Company match

[vanillabean]

There was "a notice to Boeing employees informing them that they collectively left $98 million on the table in 2013 by not taking advantage of matching funds in the company's 401(k) plan." That's amazing! "An employee with a base pay of $60,000 is eligible to earn a 75% match on up to $400 a month. The monthly match, $300, amounts to a raise in pay of $3,600 a year. That's the equivalent of a 6% raise — something I doubt employees would turn down if it were offered to them in those terms."

[mongstradamus]

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@Anonymous-own-fico wrote:

There was "a notice to Boeing employees informing them that they collectively left $98 million on the table in 2013 by not taking advantage of matching funds in the company's 401(k) plan." That's amazing! "An employee with a base pay of $60,000 is eligible to earn a 75% match on up to $400 a month. The monthly match, $300, amounts to a raise in pay of $3,600 a year. That's the equivalent of a 6% raise — something I doubt employees would turn down if it were offered to them in those terms."

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Not doing company match is like giving away free money, if you can afford to do it you should try and hit max company match imo. 

[nightglider]

Sadly, I don't think them not taking advantage of the company match is the worst part. I have spoken to some lower enlisted who don't actually know much about the TSP. I fear how few would contribute were they not automatic.

Sometime within my first year of the military, I stopped my TSP contributions because I didn't fully understand what it was and I wanted to see a bigger paycheck. It wasn't until a few months later that I actually started saving money at all (fortunately, I never spent beyond my means). I didn't even start reading about/preparing for retirement until late last year. Fortuantely, I had enough money saved up by then to max out my 2013/2014 RIRA. I don't make nearly enough to max out my TSP, but I at least contribute the same as my RIRA.

Maybe some people get put off by the word 'investing' in 'investing for retirement', or maybe they just think they have time to waste.

[-NewGuy-]

Company match is definitely something that people shouldn't be throwing away... Like everyone else has said, it's free money.

[Anonymous]

My company also in Seattle, just altered their match program from 100% on up to 4% to the NEW plan fo 100% on 2 and 50% on 4. 

I am very grateful for anything and I know this is equal amount of their vested savings and encouraging us to contribute more to the 401k, but I can help but feel we forced to contribute more for the same amount of their contributions. We could be contributing to our choice or IRA investments or otherwise. 

[mongstradamus]

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@Anonymous wrote:

My company also in Seattle, just altered their match program from 100% on up to 4% to the NEW plan fo 100% on 2 and 50% on 4. 

I am very grateful for anything and I know this is equal amount of their vested savings and encouraging us to contribute more to the 401k, but I can help but feel we forced to contribute more for the same amount of their contributions. We could be contributing to our choice or IRA investments or otherwise. 

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i would still try and do up to 4 % in your scenario then switch over to roth ira, hsa, then back to finish off 401k imo. That sucks you don't have 100% up to 4% though:-(

[Anonymous]

Exactly. I've read in a few different forums and blogs recently about that same strategy switching on and off the 401k with the IRA. I'm still pretty new to this stuff and late in the game at 33, so I want to ensure I make smarter choices now and gain some ground I lost. 

[mongstradamus]

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@Anonymous wrote:

Exactly. I've read in a few different forums and blogs recently about that same strategy switching on and off the 401k with the IRA. I'm still pretty new to this stuff and late in the game at 33, so I want to ensure I make smarter choices now and gain some ground I lost. 

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401k match i view as free money so i don't want to give that up :-) I prefer IRA after you hit match because you get to choose what investments you want to put it in. 401k can be limited to what mutual funds you have available. I have been reading up on using HSA as an traditional ira in an way, if you don't withdraw till after 65 i think it is you can withdraw it like 401k or TIRA and get taxed on it, but its growing tax deferred.