I remember reading some Central States paperwork and it said the average retiree lives 17 years. If that's true you would need $612,000 to make $3000 a month which is approximately the same as the pension. I don't think $612,000 is impossible to achieve with a 401k.
Holland | 401k or teamster pension?
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There is on variable missing from your equation... DIVIDENDS... Using your $612,000 figure and put that into a fund such as the Vanguard Wellington fund Admiral (VWENX) would pay dividends of about $3700 per month... without ever touching the principal. In other words it will last forever. Of course if your smart you should add more money into the fund. Why? that means you own more shares which will provide you with a pay raise each year.
I agree reaching $612,000 in a 401K is very easy to achieve. Most people on on this board can probably achieve double that amount. Which will give an income of double the teamsters pension.
BTW how much does the company you work for send to the Central States per month for your pension?
Thats IF you live only 17 years. I plan on living a whole lot longer than that.
And IF you only need a measly $3000.00 a month to live. I want at least $6000.00. Thats also IF you never get sick. Again IF you put in the maximum.(not likely) There are just too many IF's. I'll be smart and take both.
And IF you only need a measly $3000.00 a month to live. I want at least $6000.00. Thats also IF you never get sick. Again IF you put in the maximum.(not likely) There are just too many IF's. I'll be smart and take both.
imported_Double barrel
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I like to see all driver's get to $600,000 in their retirement,but it highly unlikely.Most will not put in the $12,000 a year that the goverment allows. Pay,family,house payment,etc..most live paycheck to paycheck.Most people start to late and I think the average is a little over $100,000 in the 401k.So good luck and start early.
I am in Central States Pension Fund and I put 6% off the top into my 401k and I have money invested in the stock market also. I have been putting money in my 401K for 15 years. My wife doesn't work but I still save as much as i can. I think by the time I retire i will need every dime i can get my hands on. I am not planing on Social Security Or my Pension to be there when I retire if they are there great more money!
I Plan for the worst hope for the best.
I Plan for the worst hope for the best.
Back when i started in the Teamsters 1967, my wage was only $3.50hr. Pension contributions were not any where close to what they are today. I receice $3,750.00 a month, or $45,000 a year, assuming i live 17yrs, i would have to have $765,000, Quite happy with my Central States Pension. But then again, different strokes for different foakes! Mustache Retired Roadway:smilie_132:
Double barrel brings up a good point. I agree that most working families live paycheck to paycheck. Back when the 401s & IRAs were first starting out it seemed to me that the only people who could afford to invest in them were those who didn't have any kids & their wives worked. The rest of us were lucky if we could afford weekly payroll deductions for credit unions & christmas clubs....I'll probably get beat up for posting this but I doubt that many of the drivers working on jobs like R&L (or any other job that doesn't have a pension plan) can afford to contribute the max to their 401k.
I don't have a fat 401k to go along with my Teamsters pension to retire on (I wish I did). But if I did I would probably be staying awake at night wondering if I had it invested the right way.... This guy has to go all the way to the Supreme Court to try & get justice.
NJ.com: Everything Jersey
WASHINGTON (AP) — The Supreme Court struggled with the changed world of retirement plans Monday, trying to decide whether a worker has a right to sue to recover losses when his instructions on where to invest his retirement money are disregarded
The way the economy is right now we are lucky to have jobs let alone alot of money to put away in a 401k. I believe most can't afford to put away the max and with cost of living going sky high its unlikely it will happen anytime soon. I can't believe the difference in cost of living in just the last few months and its going to get worse. Without the pension the scenario looks grim at best.
imported_Double barrel
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Define Benefit.
If the market drops downwards,moving the 401k lower it makes it hard to know when and how much money you can pull out to retire on.
With a Union and Define benefit plan I will know exactly the amount I receive at retirement.It increases every year I work even in down markets.
A 401k to me is a substitute to inflation and possible no social security.
One more thing is I will never invest in ltl trucking.Stock market is down slightly for the year and ltl trucking stock is off as much 50%.
If the market drops downwards,moving the 401k lower it makes it hard to know when and how much money you can pull out to retire on.
With a Union and Define benefit plan I will know exactly the amount I receive at retirement.It increases every year I work even in down markets.
A 401k to me is a substitute to inflation and possible no social security.
One more thing is I will never invest in ltl trucking.Stock market is down slightly for the year and ltl trucking stock is off as much 50%.
Snortin Nortin
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I was late bloomer to an 401k started at 39 at a previuos job.Went to work at BigR and started out out small 2% got my first pay increse started contrbuting 5%. Soon will get my second pay increase and plan on taking it to 10% and as soon as I hit full pay I will contribue 12% and all the while feeling the effects of my raises without missing the money I've put in. Hopefully that pension will be there for me and if so I figure the 401k was an added bonus.
Better late than never SN.
One other thing I do is every April when we get our raise I increase my 401K contributions by the same amount. I live comfortably enough on what I made before the raise so I figure I can do it after too.Would you rather have to pay for your retirement(401k),or get a pension? Its a no brainer,take the pension.but the vp & t.m. have told so many lies,and harrasssssedd everyone in sacramento california,i dont think we have enough cards.Theers are going to win,im ashamed to wear the reddaway shirt......
If your ashamedto wear the Reddaway shirt - quit. We would all be thankful. Since your dumb
is not smart enough to take tax advantage of 401K, you personally are screwed - dumb Contact a CPA smart guy you don'thave to wait until your 65.
Lucky to be getting paid at all!
If you think things are bad now, just wait. Our Teamsters local thought we made too much money! They said so by calling us a bunch of overpaid cry babies. Well, they fixed that.
Call it what you will, but me and my co-workers who had a minimum of 18 years seniority, have been on the the street since 2002 due to our local presidents attitude, and our replacements were organized by the same local at half of what we were making!
I ain't Ripley, so believe it!
If you think things are bad now, just wait. Our Teamsters local thought we made too much money! They said so by calling us a bunch of overpaid cry babies. Well, they fixed that.
Call it what you will, but me and my co-workers who had a minimum of 18 years seniority, have been on the the street since 2002 due to our local presidents attitude, and our replacements were organized by the same local at half of what we were making!
I ain't Ripley, so believe it!
Lucky to be getting paid at all!
If you think things are bad now, just wait. Our Teamsters local thought we made too much money! They said so by calling us a bunch of overpaid cry babies. Well, they fixed that.
Call it what you will, but me and my co-workers who had a minimum of 18 years seniority, have been on the the street since 2002 due to our local presidents attitude, and our replacements were organized by the same local at half of what we were making!
I ain't Ripley, so believe it!
If you think things are bad now, just wait. Our Teamsters local thought we made too much money! They said so by calling us a bunch of overpaid cry babies. Well, they fixed that.
Call it what you will, but me and my co-workers who had a minimum of 18 years seniority, have been on the the street since 2002 due to our local presidents attitude, and our replacements were organized by the same local at half of what we were making!
I ain't Ripley, so believe it!
Clarification on 401K Connection
The point I was trying to make is to be vigilant when it comes to your wages first. I don't mean to necessarily go for huge wage increases as most would go towards taxes, but at least make sure your wages aren't being reduced. Otherwise, your 401K will definitely suffer.
Do you realize that inflation since 2001 is 36%? That means your expendable dollar is worth that much less. All you have to do is look at food and gas prices to see that. If you doubt those figures, let me know. I'll post an example demonstrating proof positive.
Lower wages plus the loss of spending power through inflation is a double whammy. We can't control the economy, but we can be vigilant when it comes to our personal economics.
So, to protect your 401K or at least the value of it, you need to protect your wages. Don't let your union do to you, what they did to us.
The point I was trying to make is to be vigilant when it comes to your wages first. I don't mean to necessarily go for huge wage increases as most would go towards taxes, but at least make sure your wages aren't being reduced. Otherwise, your 401K will definitely suffer.
Do you realize that inflation since 2001 is 36%? That means your expendable dollar is worth that much less. All you have to do is look at food and gas prices to see that. If you doubt those figures, let me know. I'll post an example demonstrating proof positive.
Lower wages plus the loss of spending power through inflation is a double whammy. We can't control the economy, but we can be vigilant when it comes to our personal economics.
So, to protect your 401K or at least the value of it, you need to protect your wages. Don't let your union do to you, what they did to us.