I am logged on to this forum as SavingUFCWLocal555 because I believe that union labor needs to be protected, sometimes from itself. Like all financial interactions, 401(k)s included, knowing what you are dealing with is more than half the battle. The other is knowing how to react to changes.
My local is now over fourteen months without a contract in an industry that has done remarkably well in these economic times. Wondering if the leadership is knowledgeable enough to cope with the employer's group has prompted me to begin a concerned membership group to help these union officials understand that the old way is not necessarily the right way.
401(k)s can, if used correctly (I also write extensively about this subject at
BlueCollarDollar.com) be very helpful to a retirement plan. They are not going away. If folks put as much money as possible into these plans (at least 5% and this will not alter your take-home pay in many instances), avoid index funds if they have a pension through their employer, avoid
too little risk and never tap it until retirement, they can be very beneficial.
Yet some employees, even if they are covered by a union contract, do not see the importance of investing in as many ways possible. I try to encourage all of the sisters and brothers in my local to take advantage of the plan that is offered to them (even though it doesn't provide a match) but few do.
401(k)s force you to live just a little lower than many of us would like. But it still beats living lower when you can no longer or no longer wish to work.
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