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FedEx Freight | Pension 401k or portable pension

Which one are you choosing and why?

  • Total voters
    88
  • Poll closed .
dokman said:
401 k has far more options verses a pension.
Tax deduction at contribution time.
Able to vary amount withdrawn as long as RMD is met.
Can wait and draw as needed if market is going strong.
Remaining balance passes to heirs.
The more you work ( ie linehaul) the more that goes in your account.
If for any reason you leave company 401 will keep growing but your pension is frozen when you leave.
Long list of advantages.
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Also, full inheritability with 10 plus years to withdraw. So if your spouse is younger, and you pass on first, she can delay withdrawals to keep money invested longer. Then when she kicks the proverbial bucket, your kids or her boy toy can do the same...lol about the boy toy.
 
FedexFlipper said:
I keep telling my wife she didn’t marry a Fedex pilot lol
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You're doing it wrong. All you do is up the 401K, throw a little in the stock purchase plan and a little in a separate account for a webull account and when she asks why your net is so low just say "taxes".

I gross between 1800 and 2100 a week. As soon as I hit top rate, I moved everything around and when she asks why I'm only bringing home 800-1,000 a week I say "we're in that new tax bracket, babe" and walk away.

When she asks to see the paystubs, I'm busy or the app isn't working. If I netted what I'm supposed to net, she'd go crazy buying all types of crap. Instead, I make sure we're paycheck to paycheck with a nest egg that gets healthier every week.

The goal is to be out by 55.
 
riolake said:
Someone double check my math,
Started in 1996 = 25 years
49 years old 49+25= 74
But remember numbers for the pension are calculated May 31st of the prior plan yearly
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riolake said:
Someone double check my math,
Started in 1996 = 25 years
49 years old 49+25= 74
But remember numbers for the pension are calculated May 31st of the prior plan year
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I’ll be at the 75 mark before may 31
 
Purplepromised said:
Got 16 years until retirement and I'm keeping pension. Was going to say why is this even a debate the other way.
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Pension you don't have any control over it, you get about 2% on your money a year. They can stop putting anything in if They chose to. 401k in mutual funds you want loose anything as long as you don't sell. Look at covid-19 shutdown,how much did it drop? You didn't loose unless you got out. Look at it now.
 
fireman said:
Pension you don't have any control over it, you get about 2% on your money a year. They can stop putting anything in if They chose to. 401k in mutual funds you want loose anything as long as you don't sell. Look at covid-19 shutdown,how much did it drop? You didn't loose unless you got out. Look at it now.
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You get 1% every quarter plus your percentage of pay June 1st which should be more than the 4 1/2% extra they’ll give you to take new plan, I like the 5-6% free money in the pension
 
fireman said:
Pension you don't have any control over it, you get about 2% on your money a year. They can stop putting anything in if They chose to. 401k in mutual funds you want loose anything as long as you don't sell. Look at covid-19 shutdown,how much did it drop? You didn't loose unless you got out. Look at it now.
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If they stop contributing to it, you'll just be put in the new 401. Not sure why this is a concern.
Also, your math is off.

Staying with the pension absolutely makes sense for a 20yr employer with 15 to go.
I'm not one to defend the pension, as it's pretty weak, but while the return is lower, the contribution/return is guranteed, the #s are set, as opposed to the market.
Yes, historically you can do 10%+ return a year, and it will LIKELY continue, but not definite.


Do the math, if it's anywhere close to break even with the pension at age 61-65,I'd take the pension all day.


Imo, the only people with a choice are the 10yr employees with 20+ to go. Theoretically, the new 401 should come out ahead.

New guys, 401 all the way, especially if you hire on after age 35. The pension will never amount to ::shit::.

Guys with 20 in, and 15-20 to go? Pension.

Guys within 5yrs of retirement? Don't touch a damn thing.
 
No F-bdy Bs said:
If they stop contributing to it, you'll just be put in the new 401. Not sure why this is a concern.
Also, your math is off.

Staying with the pension absolutely makes sense for a 20yr employer with 15 to go.
I'm not one to defend the pension, as it's pretty weak, but while the return is lower, the contribution/return is guranteed, the #s are set, as opposed to the market.
Yes, historically you can do 10%+ return a year, and it will LIKELY continue, but not definite.


Do the math, if it's anywhere close to break even with the pension at age 61-65,I'd take the pension all day.


Imo, the only people with a choice are the 10yr employees with 20+ to go. Theoretically, the new 401 should come out ahead.

New guys, 401 all the way, especially if you hire on after age 35. The pension will never amount to ****.

Guys with 20 in, and 15-20 to go? Pension.

Guys within 5yrs of retirement? Don't touch a damn thing.
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Generally good advice, except the "window" of consideration is a bit wider, IMHO.

The variables to consider:

Pension - you MUST consider how long (age + tenure) till you earn max contribution. See Chart below. Age alone matters too as experts advise moving to safety as we near retirement.

401 k - How WILL you invest? High risk vs safe, or some where in between? If you are an "all safe" kinda guy, you'll get very low returns. Far less that the 4%+ from Pension.

rknR8pW.jpg


The extremes on either end are easy, I think. Anywhere in the middle, it gets personal, based on: individual situation/risk tolerance/current mix/time left.

If you are relatively young, the 401 k should win by a long shot, you get big match right away, riding long term gains, and (in all honesty) you might not work here long enough to get enough out of pension to offset the match from the get-go..

If it's a close call, I'd lean toward current pension/401 k mix, only because it's as safe as the safest 401 option & pays a lot more than that safe selection, Saving Trust II.
 
SwampRatt said:
Generally good advice, except the "window" of consideration is a bit wider, IMHO.

The variables to consider:

Pension - you MUST consider how long (age + tenure) till you earn max contribution. See Chart below. Age alone matters too as experts advise moving to safety as we near retirement.

401 k - How WILL you invest? High risk vs safe, or some where in between? If you are an "all safe" kinda guy, you'll get very low returns. Far less that the 4%+ from Pension.

rknR8pW.jpg


The extremes on either end are easy, I think. Anywhere in the middle, it gets personal, based on: individual situation/risk tolerance/current mix/time left.

If you are relatively young, the 401 k should win by a long shot, you get big match right away, riding long term gains, and (in all honesty) you might not work here long enough to get enough out of pension to offset the match from the get-go..

If it's a close call, I'd lean toward current pension/401 k mix, only because it's as safe as the safest 401 option & pays a lot more than that safe selection, Saving Trust II.
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Absolutely.
I was working under the assumption that if you're bothering to invest in the 401 at all, you should at least be at a 7‰ contribution before the match. Traditional or new.

The online calculation tool is very useful.

As you said, people at either end have a clear, obvious choice.
My personal situation would have been $1.51mil at age 65 with the new 401 match, or $1.49mil with the pension.
Only a $20,000ish difference,,,,, ASSUMING the market gave me an overall 10% return between now and then.

$20k difference?
Naah, I'll eat that and take the guranteed match.
Even then, I'd still be getting 3.5% match on my 401,and the market could do more than 10% return, and I could come out ahead with the pension.
 
The tool is not accurate. It figures your contribution at 6%. It should allow you to enter a higher amount to match what you put in the 401. With the flaw I come out $4000 more by switching to the new match.
 
No F-bdy Bs said:
Absolutely.
I was working under the assumption that if you're bothering to invest in the 401 at all, you should at least be at a 7‰ contribution before the match. Traditional or new.

The online calculation tool is very useful.

As you said, people at either end have a clear, obvious choice.
My personal situation would have been $1.51mil at age 65 with the new 401 match, or $1.49mil with the pension.
Only a $20,000ish difference,,,,, ASSUMING the market gave me an overall 10% return between now and then.

$20k difference?
Naah, I'll eat that and take the guranteed match.
Even then, I'd still be getting 3.5% match on my 401,and the market could do more than 10% return, and I could come out ahead with the pension.
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At that point you can stay in the current plan and up your 401k 1% and that difference goes away. Plus you stay a little more diversified.
In a way I wish I had an option but with the little time I have with the company its new 401 all the way.
 
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