Thread regarding Bank of New York Mellon Corp. layoffs

@OP FREE COFFEE hahaha I love how they tout this as something to make us ignore all the negatives. It’s such a joke.

@sn Lively HSA has no fees

@bn
Do yourself a favor and move your HSA to fidelity and avoid the outrageous fees charged by health equity.

@dv
Actually, even with dividend income growth BK is not even a good choice. BNY also is not as reliable with dividend increases and growth either. Yes they increased it recently but it was very modest. With an annual divideny yield of just 2.05% and paying 1.88 a share per year, you would have to have 5400 shares of it (a half a million $$ in net value) just to get paid a measly 10 grand a year in dividend income. There are tons and tons of better choices out there. I can find electric utilities with that pay 3x as much and are far better outlooking. And those companies put this one to shame in terms of management and future revenue. You are totally correct that this place is insanely overvalued and is really not generating new client business or products. It is still just a one dimensional custodian bank that safekeeps assets and data but doesnt own them. Robin and the board are trying to turn it into something it can’t be. And by shedding employees, property and locations, its a temporary money gain only. Merging this company will also be very difficult. The Fed and regulators will not just go along because the investment community says so. Holding a sizeable position of BK in your 401K is pure madness. At worst, you will miss big on safer opportunities forever. At best, BNY compliance and risk review may make it hard or delay you rolling over the 401K barrel into a reliable wealth management firm.

@dd agree. My true value price range for BK is $40-50, it’s insanely overvalued right now, especially if you know how bad the company internally is. R0bin is trying to get the stock over $100 by any means possible to sell off parts of the company, merge, and then exit stage right with the minions into retirement. The only good thing BK has to offer is the dividend yield if you loaded up on shares during the c0vid crash and have an insane cost basis right now, otherwise any good BDC or REIT likely thumps the yield of B N Y.

Buffet closed his position a long time ago. R0bin is out of options if they don’t sell or merge in the next 12 months, if I could afford it, I would love to take out 2-3yr expiring Put options with a strike of $40, but knowing this P0S he’ll probably sell last minute and ruin my position.

Amen Robin’s relative. That D9 is a complete fool and a cherry picking mo--n. And it bears repeating:
****BNY stock did well only in the last 3 years after languishing for 20 years . So unless you invested starting in 2022 , your performance will be pretty abysmal.
BK lagged behind most of its peers on a 5yr or LTD. (Max ) basis . It did better on a 1 year or 3 year basis***
@d9+1jzey483r- as for you, stop trying to come across like you know anything. The world needs fools to laugh at. Stick to being a fool. It’s what you are good at.

@d9 - I am guessing you probably have 1-5 years experience. Just going by your imbecile statements. The facts are follows:

1. BNY stock did well only in the last 3 years after languishing for 20 years . So unless you invested starting in 2022 , your performance will be pretty abysmal.

2. BK lagged behind most of its peers on a 5yr or LTD. (Max ) basis . It did better on a 1 year or 3 year basis

And now the big shock.

That grand run is over. The euphoria from Robin and his minions making BNY a “commercial” bank is now running out of steam. The best people have left. The newcomers are lost and no new business is coming to us. The solution: tout AI and digital. Except Digital is proving to be a lost cause as we are not the only bank for custody of digital assets.

AI has scope but what do you gain by introducing AI into some existing processes to get over a hump. Even if you do, then what?

My prediction is that BK stock won’t cross $105 until May next year . You are better off waiting in any large cap stock. I cannot predict what happens in May 2026.

@cf

Unfortunately, the smart ones are those who can manage their 401k and not laze around as they do at work. Coffee badging mindset does not work in retirement management.

There are tons of satisfied and happy BNY employees who have reaped the benefits in their retirement and ESPP over the last five-plus years. However, you want to characterize and classify it.

And with the possibility of a merger (speculation) with GS, or other M&A activities (NTRS), with the expected Interest rate cuts, one can anticipate a bigger return. I understand that is again speculative, but history supports that.

And the bank going under - well it has been promoted by doom sayers for more than a decade. Well, everyone is holding their breath for the event.

Agreed that one cannot put their nest egg in one stock and the plan itself prevents that in case you are unaware.

You are welcome to hate the firm, its leaders and their policies. But the numbers do not lie

@c5 - sorry boy. You are pretty wrong . I left BNY in April. Moved my 401k to an IRA . All my mutual funds and the BK stock fund were immediately liquidated. I moved the funds to just some well known names including MSFT and AMZN among others . I left a portion Nasdaq 100 fund (QQQ). My resultant position is up by almost 10% in one month . My 401K would have been up by 4% had I left it alone. I am on to better things than BK stock would do for me. Sorry, your theory is no theory at all.. it is a sure shot way to financial doom.

@c5+1jzey483r
LOL.. the A4 commenter is totally right. It is a disastrous strategy to back your retirement on one company stock or have a major holding in it. And in the long haul, BNY underperforms always. All it’s so called growth chunk has been in the last 2.5 years by cannibalizing itself. Yes, numbers do not lie and anyone can see it. This company is a habitual boring laggard in the long run. But by all means, please do put all your simpleton money in BK stock and put your trust in Robin and the board. Your promised land will living out on the interstate under a bridge collecting bottle returns.

@bw while I agree with what you are saying you are also assuming at 50k and 10% a person would get the match. This is not the case at this company. The match is 7% not 10%. So they’d have $3,500 or $7,000 if the make it to January 1, 2026 at 7%.

If someone doesn’t legal try to fight for their match money then 10% of 50k when laid off is $5,000. It might make more sense for someone thinking they will be laid off to split up their % (something like 3% pre-tax, 4% Roth 401k). I’d actually argue that the Roth 401k in this scenario might be the better option. If you are laid off and lose the match at least you’d be able to rollover more Roth money into your own Roth IRA. You’d only lose the match, which isn’t matched as Roth dollars it goes into secondary pre-taxed account in your 401k.
If you go the Roth 401k route, at the very worst you lose the company match, but would get to add $7,000 (Roth IRA yearly max) + whatever you contributed to the Roth 401k in a rollover for calendar year 2026.
Lastly, the 401k funds are awful and most are CIT’s (Trusts) which don’t have any reporting, ticker, or transparency.

The tax break is the only reason to put the money in the 401K over investing in an after-tax IRA, regardless of employer contribution. And it's not a small tax break.. you're essentially putting another 24% (or more, depending on your tax bracket) into your account that you wouldn't have had if you invested in the IRA yourself.

Imagine if you earned $50,000 year and could afford to put 10% of that into your retirement fund. The $5000 pre-tax dollars put into the 401K would only be $3800 if you opted for the post-tax IRA. Over the course of 30 years that annual difference in the 401K would grow to $200,000 more than the IRA, assuming you were invested in the S&P at the current 10% growth average. Always use pre-tax options to invest your money while you are still working.

But once you leave, definitely will it over into an IRA.

@a7 - move your 401K to an equivalent rollover IRA. You will immediately have access to manage your funds with any investment you choose including equities and practically infinite number of ETFs and funds. Do not, and I repeat, do not leave your 401k after you have left the firm. The only loser is YOU!

I don't know if you have access to a Health Savings Account, but if so, contribute enough to your 401(k) to get the full company match, then max out your HSA contribution before doing anything else.

I have $63k in my HSA account, and all but $1000 is invested in a low-cost Vanguard index fund. That money stays with you no matter what.

I was let go from BNY recently: what happens to my 401k?

An excellent and forward thinking question.
Will do my best to answer and at least give you my perspective which I hope guides you. Yes- the company can do this witholding of the match as it sits now. But, yes, you can hire an
Attorney to argue that you not only should get a prorated match but also a better release package in the event you are terminated unfairly. You see, this company is run by the sc-m of the Earth, that counts on you not hiring an attorney and potentially spending more money than it’s worth.. but you should try to get all you can. Having said this, NO MATTER WHAT, DO NOT STOP PUTTING THE MAX YOU CAN INTO YOUR 401K!!! Even if you do NOT get the match, its worth it. Think tax deferred or better!!!!!!! Every bit you sock away in the 401k helps you retire sooner rather than later. Also, call VOYA and sign up for their free professional investment management of your portfolio. It’s free and you get their auto rebalancing. Do not try to manage it all yourself. Also look into using a ROTH strategy with this. With Voya, you can always oversee and change their elections if you like. My big beef with VOYA and BNY’s 401K fund elections is that many of the fund offerings are kind of duplicates of many. Also do NOT hold BNY stock in your 401K. Just don’t do it. Use the 401K to put all you can in there. Don’t stop just because of the chintzy match policy. If you are laid off or 59 1/2 you can roll your 401 into a better professional IM service with no frills. I will not offer those options here. But—-Good luck and happy wealth building.