How big is your 401k?

[UpstateNYUPSer(Ret)]

I'm a 12 year employee and am eligible to take it starting at 55 if I want to.

Are you sure about that?

 

[realbrown1]

I'm a 12 year employee and am eligible to take it starting at 55 if I want to.

Only you don't want to collect your pension until you are 65..

 

[Returntosender]

You do realize that by resigning you won't start receiving your pension until you turn 65.

Why is that?
I hear you can start pension payment at earlier age but you will have reduction in benefits?

 

[UpstateNYUPSer(Ret)]

Why is that?
I hear you can start pension payment at earlier age but you will have reduction in benefits?

This may vary but in our pension fund if you leave before your meet the minimum age and/or years of service you will not start to receive pension payments until you turn 65.

 

[Out Of Brown]

Well, I'm in corporate and the policy here is that you need 10 years of service in order to qualify for early pension (age 55). I agree with others that I would want to wait since the increase in payments for every year of delay is quite good in percentage terms. In my case, the increase is 15% if I delay until 56 and goes down about a percentage point for each delayed year. If I have invested savings earning average market returns I am better off living off those funds and letting the pension ride at some good guaranteed rates like 15%. In other news, the retirement calculator has been updated on the Total Rewards site. The math is the same, but it looks better and you are able to run multiple scenarios simultaneously.

 

[Ms.PacMan]

Update I have temporally stopped contributing money to my 401k, im now focused on paying off a car loan and I’m sending all of the money that was going into the 401k to the car loan and when I pay it off all of the car payment will go into the 401k on top of the 10%.

the reit has had a good run but seems to be trending down now.

Don't forget that contributing to your 401k reduces your taxes. The money you are not putting in your 401k is probably just going to Uncle Sam....not your car loan. Use the 401k take home pay calculator and do the math! https://www.calcxml.com/do/pay02

As for the REIT, the perfect time to keep buying is when it's trending down....buy low and don't try to time the stock market.

 

[Brownslave688]

Don't forget that contributing to your 401k reduces your taxes. The money you are not putting in your 401k is probably just going to Uncle Sam....not your car loan. Use the 401k take home pay calculator and do the math! https://www.calcxml.com/do/pay02

As for the REIT, the perfect time to keep buying is when it's trending down....buy low and don't try to time the stock market.

Only a traditional. I do a roth 401k so it does not help with taxes.

 

[IVE GOTTA PACKAGE 4U]

Only a traditional. I do a roth 401k so it does not help with taxes.

Maybe split it? Might help out with tour high tax rate.

 

[Ms.PacMan]

Only a traditional. I do a roth 401k so it does not help with taxes.

Thank you. I'm showing my age and forget about the Roth 401k. I just can't believe that the interest on a car loan would beat stock market returns right now.

 

[brownmonster]

The money going into my 401k would have been taxed at 25%. I'll pay less than 15% in taxes when I withdraw it. I'm not sold on a Roth at my income level.

 

[Ms.PacMan]

The money going into my 401k would have been taxed at 25%. I'll pay less than 15% in taxes when I withdraw it. I'm not sold on a Roth at my income level.

That's why I don't contribute to the Roth. If I were younger it would make sense irregardless of income.

My IRA is a Roth but it's only because that will be the investment I touch last and can be inherited as is.

 

[Brownslave688]

The money going into my 401k would have been taxed at 25%. I'll pay less than 15% in taxes when I withdraw it. I'm not sold on a Roth at my income level.

There's a few advantages I see. I have 25-30 years left til retirement. Who knows what taxes will be then.

#2 I know this could change but with the way roth is now. I don't worry about taxes. The money I see in my account is the total I have to spend.

 

[UpstateNYUPSer(Ret)]

I am afraid the govt will start looking at Roth's for tax revenue.

 

[AndUPSER]

$4,000. That's a lot better than most 20 year olds.

 

[Bruce Newman]

How much was your 401k when you retired? Is it enough to live off of?

How much money are you guys contributing to your 401k?



My 401k is $40,000 I currently contribute 10% pretax and 5% after tax but I use that after tax as a slush fund. I buy $50 a week in UPS stock and have been known to cash that in every few years, I wish I had kept it all now. I currently have 100 shares on the books. So far this year I have earned 7% in my 401k. I like the reit fund. The s&p500 and s&p400 I have money going into the international fund and the Russell 2000 also. I wish I had been contributing 10% or more since I started.





I hope to retire early but it’s looking like that is unlikely I’d like to leave when im 55 or 56 currently im 45 with only 10 years of full time service from what I can tell there is not much of a pension at 20 years. I am saving for retirement outside of the 401k as well. I hope my 401k will be worth $250,000 when I retire and I hope to have another $200,000 in assets.

Anyone care to share your retirement savings strategy

Your off to a great start. Each pay raise increase your contribution rate. Keep most of your money in the S and P 500. Consider putting some money in the bond fund. A typical recommendation is 60% stocks 40% bonds. That will smooth out lows of the stock market. I have been in the 401k since it started. Saw it take a big hit in 2008, but stayed in (buying when the prices where low) I worked up to a 20% contribution rate with a current value of $452,000. I am 61 and will have 32 years of service when I retire in November. Just before peak!

 

[Gabba]

not trying to be an jerk but anyone not making the maximum allowable contribution to their 401k is just plain doing it wrong. now if there is some reason you can't like you absolutely can't squeak by on anything less, ok, but if you can afford to make the maximum contribution of 35% that is your best move.

 

[UpstateNYUPSer(Ret)]

not trying to be an jerk but anyone not making the maximum allowable contribution to their 401k is just plain doing it wrong. now if there is some reason you can't like you absolutely can't squeak by on anything less, ok, but if you can afford to make the maximum contribution of 35% that is your best move.

Let me guess-----you are single with no kids. Am I right?

We would all love to max out our 401k's but those of use with kids know that they expect to eat 3 times a day and wear out clothes long before they go out of style.

I am at 10% now. I have been as high as 25% and as low as 0%. I am also in an accelerated mortgage repayment program as I would like my mortgage to be paid off shortly before I retire. It would be nearly impossible for me to both max out my 401k and pay off my mortgage early, especially considering I get little to no OT.

 

[IVE GOTTA PACKAGE 4U]

not trying to be an jerk but anyone not making the maximum allowable contribution to their 401k is just plain doing it wrong. now if there is some reason you can't like you absolutely can't squeak by on anything less, ok, but if you can afford to make the maximum contribution of 35% that is your best move.

Do you contribute 35% pretax or Roth?

 

[trickpony1]

I get little to no OT.

How come everyone else in your center gets OT?

 

[IVE GOTTA PACKAGE 4U]

How come everyone else in your center gets OT?

They are slackers?