401k Question...

GermyBoy

Banned
Jun 5, 2001
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Okay, I just got a part-time job on campus and they are offering a 401k program. They don't match until after a year, but I have plenty of spending money saved up, and I am only working to enhance my mind (seriously) and spend some time out of my room.

Should I put a HUGE chunk of my earnings into the 401k plan, or not? I figure that if I get a good start now, I won't have to worry so much later.

What do you think?
 

XZeroII

Lifer
Jun 30, 2001
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If they aren't matching, then put as little as you can in. Then, a year from now, when they start matching, put like 75% in.
 

Jugernot

Diamond Member
Oct 12, 1999
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There are MUCH better ways to invest your money than a nonmatching 401k plan. You should contact a local investment rep (Edward Jones, etc.) for details.

Right now, I'd invest the smallest amount possible each month just to be part of the 401k, so after one year, they will match. Then, only invest the % they will match, as I said there are better ways to invest your money.
 

GermyBoy

Banned
Jun 5, 2001
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Originally posted by: Jugernot
There are MUCH better ways to invest your money than a nonmatching 401k plan. You should contact a local investment rep (Edward Jones, etc.) for details. Right now, I'd invest the smallest amount possible each month just to be part of the 401k, so after one year, they will match. Then, only invest the % they will match, as I said there are better ways to invest your money.

Well if I don't want to spend money to have my money invested, would this be a good way to go or you would still use an investment firm?

Thanks for the help.
 

Jugernot

Diamond Member
Oct 12, 1999
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I'd still go with an outside firm as the fees don't make that much of a difference. Probably only a few % commision, which you will make many times over by not going with the nonmatching 401k.

 

RossMAN

Grand Nagus
Feb 24, 2000
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Originally posted by: GermyBoy
Originally posted by: Jugernot
There are MUCH better ways to invest your money than a nonmatching 401k plan. You should contact a local investment rep (Edward Jones, etc.) for details. Right now, I'd invest the smallest amount possible each month just to be part of the 401k, so after one year, they will match. Then, only invest the % they will match, as I said there are better ways to invest your money.

Well if I don't want to spend money to have my money invested, would this be a good way to go or you would still use an investment firm?

Thanks for the help.

I would contibute a minimal amount right now and consider increasing that after employer matching begins (1yr).