Just started my 401k, thoughts?

[instantK]

I picked the employee pre tax 401k
3%

S&P 500 EQUITY INDEX FUND	Added	Large Cap Stock - Blend	25 %
S&P 400 MIDCAP INDEX FUND	Added	Mid Cap Stock - Blend	25 %
RUSSELL 2000 INDEX FUND	Added	Small Cap Stock - Blend	25 %
INTERNATIONAL INDEX FUND

Added

International Stock - Blend

25 %

 

[UpstateNYUPSer(Ret)]

Hard to give advice without knowing your employment status.

 

[brownmonster]

Exactly the same mix as mine. Let it ride for 30 years

 

[instantK]

I thought about the bright horizon
age 30, 8 years with the company, started driving

 

[UpstateNYUPSer(Ret)]

I am contributing 20% of my pre-tax to the 2025 BH fund. BH funds with a targeted retirement date tend to be aggressive early and then become more conservative the closer you get to the end. I will be retiring in 2019 but chose the 2025 as I wanted the more aggressive investments.

Are you in the traditional or the Roth 401k?

 

[Cementups]

I have some of mine is some pretty aggressive stocks right now but they can easily be switched over if I stop making the gains that I have been.

 

[instantK]

Traditional
then I might set up a ROTH IRA through like vanguard or something

 

[UpstateNYUPSer(Ret)]

I would love to max mine out but I am also on an accelerated mortgage repayment program which will have my condo paid off two months before I retire.

 

[barnyard]

Only 3%???

What's the point?

I am doing 12% pretax, $50/week post tax and $50 a week buying stock. I should probably double my post tax.

 

[UpstateNYUPSer(Ret)]

This is why I asked him what his employment status is.
3% is rather low but we don't know his financial position.

 

[superballs63]

Only 3%???

What's the point?

I am doing 12% pretax, $50/week post tax and $50 a week buying stock. I should probably double my post tax.

3% is better than zero percent. To be honest, it's nobody's business how much he chooses/can afford to contribute.

 

[instantK]

Yes 3% is low but its just a start I plan on slowly increasing it overtime...
Upstate sounds like your going to have a sweet retirement!

 

[UPSGUY72]

I do all mine post tax. That way it's all mine when I retire. But hey put it in pre tax now and pay uncle sam on both what you put in and what you gained later.

 

[barnyard]

3% is better than zero percent. To be honest, it's nobody's business how much he chooses/can afford to contribute.

If the OP felt it were no one's business, then he/she would not have posted. He/she did.

The OP has a very unique opportunity to set up a savings plan with almost no pain. Unless he/she is used to driver's wages, setting up for bigtime savings is very, very easy to do.

 

[barnyard]

Yes 3% is low but its just a start I plan on slowly increasing it overtime...
Upstate sounds like your going to have a sweet retirement!

From a planning point of view, your best return will be starting big and reducing over time.

You should probably sit down and talk to a financial adviser. Going from PT money to FT money provides a very unique savings opportunity that you will not have again in your lifetime.

 

[upschuck]

That seems like a good mix, mine not much different. Every time you get a raise, up your contribution percentage. You won't even miss the extra money.

 

[UpstateNYUPSer(Ret)]

Thanks.

I want to be in a position where I decide if I am ready to retire, not my finances.

My son is going for his MBA and had to borrow $43K to pay for it. There were some on this forum who thought that I should help pay for part of it. My ex initially felt this way as well. While I would have loved to have helped out, I have less than 6 years to go before I am eligible to retire. The last thing I need to do at this point is take on more debt. He is working as a TA and I send a check once a month so he can get some groceries.

He does not know this but I am hoping to pay off his students loans ($70K) for him from the proceeds of the sale of my condo.

 

[bbsam]

Just out of curiosity, is there a way to put money into a 401k, get whatever company match there might be and then move the money to a better performing Roth IRA without incurring a penalty? You can probably tell I know nearly nothing about 401k's.

 

[UpstateNYUPSer(Ret)]

I do all mine post tax. That way it's all mine when I retire. But hey put it in pre tax now and pay uncle sam on both what you put in and what you gained later.

I prefer the tax break now and will worry about the tax hit later.

 

[barnyard]

There is no company match.

UPS pays into a MEPF for our retirement, any contributions an hourly makes is on their own.

There is either a 5 or 10% discount for buying stock, so there is that. If a person does DRIP, they can buy even more.

Your questions are exactly why a person should talk to a financial adviser.