highspeeds
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See post #10
XPO | 401k changes
- Thread starter Cnwy21
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See post #10
I'm thinking part of his issue with it is that he wants to know where his cut is going to come from.
Everybody should keep in mind that we are only getting the company contribution to the 401k. You receive it even if you don't contribute anything. If you are unhappy about the plan, let the company put in your 3, 4, or 5%, and you can contribute to an IRA or Roth IRA anywhere you choose. You will have the choices you want with that. If you are set up to max out your Roth, you may need to put into the 401k, but at least it won't be as much. And if you are investing $5500 in a Roth AND $18500 or whatever the max is now into 401k, you're doing better than me!
I do my financial homework daily. I constantly watch the markets. I trade stocks and ETF's to increase my throttled retirement choices at FedEx. There are many funds we could be investing in that have lower fees to us with better returns then what we currently have. That is a fact, do your homework. The employer has the responsibility to provide us with diversity of plan investments and to act in our best interest. I am merely providing a word of caution here and not "trolling" as you say. Far too many people do not actively manage their 401k accounts. This investment is where the bulk of workers retirement will come from and can be the difference between a stressful or stress free environment.
Its $6500 now. I talked to my advisor yesterday. Thats what we're going to do. If your wife doesn't work and your income is a certain level you can also put $6500 in a ROTH for her.
Good to know.
Serene Gene
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At what risk? Generally, as returns go up so does the risk. That's an important consideration when you're talking about retirement.
If making money in the markets was that simple, no one would need convincing. Again, you've got to factor in the risk- and there's the potential for plenty of it if you want to actively manage your investments.
Also, you've got to consider the value of your time and what you want to do with it. If you enjoy playing the markets, then that might be a good fit for you. If you just want to make money, you may be better off letting someone else drive.
I could save a bunch of money by painting my own house- but who likes painting a house? The guy I'm paying to do it- definitely not me. I can find something to do with my time that is more valuable to me.
I was just looking at T.Rowe Price and the $6500 is for age 50 plus. I'm not there yet.
https://www3.troweprice.com/rws/rps...s/pdf/104240_Plan_Change_Brochure_3.11.16.pdf
In case you wish to end the mental ************ and read it for yourself.....
In case you wish to end the mental ************ and read it for yourself.....
Many of these we can not invest in have the same or less risk as our current choices. Everyone should be checking their 401k every month regardless. It takes less then 5 minutes in this digital age. If you set it and forget it then you run the risk of missing opportunities to adjust your returns. Some funds are managed and some are not. Funds can go from good returns to negative returns no mater what risk level they are. Letting someone else drive is fine for most but you still need to make sure they are driving where you want to go.
I have to disagree with the point. If you are in mutual funds you don't need to check that often. Mutual funds are longterm investments. Find a couple that have a good track record and just check every 3-6 months and then about once a year decide if you need to make any changes. Our funds are not very risky. Now if you are in individual stocks it is a different story.
silent trucker
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Okay, guess you missed the announcement a year back about us not paying the freight anymore. FedEx muscled Vanguard into waiving a bunch of fees for our folks. Troll on.
snaildriver
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I completely agree. I checked mine often, and moved money around when I felt it was necessary. When I retired, I pulled all of it out and put it in an IRA.
silent trucker
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The 401 (k) has become a phenomenally important tool for retirement. If you don't know how to invest, you have three choices; learn, pay someone to manage the money or fly blind and hope not to crash.
I recommend learning and hiring someone. Just hiring someone to manage your money has an entire set of risks all it's own.
One great option for FedEx drivers, is to pay Vanguard to manage the money. They do it quite cheaply and they're experts.
As for self managing, one of the greatest risks is thinking you're smarter than you are. I have a co-worker who transferred all his money to a self directed IRA brokerage account (optional if you're over 59.5), and proceeded to turn $500,000 into $100,000 in six months. Brilliant I say! Brilliant! He'll die behind the wheel.
Have a couple of other co workers playing options, puts and calls. Losing their ass like a rigged roulette table. Index mutual funds are the safest avenue of travel....
ST, not willing to die behind the wheel....
Trucker 206
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And you expected different?
As a troll this is your last feeding here in this topic from me, I guess when you say "not paying the freight" you mean waived some of the fees. Yes I was aware of it because I do watch my investments. I voiced my concern at that time to FedEx, which is why I posted my initial warning here on this topic. That is why we have poor performing choices now. The amount of money we have been losing far outweighs any fee we would have paid.
snaildriver
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I agree. My investments are managed by this guy. Been with him a couple of years, and I'm happy.
http://www.ebooks.com/1895796/buy-hold-and-sell/moraif-ken/
silent trucker
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So you're admitting you're a troll! Congrats! Medical Professionals say that admission of illness is the first step towards a cure!
vetran peddleman
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Oh I get it HS...this deal is kinda like our U.S. Government. They make the rules and set up everything to benefit themselves w/ cushy do nothing high paying jobs... and then us bottom feeders, (non government employees), get to pay for all of it
Yup... just like our good old uncle Sam for sure.
a couple points I found during my research
1) federal law changes from a couple years ago added more reporting requirements onto pension funds, more requirements equals more costs. So the big change for us is that things will go from "Funds" to "Trusts". The difference is that funds are publicly traded (under the rules of the SEC), while Trusts are private investments not regulated by the SEC (regulated by another government agency). The trusts do not carry a stock symbol and will not be visible on any stock reporting service. All updates will be generated in a quarterly statement or through a request to T Rowe. This change is throughout the investment industry, not just unique to our situation (recent sale to XPO). Trusts have been around for a very long time, just not a buzz word within 401k's until recently
2)The other point of info I found is that a "Trust" within a 401k can not be rolled directly into an IRA, they must be sold or converted. I am still researching this to get a better understanding of this process.
try an internet search of "401k Funds vs 401k Trusts" to learn more
1) federal law changes from a couple years ago added more reporting requirements onto pension funds, more requirements equals more costs. So the big change for us is that things will go from "Funds" to "Trusts". The difference is that funds are publicly traded (under the rules of the SEC), while Trusts are private investments not regulated by the SEC (regulated by another government agency). The trusts do not carry a stock symbol and will not be visible on any stock reporting service. All updates will be generated in a quarterly statement or through a request to T Rowe. This change is throughout the investment industry, not just unique to our situation (recent sale to XPO). Trusts have been around for a very long time, just not a buzz word within 401k's until recently
2)The other point of info I found is that a "Trust" within a 401k can not be rolled directly into an IRA, they must be sold or converted. I am still researching this to get a better understanding of this process.
try an internet search of "401k Funds vs 401k Trusts" to learn more