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Ford To Announce 25,000 Job Cuts

December 5th, 2018 | Leave a comment.

On a day when US and European auto stocks rallied following President Trump’s tweet that China might soon agree to reverse its tariffs on US-made cars, Morgan Stanley has published a report that further justifies the short-term bull case for autos while possibly infuriating President Trump.

After Ford successfully spun its latest “restructuring” as a jobs-neutral, union-endorsed shifting of employees from one factory to another, one analyst at Morgan Stanley is calling “bulls***”, writing in a report that the Detroit automaker could soon announce an even larger round of job cuts than rival GM,which famously incurred the wrath of President Trump last week when it announced that it planned to shutter five North American factories and fire 14,700 US workers (the job cuts would affect both hourly blue-collar workers as well as white-collar salaried workers).

Source – ZeroHedge


What you need to know!

Ford Retirement Plan is a defined contribution plan with a profit-sharing component. This plan has a BrightScope Rating of 61.  For the average 401k participant, the 31 point difference between this plan’s BrightScope Rating (61) and the top rated plan (92) could equate to 19 years of additional work and/or $136,211 in lost savings.

Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees is a defined contribution plan with a profit-sharing component, 401k feature, and ESOP component. This plan has a BrightScope Rating of 67.  For the average 401k participant, the 25 point difference between this plan’s BrightScope Rating (67) and the top rated plan (92) could equate to 17 years of additional work and/or $85,896 in lost savings.

Ford Motor Company Savings and Stock Investment Plan for Salaried Employees is a defined contribution plan with a profit-sharing component, 401k feature, and ESOP component. This plan has a BrightScope Rating of 84.  For the average 401k participant, the 3 point difference between this plan’s BrightScope Rating (84) and the top rated plan (87) could equate to 3 years of additional work.

The plans administrator (for all of the above 3) is Robin Wood and is handled in Dearborn, MI.
One of the key concerns is that the plan only has 20 to 23 investment options (depending on the plan) which is common for most 401k type plans.

Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.

With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.

For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.

Wishing you the best.

Doug Reed, CRPC, AAMS

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