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Thread: 401k with company match?

  1. #1

    401k with company match?

    You should I continue investing in...

    http://www.marketwatch.com/investing/fund/rerfx

    The company I have has company match, that's the only reason why it even seems appealing. Should I continue invest into it, or just stay out of the 401k game all together?



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  3. #2
    Even TIME magazine had an article about the death of the 401k. 401k's were companies way avoiding giving employees pension plans. That way, they could make more money because their employees were getting funds for their retirement elsewhere. Of course, 401k's aren't the best managed instruments, and are susceptible to market downturns.

    I'm not an expert on them though, so you should stick around for more knowledgeable folks on this forum.
    if modern agriculture continues to follow the path it's on now, it's finished. The food-growing situation may seem to be in good shape today, but that's just an illusion based on the current availability of petroleum fuels. All the wheat, corn, and other crops that are produced on big American farms may be alive and growing, but they're not products of real nature or real agriculture. They're manufactured rather than grown. The earth isn't producing those things.. petroleum is! -Masanobu Fukuoka

  4. #3
    I think you should invest at least enough to get the company match, its basically free money.

    Just the match portion of my 401k, for about 5 years of work is over 20k now, and the stock throws off a 3% dividend (roughly).

    Opinions vary on if you should contribute over what the company matches. If you are young, it might make sense to go with a post-tax roth, rather than a pre-tax ira/401k..

  5. #4
    Quote Originally Posted by BenIsForRon View Post
    Even TIME magazine had an article about the death of the 401k. 401k's were companies way avoiding giving employees pension plans. That way, they could make more money because their employees were getting funds for their retirement elsewhere. Of course, 401k's aren't the best managed instruments, and are susceptible to market downturns.

    I'm not an expert on them though, so you should stick around for more knowledgeable folks on this forum.
    Time Magazine is a liberal piece of trash.

    401Ks allow the individual to take responsibility for his/her own retirement. They were meant to replace the company paid retirement plans that were not portable and are now largely insolvent. This is a much better way to fund retirement then pension plans ever were.

    I manage my own 401K, so I don't have anybody to blame for losing money in market downturns, but the bigger point is that the market downturns don't even matter in the short term when you're saving for retirement, a long term goal. Dollar cost averaging means you buy when it's high, you buy when it's low but as long as you keep buying you'll come out ahead.

    401(k)s are awesome. I don't know what the OP's company match is, but you should maximize on it. Ours was $1 for $1 IIRC - where else was I going to put my money and double it instantly?

    Plus the income tax is deferred. Unless you plan on having a bigger taxable income after you retire than you do while you're working, this could mean you'll only pay 15% in income tax rather than 27% - more money for you.

    Like I said, Time Magazine is a liberal piece of trash.
    * Enforce Border Security – America should be guarding her own borders and enforcing her own laws instead of policing the world and implementing UN mandates.

    * No Amnesty - The Obama Administration’s endorsement of so-called “Comprehensive Immigration Reform,” granting amnesty to millions of illegal immigrants, will only encourage more law-breaking.

    * Abolish the Welfare State – Taxpayers cannot continue to pay the high costs to sustain this powerful incentive for illegal immigration. As Milton Friedman famously said, you can’t have open borders and a welfare state.

    * End Birthright Citizenship – As long as illegal immigrants know their children born here will be granted U.S. citizenship, we’ll never be able to control our immigration problem.




    Reprinted from http://www.ronpaul2012.com/the-issues/immigration/ [Nov. 29, 2011]

  6. #5
    My problem with 401ks is that you are not given many options. Some people literally get 3 funds to choose from. If its my money, why can't I invest in individual stocks?

  7. #6
    Quote Originally Posted by stag15 View Post
    My problem with 401ks is that you are not given many options. Some people literally get 3 funds to choose from. If its my money, why can't I invest in individual stocks?
    Because the employer sets up the plan, you don't. And it isn't your money until you retire.

    If you want to invest in individual stocks, then go ahead. If you want your employer to offer a plan that allows more options, then crab at her. But if you want to guarantee yourself a healthy guaranteed return, then you should put enough in your 401k to maximize the corporate match.

    You shouldn't have all your money in one place anyway.
    * Enforce Border Security – America should be guarding her own borders and enforcing her own laws instead of policing the world and implementing UN mandates.

    * No Amnesty - The Obama Administration’s endorsement of so-called “Comprehensive Immigration Reform,” granting amnesty to millions of illegal immigrants, will only encourage more law-breaking.

    * Abolish the Welfare State – Taxpayers cannot continue to pay the high costs to sustain this powerful incentive for illegal immigration. As Milton Friedman famously said, you can’t have open borders and a welfare state.

    * End Birthright Citizenship – As long as illegal immigrants know their children born here will be granted U.S. citizenship, we’ll never be able to control our immigration problem.




    Reprinted from http://www.ronpaul2012.com/the-issues/immigration/ [Nov. 29, 2011]

  8. #7
    Quote Originally Posted by jbrace View Post
    You should I continue investing in...

    http://www.marketwatch.com/investing/fund/rerfx

    The company I have has company match, that's the only reason why it even seems appealing. Should I continue invest into it, or just stay out of the 401k game all together?
    Looks like a winner to me! The company match is guaranteed return, and it looks like a low cost fund. Good to have an international Euro Pacific fund in your portfolio...

    RERFX - Total Expense Ratio: 0.54%
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
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    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  9. #8
    Quote Originally Posted by angelatc View Post
    Because the employer sets up the plan, you don't. And it isn't your money until you retire.

    If you want to invest in individual stocks, then go ahead. If you want your employer to offer a plan that allows more options, then crab at her. But if you want to guarantee yourself a healthy guaranteed return, then you should put enough in your 401k to maximize the corporate match.

    You shouldn't have all your money in one place anyway.
    There are plenty of 401k's that allow dozens of options, get a group of interested employees together and push the company in that direction. On the one hand I agree that money isn't money until it's actually in hand, and 401k's should be thought of as 'paper wealth' and managed accordingly; on the other hand all employee groups would do well to simply tell the employer to stop playing 'matching funds' games and simply compensate the employees the full amounts, and there is absolutely nothing preventing the employee group from negotiating its own 401k if so desired by a majority, choosing the provider and plan of it's choice, and having that tax-deferred status. Such self-governed plans and groups already exist in good number, with no employer directives whatsoever.



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  11. #9
    Just wondering...

    If someone gets a divorce can the Judge rule that the other party is entitled to half of your 401k?
    "A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington

  12. #10
    Quote Originally Posted by AmericasLastHope View Post
    Just wondering...

    If someone gets a divorce can the Judge rule that the other party is entitled to half of your 401k?
    Probably.

    It may depend on how it is set up, I had one company that I could not take out a loan against my 401(k) without a co-sign from my wife, but my current company I can just request the loan.

    In a divorce, I don't think anything that the other parties lawyer can think of is out of bounds.
    "The journalist is one who separates the wheat from the chaff, and then prints the chaff." - Adlai Stevenson

    “I tell you that virtue does not come from money: but from virtue comes money and all other good things to man, both to the individual and to the state.” - Socrates

  13. #11
    Quote Originally Posted by AmericasLastHope View Post
    Just wondering...

    If someone gets a divorce can the Judge rule that the other party is entitled to half of your 401k?

    Yes, it's called a QDRO (Qualified Domestic Relations Order).

  14. #12
    Quote Originally Posted by jbrace View Post
    You should I continue investing in...

    http://www.marketwatch.com/investing/fund/rerfx

    The company I have has company match, that's the only reason why it even seems appealing. Should I continue invest into it, or just stay out of the 401k game all together?

    Invest up to the match amount in your 401k. If you want to save more than that, open an IRA. Invest as much in retirement accounts because it lowers your AGI and means less taxes you will currently pay to the gubment. You'll have to eventually pay taxes when you retire or hit age 70 1/2, which ever comes first.

    If you think tax rates are going to be higher when you retire then open a Roth IRA and invest post tax dollars.

    Or blow all of your money on weed and beer.

  15. #13
    Quote Originally Posted by KenInMontiMN View Post
    There are plenty of 401k's that allow dozens of options, get a group of interested employees together and push the company in that direction. On the one hand I agree that money isn't money until it's actually in hand, and 401k's should be thought of as 'paper wealth' and managed accordingly; on the other hand all employee groups would do well to simply tell the employer to stop playing 'matching funds' games and simply compensate the employees the full amounts, and there is absolutely nothing preventing the employee group from negotiating its own 401k if so desired by a majority, choosing the provider and plan of it's choice, and having that tax-deferred status. Such self-governed plans and groups already exist in good number, with no employer directives whatsoever.

    That's peachy keen. But with the law as it stands now, it behooves both the employer and the employee from a tax standpoint to participate in a 401(k) plan rather than just doling out big chunks of cash.

    And like I said now, if you don't like the benefits package your employer offers, go find a different job. It's the way the market works.

    From the employer's stand point, it also serves as a tool to retain employees, because you don't get to keep the matching money until you've been with the firm for a while.

    I'd be totally pissed if my employee group decided they wanted to abolish my 401(k) to give themselves raises. I'd have a huge tax liability and absolutely no incentive not to spend all the money on booze and strippers.
    * Enforce Border Security – America should be guarding her own borders and enforcing her own laws instead of policing the world and implementing UN mandates.

    * No Amnesty - The Obama Administration’s endorsement of so-called “Comprehensive Immigration Reform,” granting amnesty to millions of illegal immigrants, will only encourage more law-breaking.

    * Abolish the Welfare State – Taxpayers cannot continue to pay the high costs to sustain this powerful incentive for illegal immigration. As Milton Friedman famously said, you can’t have open borders and a welfare state.

    * End Birthright Citizenship – As long as illegal immigrants know their children born here will be granted U.S. citizenship, we’ll never be able to control our immigration problem.




    Reprinted from http://www.ronpaul2012.com/the-issues/immigration/ [Nov. 29, 2011]

  16. #14
    Quote Originally Posted by jbrace View Post
    You should I continue investing in...

    http://www.marketwatch.com/investing/fund/rerfx

    The company I have has company match, that's the only reason why it even seems appealing. Should I continue invest into it, or just stay out of the 401k game all together?
    i'd be surprised if they don't offer a money market type account. if you're uneasy about the equity markets you should still - if you can afford it - take advantage of this and perhaps allocate the funds to the money market account.

    years ago when my credit union was finally allowed (by the gov't) to offer 401ks to the employees my input was to make sure that a foreign fund of some kind was included. of course, it has been the best performing - or the least poor performer - of the bunch.

  17. #15
    Quote Originally Posted by surf View Post
    i'd be surprised if they don't offer a money market type account. if you're uneasy about the equity markets you should still - if you can afford it - take advantage of this and perhaps allocate the funds to the money market account.

    years ago when my credit union was finally allowed (by the gov't) to offer 401ks to the employees my input was to make sure that a foreign fund of some kind was included. of course, it has been the best performing - or the least poor performer - of the bunch.
    They have a wide variety type of funds, I'll get the list of them and look more into it. I can afford it, but I just don't wanna be wasting my money. Then again, if things really tank that bad, I don't think I will be worrying about money.

  18. #16
    If your going to do it. Put in the minimum amount that the company will match. Put yours in something that is safer and if you must "play", do it with what the company pays.
    Whenever you find yourself on the side of the majority, it is time to pause and reflect - Mark Twain



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