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Who'd pass up "free" money? More people than you might think. Nearly a third of American workers fail to take advantage of 401(k) plans.
Never mind that employers typically match a worker's contributions with hundreds or thousands of dollars a year. Never mind that employees don't have to do anything to qualify other than stash money away for retirement. For a variety of reasons, including inertia and ignorance, many workers don't take the perk.
Even of those who do sign up, about one in five doesn't contribute enough to meet their companies' full match, according to a new survey by the Hewitt Associates human resources firm.
Who'd pass up "free" money? More people than you might think. Nearly a third of American workers fail to take advantage of 401(k) plans.
Never mind that employers typically match a worker's contributions with hundreds or thousands of dollars a year. Never mind that employees don't have to do anything to qualify other than stash money away for retirement. For a variety of reasons, including inertia and ignorance, many workers don't take the perk.
Even of those who do sign up, about one in five doesn't contribute enough to meet their companies' full match, according to a new survey by the Hewitt Associates human resources firm.
My company matches dollar for dollar first 3%, then 50 cents for every dollar for the next 2%--I IMMEDIATELY signed up for 5% of my pay--it's been a little hard living w/o the extra $$ in my paycheck--but I'm getting FREE money from my company. It's about the only good benefit they have. Best part is, everyone is 100% vested for all of it immediately. So far, I've put in around $550, and there's just over a thousand in it. Can't ask for a better deal!
My company matches almost 3.85 to every dollar. But since I havent had enough time with them, I cant get it yet.
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I.D. badges are long overdue. Security in this office park is a joke. Last year, I came to work with my spud gun in a duffel bag. I sat at my desk all day, with a rifle that shoots potatoes at 60 pounds per square inch. Can you imagine if I was deranged? - Dwight K. Schrute
WOW!!!! $3.85 matched to every dollar you put in? That has to be the best 401K in the country.
It is.
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I.D. badges are long overdue. Security in this office park is a joke. Last year, I came to work with my spud gun in a duffel bag. I sat at my desk all day, with a rifle that shoots potatoes at 60 pounds per square inch. Can you imagine if I was deranged? - Dwight K. Schrute
My company matches almost 3.85 to every dollar. But since I havent had enough time with them, I cant get it yet.
Wow wherever you work must be great.
I've been at my current company nearly 5 1/2 years and we don't match at all. EVery so often someone will ask the question at a all hands meeting and the CEO consistently says no, we're not considering doing it.
man - must be nice - mine only matches 50% - up to 5%...
Yeah, it's very nice.
I keep telling my cousin to put money in her retirement plan. She's 29 and was talking the other day about retiring when she's 55. LOL! My aunt (her mom) looked at her like she was from a different planet. Great idea, but ya gotta do more than say it ... you gotta have a plan!
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Sometimes you just gotta remember ...
I keep telling my cousin to put money in her retirement plan. She's 29 and was talking the other day about retiring when she's 55. LOL! My aunt (her mom) looked at her like she was from a different planet. Great idea, but ya gotta do more than say it ... you gotta have a plan!
That's the main reason why I started putting in the 5% as soon as my company offered it. I'm 33, and have $0 in savings, etc. and I knew I had to do something, or I'd be working until I died, and even death would be sooner rather than later if I'm never able to retire. I know what I'm doing now is not nearly enough yet, but it's a start, and hopefully I'll be able to afford more soon!
That's the main reason why I started putting in the 5% as soon as my company offered it. I'm 33, and have $0 in savings, etc. and I knew I had to do something, or I'd be working until I died, and even death would be sooner rather than later if I'm never able to retire. I know what I'm doing now is not nearly enough yet, but it's a start, and hopefully I'll be able to afford more soon!
There is a rub to that though, I've been putting in money to a 401k and an IRA since I think 21 or 22. I did once cash in a 401k to buy a Mustang but I was 23 and too dumb to realize what substantial penalties for early withdrawal really looks like until it was too late(loved the car though).
I haven't had company matching for over 5 years but my 401K is around 90K and my IRA is over 70K. And I gotta tell you everytime I get a statement I look at it and think "wow that's a lot of money", and then I think "but what the hell good is it doing me now at 39 1/2?" I think IRA is 59 1/2 and 401K 62 before you can start withdrawing without penalty?
There are some benefits, cuts your taxes, you can take loans against it, 10K towards a first house purchase, but I stopped contributing the 2K a year into my IRA about 5-6 years ago because it makes a big difference in my current life to have that 2K.
If you can afford to do it by all means do it but I think Suze Orman really overstates it when she tells everyone to do it no matter what, some people really can't afford to put that money aside.
dreamcastrocks--My Hero!!
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