UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 2012

[Jones]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

The ROTH 401K cap is 5% Upstate. Regular 401K is much higher but the Roth cap is much, much lower.

The 5% cap is on the After Tax 401K (we actually have 3 options, traditional, after tax, and Roth.) The Roth gets lumped in with the traditional in that you can contribute up to 35% as long as total contributions to both do not exceed $17,500.00 for the year.

 

[UpstateNYUPSer(Ret)]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

The 5% cap is on the After Tax 401K (we actually have 3 options, traditional, after tax, and Roth.) The Roth gets lumped in with the traditional in that you can contribute up to 35% as long as total contributions to both do not exceed $17,500.00 for the year.

You can actually contribute solely to the pre tax Roth 401k up to 35%, up to a maximum this year of $17.5K, and up to 10% catch-up, up to a maximum of $5,500 this year, with a total combined maximum contribution rate of 40%. The balances in the traditional and the Roth 401k's are not lumped together but are instead held separately. Both can then be rolled-over in to a Roth IRA upon retirement or separation (after the age of 59 1/2) with no tax consequences.

 

[Benben]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

Alright that's it! I am going to the Prudential 401K web page to figure out where the hell I have been misunderstanding the cap limits for the past 2 years. I got a feeling I'm going to be pissed off at myself.

 

[Overpaid Union Thug]

Ok so what's the difference between a Roth IRA through Edward Jones (for example) and the Roth through our Prudential site?

 

[UpstateNYUPSer(Ret)]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

Ok so what's the difference between a Roth IRA through Edward Jones (for example) and the Roth through our Prudential site?

There is no difference.

I chose to go with Edward Jones for my Roth IRA as I like to overpay for financial advice.

Seriously, I chose EJ as I am within 6 years of retirement and I want to make sure I am on the right track. He has helped me fine tune my traditional 401k and will be there when it comes time to decide what to do with it post-retirement, along with when to start drawing SS and making sure I have enough life insurance.

 

[Jones]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

Ok so what's the difference between a Roth IRA through Edward Jones (for example) and the Roth through our Prudential site?

For tax purposes they are the same, ie, you pay taxes on your contributions now (at today's low rates) and pay no taxes on your withdrawals when you retire. The big differences are the max amount you can contribute per year which is $5,500.00 for IRA and $17,500.00 for the 401K, and the fees you will pay to the people who manage your money. You will pay up 10X more in fees to Edward Jones(that's not an exaggeration) than you will to the 401K so if you're a fool who feels the need to be parted from his money, head on over to Edward Jones and they will take care of you.

What I'm saying is that the Roth 401K is a much better deal.

 

[Overpaid Union Thug]

Ok so what's the difference between a Roth IRA through Edward Jones (for example) and the Roth through our Prudential site?

For tax purposes they are the same, ie, you pay taxes on your contributions now (at today's low rates) and pay no taxes on your withdrawals when you retire. The big differences are the max amount you can contribute per year which is $5,000.00 for IRA and $17,500.00 for the 401K, and the fees you will pay to the people who manage your money. You will pay up 10X more in fees to Edward Jones(that's not an exaggeration) than you will to the 401K so if you're a fool who feels the need to be parted from his money, head on over to Edward Jones and they will take care of you.

What I'm saying is that the Roth 401K is a much better deal.

Wow. And I was wondering about the fees too. I already claim 9 on my W4 so I wonder how switching to the Roth will affect my taxes.

 

[IVE GOTTA PACKAGE 4U]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

For tax purposes they are the same, ie, you pay taxes on your contributions now (at today's low rates) and pay no taxes on your withdrawals when you retire. The big differences are the max amount you can contribute per year which is $5,000.00 for IRA and $17,500.00 for the 401K, and the fees you will pay to the people who manage your money. You will pay up 10X more in fees to Edward Jones(that's not an exaggeration) than you will to the 401K so if you're a fool who feels the need to be parted from his money, head on over to Edward Jones and they will take care of you.

What I'm saying is that the Roth 401K is a much better deal.

You forgot about the limited funds that we have in our 401k plan. yes they are very cheap but it is a very limited menu . The biggest advantage of the 401k is that it comes out of your paycheck. Out of sight out of mind. If you work with an outside company , you have a whole world of funds to pick from. If cheapest was better Mcdonalds would take over and Outback steakhouse would disappear!

 

[Overpaid Union Thug]

For tax purposes they are the same, ie, you pay taxes on your contributions now (at today's low rates) and pay no taxes on your withdrawals when you retire. The big differences are the max amount you can contribute per year which is $5,000.00 for IRA and $17,500.00 for the 401K, and the fees you will pay to the people who manage your money. You will pay up 10X more in fees to Edward Jones(that's not an exaggeration) than you will to the 401K so if you're a fool who feels the need to be parted from his money, head on over to Edward Jones and they will take care of you.

What I'm saying is that the Roth 401K is a much better deal.

You forgot about the limited funds that we have in our 401k plan. yes they are very cheap but it is a very limited menu . The biggest advantage of the 401k is that it comes out of your paycheck. Out of sight out of mind. If you work with an outside company , you have a whole world of funds to pick from. If cheapest was better Mcdonalds would take over and Outback steakhouse would disappear!

I was comparing the available funds in USAA, Vanguard, and Prudential and the 10 year track records seem better overall in ours. Plus the fees are apparently lower too.

 

[Jones]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

You forgot about the limited funds that we have in our 401k plan. yes they are very cheap but it is a very limited menu . The biggest advantage of the 401k is that it comes out of your paycheck. Out of sight out of mind. If you work with an outside company , you have a whole world of funds to pick from. If cheapest was better Mcdonalds would take over and Outback steakhouse would disappear!

You sure do. And how many of those funds beat the S&P 500 index over the long term? If you really think that paying more money in fees will somehow generate a better return on your investments I've got some beachfront property you might be interested in.

 

[IVE GOTTA PACKAGE 4U]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

You sure do. And how many of those funds beat the S&P 500 index over the long term? If you really think that paying more money in fees will somehow generate a better return on your investments I've got some beachfront property you might be interested in.

Not trying to argue with you. Some things work better for some people . Our 401k plan is fine , it just doesn't have everything that I want or need .I put some in the 401k and I put some in an advisory account.

 

[UpstateNYUPSer(Ret)]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

For tax purposes they are the same, ie, you pay taxes on your contributions now (at today's low rates) and pay no taxes on your withdrawals when you retire. The big differences are the max amount you can contribute per year which is $5,500.00 for IRA and $17,500.00 for the 401K, and the fees you will pay to the people who manage your money. You will pay up 10X more in fees to Edward Jones(that's not an exaggeration) than you will to the 401K so if you're a fool who feels the need to be parted from his money, head on over to Edward Jones and they will take care of you.

What I'm saying is that the Roth 401K is a much better deal.

Jones, I think you may have been confused by his question. I believe he was asking if there were any differences between the Roth IRA offered by Edward Jones and the Roth IRA offered through Prudential. He was not comparing the IRA and 401k.

 

[Jones]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

I was comparing the available funds in USAA, Vanguard, and Prudential and the 10 year track records seem better overall in ours. Plus the fees are apparently lower too.

You better look again. Vanguard's 2 cheapest index funds have expense rations of .05, which is 5X what you pay for the 401K's S&P500 index (.01).USAA has 2 S&P500 index funds, one charges .27 and the other charges .32 so 27X and 32X more than the 401K for the exact same fund. Prudential really takes the cake with an operating expense of .65 for their large cap growth fund (closest I could find to an S&P500 index). Yup, 65X what you pay for the 401K. What a great deal.

 

[Overpaid Union Thug]

I was comparing the available funds in USAA, Vanguard, and Prudential and the 10 year track records seem better overall in ours. Plus the fees are apparently lower too.

You better look again. Vanguard's 2 cheapest index funds have expense rations of .05, which is 5X what you pay for the 401K's S&P500 index (.01).USAA has 2 S&P500 index funds, one charges .27 and the other charges .32 so 27X and 32X more than the 401K for the exact same fund. Prudential really takes the cake with an operating expense of .65 for their large cap growth fund (closest I could find to an S&P500 index). Yup, 65X what you pay for the 401K. What a great deal.

That's exactly what I said. LOL! Just a shorter version.

 

[Jones]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

That's exactly what I said. LOL! Just a shorter version.

My bad bro, you wrote "overall in ours" and I read "overall than ours". You're on to it.

 

[Overpaid Union Thug]

That's exactly what I said. LOL! Just a shorter version.

My bad bro, you wrote "overall in ours" and I read "overall than ours". You're on to it.

So that Roth is basically like a an IRA with lower fees??

 

[Jones]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

So that Roth is basically like a an IRA with lower fees??

Yessir. Lower fees and a higher max contribution.

 

[Overpaid Union Thug]

So that Roth is basically like a an IRA with lower fees??

Yessir. Lower fees and a higher max contribution.

 

[IVE GOTTA PACKAGE 4U]

Re: UPS/Teamster 401k...Prudential to a Dreyfus self managed account...+22.86% for 20

Yessir. Lower fees and a higher max contribution.

Lower fees are great but when the market bottomed in march 2009, my 401k was down 40+ % . My managed account was down 19% . How much did I save with those lower fees???? In an up market the lower fee index funds will be ahead most times! But when the crap hits the fan, my managed account does far far better!

 

[Overpaid Union Thug]

So that Roth is basically like a an IRA with lower fees??

Yessir. Lower fees and a higher max contribution.

Hmmm. Now I just need to figure out how switching will affect my taxes since I claim 9 on my W4. I'm already contributing 8% evenly between the 401K and Roth. I want to move it all to the Roth.