 401k through payroll deduction as well.
    The only thing that is wrong with a Roth IRA is it is limited to $5000 per year while you can invest up to $16,000 per year in a 401k ($22,000 if you are 50 or older).
    $5000 per year is OK if you are 20, sucks if you are 30 and really sucks if you are 40
  7. The Blackadder

    The Blackadder Are you not amused?

  8. cachsux

    cachsux Wah

    Only if you want to work till death.
  9. satellitedriver

    satellitedriver Moderator Staff Member

    Judge the 401K, as you wish, and use it or not.
    After the "STRIKE" of 97', I realized my future retirement was in my hands.
    The only reason I have the ability to retire at the age of 57 is due to my 401k, not my "promised" pension from Central States.
    Save, study and invest.
    At the age of 32, I was broke and owed many debts.
    I ran across a quote from Thomas Fuller.
    "Debt is the worst poverty."
    I wrote it down on the first page of a spiral note book, as a header.
    25yrs later, I still keep my investments logged into that thread bare journal.
    UPS never matched anything into my 401K, but they gave me a chance to put my money into a tax free investment.
    Best of luck,

  10. browniehound

    browniehound Well-Known Member

    HA HA HA, LOL. That was funny. Not in this lifetime unless you are in management. However, in defense of UPS they give the drivers one of the best pay/benefit packages in the industry so I will never complain about the lack of 401k match.

    I would be tempted to trade the pension contribution for a 401k match because that would be money going into MY account that I can invest anyway I like. Unlike the pension money that goes into a pool with below average investors putting it to work.
  11. browniehound

    browniehound Well-Known Member

    I'm no financial advisor ar anything, but I've never heard a CFP say it was a bad idea to contribute to a 401k. I think its a basic and important pillar on which to plan for retirement. At the very least you will be reducing your tax bill for the tear. And I know with great confidence that if the company will match up to a certain %, you should contribute that much no matter what. Its FREE money!

    Even without the match you should take advantage of the benefits of a 401K at least a little bit. We have no guarantee that a pension will be available to us in 20 years so we must explore other options. If we do our homework and take every available option we will not need the pension or SS. Those 2 would be just nice bonuses.
  12. browniehound

    browniehound Well-Known Member

    Please excuse my ignorance but who is Dave Ramsey? I love the idea of investing in a Roth IRA (minus the low 5K Max you can invest). Its like a win-win-win product. First because you don't have to think about the tax consequences like 401k's and traditional IRA's. The money you invest is taxed but when you take a withdrawal its tax free and so are your investment capital gains after you reach retirement age.

    Also, if you get stuck and need money you can take a withdrawal on your principal without penalty because the money has already been taxed. I really dig the fact that when its time to retire you can tap that account and not pay a penny in taxes. I just think that is great.
  13. terrymac

    terrymac New Member

    I stand corrected on a couple of points, 1 ups doesnt match me, 2 I thought it would apply to you , 3 Dave Ramsey has this way out concept of paying for stuff in cash, without borrowing, or going into debt..... .........I was trying to find a light bulb smiley face to insert here.. I failed ,where is my Integrety?
  14. rod

    rod retired and happy

    I believe you have to give the Union credit for that. UPS wouldn't give you squat if it was up to them.

    FAVREFAN Member

  16. satellitedriver

    satellitedriver Moderator Staff Member

    Mr. Ramsey teaches people how to get out of debt.
    My smilely face is because I was doing what he preaches before he came on the scene.
    I am glad to shout out....."I am debt free!!!!!"
    I know,
    I seem like McBragg, but it was a long, hard earned, worth while effort to get to this point, in my life.
    Many could, and should, learn from what Dave Ramsey has to say on financial matters.

  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I am a Dave Ramsey disciple and I hope to be debt free (other than my mortgage) by June.
  18. brownmonster

    brownmonster Man of Great Wisdom

    Regarding the 401k when the market tanked the last couple of times I stayed the course and kept the same mix of stock funds. My balance is the highest it's ever been. My plan is to pay off the house before retirement. The key is plan long term and not impulse buy every new thing that comes along. I'm a marketers worst nightmare.