Should I invest in stock?

[hypocrisy]

I remember I was told once from an HR that you could invest in the ups stock and earn some money? also even if the stock went down they said that you can sell the stock and get your money back is that true?

I don't make much so is it worth it?
my pay usually goes to $110-120

You shouldn't put any of your money in UPS stock, or any single stock for that matter. It's way too risky.
Put your contributions in the 401k plan, spread evenly over mutual funds, a targeted fund, index funds, and a stable value.
Start with a 5% contribution and increase that every pay raise by at least 1% until you are maxed out.

I would also open a Roth IRA account and/or maximize your after-tax contributions to the 401k.

 

[Re-Raise]

You are wrong.
The gains are taxed as capital gains and the discount you received will be taxed as normal income.
Each share you sell will be taxed on cost basis. then the math comes into play.

I said he was wrong when he stated that the DESP was taken out before taxes. I have bought and sold over 100k in UPS stock since I began buying it before the IPO.

The only time I ever had to pay taxes on income from a stock sale as normal income was when I sold some shares I held for less than a year so the discount came into play.

You must hold all shares bought through the DESP for 2 years now before they can be sold which makes the difference in the purchase price and the price you sell the shares at a capital gain or loss.

 

[satellitedriver]

I said he was wrong when he stated that the DESP was taken out before taxes. I have bought and sold over 100k in UPS stock since I began buying it before the IPO.

The only time I ever had to pay taxes on income from a stock sale as normal income was when I sold some shares I held for less than a year so the discount came into play.

You must hold all shares bought through the DESP for 2 years now before they can be sold which makes the difference in the purchase price and the price you sell the shares at a capital gain or loss.

Yes, you were correct about the them being bought with after tax money.
You may have sold before the IPO, but that was a different taxable event that was governed by the one year hold rule between earned income and capital gain.
The only point I was making is that you were wrong stating that selling DESSP stock is only taxable at capital gain rates.
The IRS has very definite rules on the sales of DESSP stocks.
The discount rate is taxed at normal earned income rates and any gain is taxed at capital gain rates.
I also have bought and sold over 100K of UPS stock, both in the open market, after the IPO, and through the DESSP program.
Since I do my own taxes, I am intimately familiar with the accounting of blocks of shares that were bought in separate quarters.
It is kind of a pain separating the wheat from the chaff, when filling out tax forms selling DESSP stock.
The two year hold has nothing to do with tax implications, besides the IRS's one year hold rule.
The hold was put into place, by UPS, because smart people were selling at the end of every quarter banking the 10% discount.

 

[Re-Raise]

Yes, you were correct about the them being bought with after tax money.
You may have sold before the IPO, but that was a different taxable event that was governed by the one year hold rule between earned income and capital gain.
The only point I was making is that you were wrong stating that selling DESSP stock is only taxable at capital gain rates.
The IRS has very definite rules on the sales of DESSP stocks.
The discount rate is taxed at normal earned income rates and any gain is taxed at capital gain rates.
I also have bought and sold over 100K of UPS stock, both in the open market, after the IPO, and through the DESSP program.
Since I do my own taxes, I am intimately familiar with the accounting of blocks of shares that were bought in separate quarters.
It is kind of a pain separating the wheat from the chaff, when filling out tax forms selling DESSP stock.
The two year hold has nothing to do with tax implications, besides the IRS's one year hold rule.
The hold was put into place, by UPS, because smart people were selling at the end of every quarter banking the 10% discount.

I just sold 400 shares Feb 3rd. So you are saying I have to go back on my certificates and not only find my acquisition cost, I also need to record the market price at the time of purchase for each quarter and find out what my discount was for each purchase and record this as income?

I guess I am glad this came up because I also do my own taxes. The purchase of these shares are spread over several years. If you have a link to the tax rules for DESSP purchases could you post it here. Thanks.

 

[moreluck]

Cash kings..........
http://www.fool.com/investing/general/2011/05/20/meet-the-cash-kings-of-delivery.aspx

 

[rama'nfeeders]

You shouldn't put any of your money in UPS stock, or any single stock for that matter. It's way too risky.
Put your contributions in the 401k plan, spread evenly over mutual funds, a targeted fund, index funds, and a stable value.
Start with a 5% contribution and increase that every pay raise by at least 1% until you are maxed out.

I would also open a Roth IRA account and/or maximize your after-tax contributions to the 401k.

UPS is a union company as we all know and Wall Street does not like theses type of companies. Since the econony has gone south UPS has mistreated,disrespected, and down right have lied about the employees. It gets worse everyday so I say this EVERYONE WHO OWNS UPS STOCK AND IS AN HOURLY EMPLOYEE SHOULD SELL THEIR STOCK AND PUT IT IN A ROTH IRA WHICH EARNS % AND AT 59.5 YOU CAN w/drawl w/out being penalized. We as emplyees are FOOLS to hold this STOCK because that means we own a SMALL % of this company and UPS(GA)loves the FACT that they get everyone to fall for this great 5% discount. The stock is MANAGEMENT CONTROLLED WE COULD SEND A STRONG MESSAGE TO ATLANTA THAT WE DONT NEED YOUR STICKING STOCK!!!!

 

[MobileBA]

No..............employee's should not invest in companies they are employed by(conflict of interest)....think of Enron, Countrywide, Lehman Brothers, Linen n' Things, Levitz Furniture, Madoff Investment, Washington Mutual, blah....blah............

 

[PT Stewie]

I believe you cannot withdraw any monies for a minumum of a year after deposit maybe 2. Also you can only cash in lots of 100 shares. You need to read the plan rules. Overall a pretty good investment.As a side after investing you can tell the sups they are working for you! LOL

 

[moreluck]

UPS is a union company as we all know and Wall Street does not like theses type of companies. Since the econony has gone south UPS has mistreated,disrespected, and down right have lied about the employees. It gets worse everyday so I say this EVERYONE WHO OWNS UPS STOCK AND IS AN HOURLY EMPLOYEE SHOULD SELL THEIR STOCK AND PUT IT IN A ROTH IRA WHICH EARNS % AND AT 59.5 YOU CAN w/drawl w/out being penalized. We as emplyees are FOOLS to hold this STOCK because that means we own a SMALL % of this company and UPS(GA)loves the FACT that they get everyone to fall for this great 5% discount. The stock is MANAGEMENT CONTROLLED WE COULD SEND A STRONG MESSAGE TO ATLANTA THAT WE DONT NEED YOUR STICKING STOCK!!!!

If you don't want yours, just send it my way....I'm collecting the whole set!!

 

[Benben]

It just amazes me at how much the anger of some posters clouds their thinking....How do some of you live like that?!?!

Should you invest? What are you doing right now to plan on your future?? What savings do you have in place now? Or are you "planning" to get round to it later in life?

The DESPP in a nut shell:

1. Fire and forget: log into upers.com and decide how much per paycheck and its all done for you without you having to do anything else!
2. 5% discount (I WANT THE 10% BACK!!!!!!) plus quarterly dividends which are what...over $2 per share yearly at this point. Try even getting 1/4 of that with a savings account or a CD the last 2 years!!
3. Forces you to save. If you do have an emergency you can still get to that money.
4. Couple this with the 401K. Go to upsers.com and simply have 5% of pretax income sent to your 401K. You wont miss the 5%!

For you younger workers out there LISTEN TO ME!

SAVING 5% OF YOUR INCOME A YEAR STARTING IN YOUR 20's IS A WHOLE #$%^ING LOT EASIER THAN TRYING TO SAVE 45% OF YOUR INCOME STARTING IN YOUR 40's!.

Be smart, we all work hard for our money. Let your money work hard (read over time) for you. Unless you are planning to eat cat food when your 75 do NOT plan on living off social security alone when you retire.

Personally, I plan on traveling and seeing all these places I have read about. My DESPP, 401K, Pension and SS promises a GREAT retirement! Besides, when I get banished to the dog house for being bad and the wife says, "your sleeping on the couch tonight" my "couch" is gonna be in Vegas

 

[UnconTROLLed]

It just amazes me at how much the anger of some posters clouds their thinking....How do some of you live like that?!?!

Should you invest? What are you doing right now to plan on your future?? What savings do you have in place now? Or are you "planning" to get round to it later in life?

The DESPP in a nut shell:

1. Fire and forget: log into upers.com and decide how much per paycheck and its all done for you without you having to do anything else!
2. 5% discount (I WANT THE 10% BACK!!!!!!) plus quarterly dividends which are what...over $2 per share yearly at this point. Try even getting 1/4 of that with a savings account or a CD the last 2 years!!
3. Forces you to save. If you do have an emergency you can still get to that money.
4. Couple this with the 401K. Go to upsers.com and simply have 5% of pretax income sent to your 401K. You wont miss the 5%!

For you younger workers out there LISTEN TO ME!

SAVING 5% OF YOUR INCOME A YEAR STARTING IN YOUR 20's IS A WHOLE #$%^ING LOT EASIER THAN TRYING TO SAVE 45% OF YOUR INCOME STARTING IN YOUR 40's!.

Be smart, we all work hard for our money. Let your money work hard (read over time) for you. Unless you are planning to eat cat food when your 75 do NOT plan on living off social security alone when you retire.

Personally, I plan on traveling and seeing all these places I have read about. My DESPP, 401K, Pension and SS promises a GREAT retirement! Besides, when I get banished to the dog house for being bad and the wife says, "your sleeping on the couch tonight" my "couch" is gonna be in Vegas

http://www.upiu.com/story/img/2/b/1265201391323/se/sv/friend/9401289947842/Sleeping-with-the-enemy-Tekwani-lived-with-the-Tigersimg_1.jpg

 

[klein]

You tell me as an outsider why I should invest in UPS stock ?
I find it very unattractive, even if I were to get the 5% off.

The drivers are the highest paid in the industry and beyond that. I don't think any other driver earns that much, not even a furniture mover breaking his back every day.
UPS also has squeezed every minute/second out of their drivers. There is hardly any more room for drivers to work more effecient.

The US economy is also still in the tank, and republicans want to make cuts of $2 Trillion in August (that will be an awesome stimulus, not!!) !
In 2 years time, it is likely that America's credit rating sinks.

For me tech stocks are still among the safest to invest in. Because people are hooked on tech.
They can't live without them !

And nothing wrong in saving up cash, in times like these and with uncertainty because of the huge national debt.
Foriegn investments in foreign currency is a very good way to protect yourself, too.

 

[Deinte Fubara]

I would agree with you if the company matched your investment into your 401 like most others do...but they dont so if anything invest a dollar then hopefully in the future you find another part time job and roll over that 401 at a 10% match rate.

 

[UpstateNYUPSer(Ret)]

I would agree with you if the company matched your investment into your 401 like most others do...but they dont so if anything invest a dollar then hopefully in the future you find another part time job and roll over that 401 at a 10% match rate.

Please name one company that offers a 10% match on their 401k as I would like to apply to work there.

 

[klein]

Please name one company that offers a 10% match on their 401k as I would like to apply to work there.

Best And Worst 401K Plans 2010: A Glance

The top ten in the list include Saudi Arabian Oil, Lockheed Martin, Southwest Airlines, Piper Jaffray, FedEx, Amgen, Chevron, Exxon Mobile, AstraZeneca, IBM, OppenheimerFunds and Microsoft.
The top 10 worst 401K plans consist of the following companies, Darden Restaurants, Big Lots, RadioShack, Zale Corp, Bob Evans Farms, Best Buy, Whole Foods Market, La-Z-Boy, Wal-Mart, Home Depot and Tyson Foods.


​

 

[cachsux]

Best And Worst 401K Plans 2010: A Glance

The top ten in the list include Saudi Arabian Oil, Lockheed Martin, Southwest Airlines, Piper Jaffray, FedEx, Amgen, Chevron, Exxon Mobile, AstraZeneca, IBM, OppenheimerFunds and Microsoft.
The top 10 worst 401K plans consist of the following companies, Darden Restaurants, Big Lots, RadioShack, Zale Corp, Bob Evans Farms, Best Buy, Whole Foods Market, La-Z-Boy, Wal-Mart, Home Depot and Tyson Foods.


​

Upstate asked a question, Mr. Copy and Paste. Of those which matches 10%?

 

[klein]

Chevron matches dollar per dollar.

 

[UpstateNYUPSer(Ret)]

Chevron matches dollar per dollar.

Are you telling us that if we contributed up to the IRS maximum of $16,500 (+$5,500 for participants 50 and older) that they would match it dollar for dollar? No wonder gas is so expensive.

 

[cachsux]

Chevron matches dollar per dollar.

"Receive a company match of 8 percent when contributing at least​

2 percent of pay; 4 percent match when contributing 1 percent of pay."


As you can see it is not 10%.

 

[moreluck]

"Receive a company match of 8 percent when contributing at least​

2 percent of pay; 4 percent match when contributing 1 percent of pay."

As you can see it is not 10%.

You mean Klein got something wrong....oh my !!