Lowes mandatory "retirement" fund

Joined: 04 Feb 2008 Posts: 90

I received a letter from Lowes today, stating that if I fail to decline their 410K plan (in writing), they will automatically deduct 1% from pay. I am not a fan of "get rich quick" 401K plans. Lowes "haydays" are over as are most companies are. I am a vested pension guy. Pensions are unheard of these days since mostly only Unions had them. Now, few Unions, so few pension plans. Lowes is looking everywhere to dig into the employees pockets for their personal gain. This is evinced by this letter and their mandatory direct deposit program. Lowes, how Low can they go"? Doh!

Joined: 05 Feb 2008 Posts: 59

then decline it and move on!!!!!!!!!!!!!!!!!!!!

Joined: 06 Jun 2008 Posts: 2

First of all, participation in the Lowe's 401(k) plan is not mandatory hence the letter you received. It's an opt-out plan that automatically covers the other 95% of us without pension plans.

The 401(k) is anything but a get rich quick scheme. Most workers at Lowe's are under 59 1/2 years old, which means they can't withdraw money from the plan without incurring a 10% penalty on top of owed taxes. That pretty much rules out the "get rich quick" point you made.

Now even if you're over 59 1/2 years old, you can contribute up to the age of 70 into the various funds that are offered in the plan. So no, you can invest in funds that have no Lowe's stock in their portfolio's. Once again, a choice where the company empowers you to make a decision.

Lastly, Lowe's matches that whopping 1% deduction from your paycheck at 100% in case you don't want to take the 5 minutes out of your day to decline being enrolled into the 401(k) plan. What does that mean? It means if you contribute $15 per paycheck to the plan, assuming $15 is 1% of your Gross Pay, then Lowe's will give you a free $15 dollars to match your contribution. In addition, that whopping 1% is non-taxable until you starting drawing on the 401(k).

In other words, your complaining that Lowe's is being pro-active with your retirement and giving you the option to opt-out of a deal in which you immediately double your money.

Joined: 16 Jun 2008 Posts: 10

I just declined! Hooray for keeping all my paycheck.

I don't make near enough at Lowes to do something like this. I'm just going to wait until after I get out of college and get a permanent job to start stuff like this.

And yeah, it did piss me off too when I got that letter saying they were going to take 1% out of my check. They should have made opting in an option and not opting out. idiots.

Joined: 04 Feb 2008 Posts: 90

I just declined on "Lowes Life" (not the same as your life) for my required 1% 401K deduction. Usually, when you do not sign up for something, it means "I do not want it". Lowes can not say NO to digging into your paycheck, personal life, etc. For Lowes it is "Lowes life or no life".

Joined: 01 Feb 2008 Posts: 546

This seems a bit like the rebate philosophy to me. They sign you up for something and it's up to you to opt out of it. Shouldn't we opt in if we want to participate? I'm thinking that they are hoping that many of us will not be opting out. This entitles them to use our money as they please to help increase their portfolios. What is wrong with this picture? Just playing devils advocate here.

Joined: 29 Nov 2003 Posts: 164

have you guys been living under a rock somewhere??? Most companies no longer offer pensions of any type. A 401k is your only option for savings that lowers your taxes on your paycheck. Every tax advisor and investment counseler out there will tell you you are a fool to give away a 100% match to your amount and expecially if it lowers your taxes to boot. At $15 a week, you put in $780 a year. So does the company. You now have $1560, plus you are giving the gov a little less in taxes too. After taxes, how much of that original $15 do you think you really see anyway?

Joined: 04 Feb 2008 Posts: 90

I do not live under a rock, but I do explore caves and get out to see the sunlight. Pensions were eliminated by companies because they had no control (they can not put their greedy hand on it) over the money in the pension funds. ERISA requires a company with a pension program to have a set amount in it for covering pension payouts and is untouchable by the company. 401K's allow companies to control YOUR money. Your 401K is worth only what the stock is worth. If it bottoms out, so does your 401K. I wonder how many people literally had heart attacks when their 401k went "belly up" when the company it was invested in went under. A 401K is only good as long as a company continues to grow. Most companies, at least in the USA, have reached their maturity. Some are going down the drain, along with their employees 401K's. Also 401k programs promote "you are an employee/owner". You own nothing but the piece of paper the 401k is written on UNTIL you cash it in, the company owns it. No guarantee, no nothing. When you "retire", your 401k will rise and fall, probably fall in most cases. You wake up on morning saying,
"I have lots of money" and the next week losing half of it in a stock collapse. That is why Bush is pushing to invest your Social Security into investment programs. You give your future to the greedy corporates now. Companies like using other peoples money, not theirs. I have a pension and health insurance from a company that I retired from under a Union contract. When you "retire' from a company with a 401k, that is all you have, a 401K. No insurance comes with it and as we all know, health insurance does not come cheap. Weigh that into your 401k planned retirement. Before Unions come along in America, there were not any pension and insurance programs. Unions brought that into being. Now, since Unions are on the decline, along with decent paying jobs, pensions are disappearing and being replaced with 401k programs. Most do not match 100% and any match is usually at a low percentage. It is a shell game that America has bought into. As it has been said, "if your forget history, you are doomed to repeat it". Rock on!

Joined: 15 May 2005 Posts: 89 Location: Georgia

What the F are you even talking about? Who gives a shit about your "union" retirement? This is a 401k plan. You have a choice as to how you invest. Get a life or get the hell off this board.

Joined: 29 Nov 2003 Posts: 164

Anyone who chooses to put their 401k money solely into the stock of the company they work for is foolish - think Endron. But I'd still enroll for what ever percentage of my paycheck the company would make a 100% match to. The company doesn't hold that money--A financial group like Fidelity or Morgan Stanley does. A doubling of my money for no more effort than to 'automaticlly have it deducted from my pay is still a no brainer. And in some cases it can be used to lower your taxes. At a 33% tax rate, that $15 donation only cost you about $10 since Uncle Sam would have taken the other $5 anyway and you wouldn't have seen it. My $15 and their $15 match get to earn interest for years before the government gets to see their share.
Those pension jobs aren't out there any more and even if you get one now, it doesn't mean it won't drop the pension part a few years later. And you're right, you're going to need money to help pay for that Health care that doesn't exist out there either, So I hope you didn't turn your nose up at the Flex Care Spending Account program either.

Joined: 04 Feb 2008 Posts: 90

I do not have flex care. My insurance is Blue Cross/Blue Shield which cost $60 per month for wife and myself. I understand that some prefer 401K plans but that is not what I worked for 30 years to get. Most companies prefer you to purchase at least 50% of their stock when using 401K plans. Most financial planners will tell you not to invest in the company you work for. Yes, I am "pension" guy but I will not get the "*@?!" off the board. I believe this is still America, at least somewhat, where we can express our opinions. All opinions should be honored. I learn from others experiences on this board. I do not direct them to hell, most can find their way there by themselves. Sadly, this country and the ethics of corporate America, are going back to the turn of the 20th century. No insurance, no pension unless you want to fund it yourself, no representation in the workplace, 12 hour or more work days, no overtime pay ( unions have overtime over 8 hours, non union establishment is overtime over 40 hours or none at all) in some sectors of the workplace ( and was not a suit brought against Lowes for working people off the clock WITHOUT PAY?), safety as long as it does not interfere with work and profits. What is next? Company housing and company money? If you do not like Unions, so be it. I have worked both Union and non Union, and an Union shop is much, much better. This is just some food for thought.

Joined: 05 Feb 2008 Posts: 59

Joined: 15 May 2005 Posts: 89 Location: Georgia

No mole, ass.

Joined: 04 Feb 2008 Posts: 90

No mole, no ass, just the facts ma'am, just the facts.

Joined: 22 Dec 2007 Posts: 461