Thoughts on UPS 2016 Pension Buyout

[UpstateNYUPSer(Ret)]

Dave Ramsey does not approve of leasing a vehicle. He thinks it's stupid, & frankly, I have to agree.

DR is correct in that leasing does not make sense.

 

[UpstateNYUPSer(Ret)]

Just spent a few minutes reading some of the new posts in the pension buyout thread. Some of those posts are better than the stuff over in Romper Room. I thank God that my kids have the financial sense that none of these people seem to possess.

 

[Shiftless]

The Pension Buy Out Thread really drives home it's Great to live where we have choices!

 

[UpstateNYUPSer(Ret)]

The Pension Buy Out Thread really drives home it's Great to live where we have choices!

To me it screams for the need for personal finance classes in high school.

 

[babboo25]

DR is correct in that leasing does not make sense.

What time does your show come on?

 

[Luke Thighrocker]

Just a few personal thoughts on some of the comments that I have read on the Pension Buyout thread. Judging by the reactions from some, you would think that they have won the lottery when, in reality, they are opting for instant gratification rather than responsible long term financial planning. Would you rather have $1000 today or $10000 in 20-30 years?

I would think that the bean counters at UPS are laughing their collective butts off as they continue to shed pension obligations for pennies on the dollar.

As was pointed out, what would those who opted for the lump sum distribution in order to resolve whatever personal financial issues they are having have done had this buyout not been offered? Additionally, those who are in good financial shape and opted to take the lump sum to go on a spending spree, need to look in to why they chose to do this.

Responsible short and long term financial planning is the key to a secure and comfortable retirement.

Had I been offered the buyout I would have scheduled an appointment with my Edward Jones adviser to work together to determine the best use for that money. I may have been tempted to use part of that money to help my son with his student loans but in the end I would not have touched any of that money as that would have been a foolish decision on my part.

The "it's my money and I want it now" mentality is why many of you will have to work well past your projected retirement dates.

Have you taken into consideration what, retired members of the multi-employer fund are facing?

The $1,000 now vs. $10,000 in 20-30 doesn't carry much weight because, things change. You can give the best 30 years of your life to the company and two years after you retire, you can receive a letter that says, "sorry, you're only gonna get half of what you thought you were gonna get".

Furthermore, the future/tomorrow isn't guaranteed to any of us. I think that's an angle some people look from when considering taking a lump sum. You get a guaranteed amount vs uncertainty.

I also think, Frigid is off the mark with his reply.

 

[No Regerts]

Never claimed to be a guru but anyone with an ounce of common sense would not have taken the lump sum.

What would you say to the 53 yr old after 3 heart attacks, 4 stents, and a pacemaker with family history of death at age 56? Take the 300 a month? Some circumstances would dictate taking a lump sum. I may have a short term outlook on life.

 

[UpstateNYUPSer(Ret)]

What would you say to the 53 yr old after 3 heart attacks, 4 stents, and a pacemaker with family history of death at age 56? Take the 300 a month? Some circumstances would dictate taking a lump sum. I may have a short term outlook on life.

I'd say you should get your affairs in order.

 

[Garland Bennett]

Doing a Rollover IRA is also taking a lump sum. You write this post as if a lump sum is going straight to the individual and there isn't another option. I personally think everyone offered it should take it and have hands on investment control instead of waiting. But its up to the person. not some 'Johnny Knows Best".

 

[UpstateNYUPSer(Ret)]

Doing a Rollover IRA is also taking a lump sum. You write this post as if a lump sum is going straight to the individual and there isn't another option. I personally think everyone offered it should take it and have hands on investment control instead of waiting. But its up to the person. not some 'Johnny Knows Best".

Uh, no, it's not.

 

[walk it off]

Just a few personal thoughts on some of the comments that I have read on the Pension Buyout thread. Judging by the reactions from some, you would think that they have won the lottery when, in reality, they are opting for instant gratification rather than responsible long term financial planning. Would you rather have $1000 today or $10000 in 20-30 years?

I would think that the bean counters at UPS are laughing their collective butts off as they continue to shed pension obligations for pennies on the dollar.

As was pointed out, what would those who opted for the lump sum distribution in order to resolve whatever personal financial issues they are having have done had this buyout not been offered? Additionally, those who are in good financial shape and opted to take the lump sum to go on a spending spree, need to look in to why they chose to do this.

Responsible short and long term financial planning is the key to a secure and comfortable retirement.

Had I been offered the buyout I would have scheduled an appointment with my Edward Jones adviser to work together to determine the best use for that money. I may have been tempted to use part of that money to help my son with his student loans but in the end I would not have touched any of that money as that would have been a foolish decision on my part.

The "it's my money and I want it now" mentality is why many of you will have to work well past your projected retirement dates.

Took a 8k reenlistment bonus in '81 tax free.
Reenlisted for 6 in the USN reserve after 4 active but did it in int'l waters. 30 year CD in '81
to 2011 and rolled until '15. Use reserve paychecks for mutual funds started in '82. Used the money from the class action lawsuit over 10 min breaks,(California in 2005=06) to add to mutual funds. Only 2 times I made a lump sum investment or purchase. My paycheck paid the bills and wife's did the saving and investing, retirement. Take my reserve pension at 60.
and wife retires same year '19. You should give classes on this to people in their 20's. May be 2-3 may be smart enough to listen. I sure would have

 

[BrownFlush]

Speaking of pension buyouts and multi-employer funds , has anyone heard anything? Heard talk at one time of combining all funds into one to keep the checks coming. There can be no doubt UPS is getting out of the pension business. The big sell is on for 401k and matching,blah,blah,blah. They are rubbing their hands together with glee at whats happening. Yeah , we showed 'em , strike to keep our pension in a multi-down the drain , poor managed fund. With the money going in the funds at present and not able to keep them afloat , maybe my spending it like a drunken sailor days are limited. The fund I am in, is and has been critical , adjustments and cuts have been made but, none to the current retirees yet. Would be good to hear if a solution is even being considered from the International . Looking to Washington is such a waste of time.

 

[cosmo1]

Took a 8k reenlistment bonus in '81 tax free.
Reenlisted for 6 in the USN reserve after 4 active but did it in int'l waters. 30 year CD in '81
to 2011 and rolled until '15. Use reserve paychecks for mutual funds started in '82. Used the money from the class action lawsuit over 10 min breaks,(California in 2005=06) to add to mutual funds. Only 2 times I made a lump sum investment or purchase. My paycheck paid the bills and wife's did the saving and investing, retirement. Take my reserve pension at 60.
and wife retires same year '19. You should give classes on this to people in their 20's. May be 2-3 may be smart enough to listen. I sure would have

Are you Mr. olroadbeech?

 

[DorkHead]

Everyone`s situation is different. Hopefully everyone thinks through their options and makes a sound decision. At least there are options.