Just A UPS Guy
Bully.
Nope. Got mine not long ago.
Why a 401(k) Will Yield You More Money Than a Pension
- Thread starter ThePackageDeli
- Start date
oldngray
nowhere special
eats packages
Deranged lunatic
Hey now it's still 40 hours just at a reduced funding rate
PT Car Washer
Well-Known Member
I make the same as the FT car washers. Equal pay for equal work.Hey now it's still 40 hours just at a reduced funding rate
UnionStrong
Sorry, but I don’t care anymore.
Do you have the site where you create an account? I used to get packets in the mail annually but they stopped a few years back. I’m out of 104.
Cowboy Mac
Well-Known Member
No they got invested into the Tangiers in Vegas.
UnionStrong
Sorry, but I don’t care anymore.
Lol
Just A UPS Guy
Bully.
Me too, I just got a statement in the mail. I'll see if I can find it when I get home in the morning and get you some info.
Non liberal
Well-Known Member
I’d rather have a pension that is going to be there when I retire. Unlike my 401 k where 30k can just disappear because a democrat gets elected! But we never learn so…Hypothetical example:
John begins UPS on Jan 1, 2020 and retires on Jan 1, 2055, at age 65.
Under the current pension plan, John's 35 years of service entitle him to roughly $70,000/yr (- taxes) beginning at age 65.
If John lives to be 85, he will have earned roughly $1.4 million(- taxes) in pension income during his lifetime.
-vs.-
If John fully invests his 401(k) from 2020 to 2055, he will have contributed roughly $787,500.
If John's investment grows at 5% for 35 years, his 401(k) account value at age 65 will be roughly $2,130,000 (that's nearly $1.4 million in earnings)
The real question you want to ask yourself is this:
Would I rather earn $1.4 million in taxable income by age 85, or would I rather have $1.4 million of taxable income in my account by age 65?
This is why I would rather have a 401(k) match over a pension.
These numbers get even sweeter when you factor in a company match for 35 years, holy.
The pension is a freaking scam you guys. It's corporate welfare for dummies with no financial discipline.
You can always put your 401k and safe investments if you're worried about losing money
Non liberal
Well-Known Member
Yeah, but then you don’t make anything so you would definitely want the pension over that.
The purpose of a 401k or an IRA is to give yourself a cost of living raise for retirement because you're pension does not offer one.
Everyone has a different risk tolerance and a different timeline.
It was almost horrifying to watch my 401k get shredded in half in 2008 and 2009
But fortunately I did not panic and left it alone and kept adding to it and now it's a pretty good amount.
Now I'm getting towards the end of my career so I have more money into the safe investments.
Non liberal
Well-Known Member
How much is enough to put in your 401k? I have another question, how long do we get our pension for? Is it until we die, or just a set amount of years?
You get it to you die but also you'll get less if you take out of survivorship clause for your spouse
As far as the answers how much is enough there's really no one fit answer for that.
Nobody knows how long you can do this job or how long you're going to live but the best thing I can tell you to do is to stay out of debt.
If you have no debt you need less money.
Up In Smoke
Well-Known Member
Well, maybe not.
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Over70irregs
Well-Known Member
Funny. People that get snowed on politics just keep being lost in wilderness.
You'll never be poor if you stay out of debt.
UnionStrong
Sorry, but I don’t care anymore.
Inflation wasn’t at 9% 3 years ago either. It’s still over 4. New home buying has collapsed, interest rates are going up. The dollar buys less. Democrats are great. Let the great reset continue.
Up In Smoke
Well-Known Member
We passed a 5.5T dollar tax cut without paying for it. We printed over 9T in treasuries, passed out 6T unemployment, PPP and SBA loans without oversight. Plenty of fingers in this mess.
