UPS Stock vs 401k

jerseyupser

Well-Known Member
I never have talked to anyone about my 401k , professionally .
That said I still owe some UPS stock ( last purchase was in 2003 ) which I use for a rainy day .
I believe the national average for a 401k is about 70,000 - 80,000 .
I on the other hand have close to what an airline pilot's average would be .
Every raise given meant that I raised my contribution up by at least 1% .
Since I plan on retiring soon I up my rate every quarter .
Putting money into a 401k give you a tax deduction , which is a good thing .
Buying stock even with a discount is not .
Because when you sell it Capital Gains Taxes must be paid ( up to 39% ) .
Thank you. Do you know the exact tax on the stock?


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Xexys

Retired and Happy
Does the money that is taken out of your pay for UPS stock still sit on the shelf for 3 months or so until the buy order goes in? If so, I would say the 401k is a better investment as it takes only a day for the buy order after your pay check.
 

jerseyupser

Well-Known Member
Does the money that is taken out of your pay for UPS stock still sit on the shelf for 3 months or so until the buy order goes in? If so, I would say the 401k is a better investment as it takes only a day for the buy order after your pay check.
That I don't know of. But you do get a discount from the UPS stock and it is good stock pays dividends every quarter.


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UpstateNYUPSer(Ret)

Well-Known Member
That I don't know of. But you do get a discount from the UPS stock and it is good stock pays dividends every quarter.

The discount used to be 10% off of the lowest price of the quarter. It is now 5% of the price on the last day of the quarter. Big difference.

As was mentioned above, if the company is indeed holding your money and purchasing stock on your behalf at the end of each quarter, you are losing the compounding potential of that money for 3 months, which may not sound like much but it does add up over time.
 

1989

Well-Known Member
Ups stock is a stock. You sell, you pay taxes on your gains or get a deduction on your losses.

401K is an account (a savings account, for example) with special tax advantages. Many things can be purchased with the funds and held in this account.
 
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