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

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!

Without knowing what you had in your managed account vs your 401K I can't really comment, but unless you were forced to sell while the market was down that one snapshot doesn't tell the whole story. A better measure would be the 5 or 10 year returns.

 

[UpstateNYUPSer(Ret)]

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

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.

You will not be able to transfer funds from the traditional to the Roth 401k as one is pre tax and the other is after tax.

 

[Overpaid Union Thug]

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.

You will not be able to transfer funds from the traditional to the Roth 401k as one is pre tax and the other is after tax.

I am moving the percentage that I have been putting in the 401K into the Roth. I will be putting the full 8% into it instead of splitting it between the two. Eventually I will be up to 15%. Starting with our next raise.

 

[oldngray]

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

Roth is better if you have more time left until retirement but if you are close to retirement its better to leave it in a traditional IRA. 401k is good also but after you retire should be rolled over into an IRA.

 

[Jones]

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

Roth is better if you have more time left until retirement but if you are close to retirement its better to leave it in a traditional IRA. 401k is good also but after you retire should be rolled over into an IRA.

Why?

 

[oldngray]

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

401k is useful if you are actively contributing to it but after you retire your contributions should cease and at that point an IRA is better

 

[IVE GOTTA PACKAGE 4U]

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

Why?

To keep all your money in one place. Its much better that way.One statement

 

[Jones]

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

401k is useful if you are actively contributing to it but after you retire your contributions should cease and at that point an IRA is better

How is it better?

 

[Jones]

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

To keep all your money in one place. Its much better that way.One statement

I get one statement now and it's pretty simple.

 

[brownmonster]

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

I get one statement now and it's pretty simple.

​You get one statement from a 401k also. I would think you move it into an IRA so you have more flexibility and more investment options.

 

[Jones]

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

​You get one statement from a 401k also. I would think you move it into an IRA so you have more flexibility and more investment options.

That's what I meant, I get one statement from our 401k. Flexibility and options are really just buzzwords, the question is what does it actually do for you. Will you pay less in fees? Extremely unlikely, in fact you are pretty much guaranteed to pay a lot more. Will you get a better return on your investments? No one can guarantee you that and the simple fact is that most managed funds fail to beat the S&P index over the long term. Even if you are able to find a fund that does beat the index the fees will probably be so high that that you still lose in comparison because it's not uncommon for high performing managed funds to have expense ratios of 2% or more. If you want to pick individual stocks, have at it but that's a whole different ball game. If you plan to stay in mutual funds our 401K is just about the best deal around and I've yet to see a compelling argument for taking my money somewhere else.

 

[oldngray]

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

I moved into an IRA and have lower fees and since it is linked to my bank I get a lot of perks from the bank because of the account balances. I am not in managed funds and have a mix of mutual funds and stocks.

 

[UpstateNYUPSer(Ret)]

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

I know that when you roll your traditional 401k in to a Roth IRA you don't have any tax hit; however, I am not sure as to whether there would be a tax hit when you start withdrawing those funds, especially if the IRA that you roll it over to had already been opened with a balance prior to the rollover.

 

[oldngray]

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

I know that when you roll your traditional 401k in to a Roth IRA you don't have any tax hit; however, I am not sure as to whether there would be a tax hit when you start withdrawing those funds, especially if the IRA that you roll it over to had already been opened with a balance prior to the rollover.

Good question. 401k is pre tax and Roth is post tax money. I thought you paid the tax when you rolled a 401k to a Roth but not when you rolled over into a traditional IRA, but I'm not sure.

 

[UpstateNYUPSer(Ret)]

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

Good question. 401k is pre tax and Roth is post tax money. I thought you paid the tax when you rolled a 401k to a Roth but not when you rolled over into a traditional IRA, but I'm not sure.

As long as you roll it over and don't take a withdrawal/distribution there is no tax hit going from a traditional 401k to a Roth IRA.

 

[oldngray]

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

401k Rollover to IRA: Roth or Traditional | eHow

If you convert to a Roth IRA, the money that is converted will count as income for you. You will then have to pay taxes on the money at the marginal tax rate.

​

 

[Jones]

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

“Should I roll my old 401(k) into an IRA, leave it where it is, or roll it into my current plan at work?”
7 Reasons Not To Roll Your Orphan 401(k) To An IRA


Investors in independent retirement accounts are paying considerably more in fees on average than are those enrolled in company-sponsored 401(k) plans:
How To Avoid Costly IRA mistakes

 

[oldngray]

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

Which is better depends on your personal situation and the plans involved.

Should I Convert My 401(k) Into A Rollover IRA? The Positives Outweigh The Negatives | Financial Samurai

 

[Jones]

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

Which is better depends on your personal situation and the plans involved.

Should I Convert My 401(k) Into A Rollover IRA? The Positives Outweigh The Negatives | Financial Samurai

"But I’m a balls to the wall type of guy who bets big if I believe strongly in something."
That guy wanted to make a lot of trades and buy individual stocks which is why it made sense for him. If you're a "buy and hold"/mutual fund type investor, it's a different story.

 

[Overpaid Union Thug]

Rolling my 401k into an IRA isn't an option. I'd have to quit UPS.