401k vesting

[Avalon]

My company did 4% matching at 100% every paycheck, and 2.5% at 100% of your annual salary once a year, so if you maxed it out and stayed the year, you'd get 6.5% total matched. No vesting, it was yours immediately.

 

[jpiniero]

You know, I was thinking about it, 401k is definitely one of the things that's going on the chopping block once the next recession comes and employees turnover. Hell, maybe even benefits in general. Companies are going more and more towards contract work where you get no benefits.

 

[s0me0nesmind1]

You know, I was thinking about it, 401k is definitely one of the things that's going on the chopping block once the next recession comes and employees turnover. Hell, maybe even benefits in general. Companies are going more and more towards contract work where you get no benefits.

Wut? So you're thinking they will take away 401k as a benefit?

So what will they do as a benefit for retirement? Or just get rid of it altogether?

I honestly don't think were doing away with the 401k AAAAAAAAAANYtime soon.

Companies probably like contract work in general because it's a hell of a lot easier to get rid of a problem employee when they have a term limit. I agree that's a problem, and I do fear stuff like that. The concept of going through a long-drawn out typical interview process of 3+ interviews, phone calls, in-person, etc... All to be given a 6-month contract makes me cackle with laughter when I get those "opportunities" from recruiters. Yeah, no, never.

 

[jpiniero]

Wut? So you're thinking they will take away 401k as a benefit?

Yeah. I guess it could be spun that (lets face it) anyone under 40 now isn't going to retire.

 

[s0me0nesmind1]

Yeah. I guess it could be spun that (lets face it) anyone under 40 now isn't going to retire.

I'm 31. Guarantee you I'll not only retire - but do so significantly early heh. Comes at the cost of not over spending and not getting new cars every 5 years, but I'll take it.

 

[ultimatebob]

You know, I was thinking about it, 401k is definitely one of the things that's going on the chopping block once the next recession comes and employees turnover. Hell, maybe even benefits in general. Companies are going more and more towards contract work where you get no benefits.

Yeah, I would expect 401k matches to be one of the first things to get cut during the next recession. If you're older than 40, though, you should have enough saved up to retire... eventually.

 

[Johnny Ringo]

Yeah, I would expect 401k matches to be one of the first things to get cut during the next recession.

I sure hope that does not happen, but I could see that as an easy thing for employers to cut, or reduce the matching percentages. Who would have thought 30 years ago that private pensions would disappear as quickly as they did.

My father grilled it into me, and my brother that we needed to start saving for retirement as soon as we graduated from college. It was hard, but it was worth it. Compounding is the key. The long term of slow and steady sure beats trying to play catch up when you are 45-50 years old.

I see far too many younger people who have the latest phone, smart watch, new car, eat out every meal, and then complain that they have student loans, and can't save for retirement. They don't even have kids, and mortgages yet!

It sneaks up on you...one day your 25...the next day you are in your 50's and broke, with no retirement savings.

Me...I just shake my head, and know that I will be sitting on a beach drinking a beer relaxing in my later years.

 

[snoopy7548]

That'll never happen

I sure hope that does not happen, but I could see that as an easy thing for employers to cut, or reduce the matching percentages. Who would have thought 30 years ago that private pensions would disappear as quickly as they did.

My father grilled it into me, and my brother that we needed to start saving for retirement as soon as we graduated from college. It was hard, but it was worth it. Compounding is the key. The long term of slow and steady sure beats trying to play catch up when you are 45-50 years old.

I see far too many younger people who have the latest phone, smart watch, new car, eat out every meal, and then complain that they have student loans, and can't save for retirement. They don't even have kids, and mortgages yet!

It sneaks up on you...one day your 25...the next day you are in your 50's and broke, with no retirement savings.

Me...I just shake my head, and know that I will be sitting on a beach drinking a beer relaxing in my later years.

Same here. I was always told to live below my means and save as much as I can. You can't rely on anyone but yourself.

 

[jpiniero]

Yeah, I would expect 401k matches to be one of the first things to get cut during the next recession. If you're older than 40, though, you should have enough saved up to retire... eventually.

I'm not even talking about the match - I'm talking about the 401k in and of itself. It costs the company money to run the plan. It's probably not that much but it's not zero either, and when you factor in participation is probally not much in no match plans it would be an easy call.

 

[Mai72]

Brokerage Fees and Investment Commissions Explained - NerdWallet

Investment fees reduce your returns. Here are the fees you need to know – brokerage fees, stock trading fees and mutual fund costs — and how to limit them.

www.nerdwallet.com

Be careful of the fees that you typically pay with a 401k. Nerd Wallet did a study and found out that the average worker will pay over $500k in fees in their working lifetime. I don't know about you, but that is $500k that I'd like in my bank account. And, the fees increae as you get older. So, examine your portfolio. You should know and study EVERYTHING about your 401k. Your fees. Where the money is going. Etc. Don't be blind like so many Americans. Study the markets. Diversify. You should have multiple streams of passive income coming in by the time you're 50 IMO.

 

[Mai72]

I sure hope that does not happen, but I could see that as an easy thing for employers to cut, or reduce the matching percentages. Who would have thought 30 years ago that private pensions would disappear as quickly as they did.

My father grilled it into me, and my brother that we needed to start saving for retirement as soon as we graduated from college. It was hard, but it was worth it. Compounding is the key. The long term of slow and steady sure beats trying to play catch up when you are 45-50 years old.

I see far too many younger people who have the latest phone, smart watch, new car, eat out every meal, and then complain that they have student loans, and can't save for retirement. They don't even have kids, and mortgages yet!

It sneaks up on you...one day your 25...the next day you are in your 50's and broke, with no retirement savings.

Me...I just shake my head, and know that I will be sitting on a beach drinking a beer relaxing in my later years.

Or you'll pass away. I don't take things for granted my friend. Never should you. Of course you should save, invest, etc. But, never EVER live in the future. The present is all that we have. My mom passed away at 65. The so called start of the "golden years." Taught ne a ton about life. It's short. Our time on this planet is short, and to never take it for granted. I've posted about the FIRE movement before. Financial Independence Retire Early. If you can, try to retire at 40. Maybe even 35 while you're still young. Just my opinio, but it's been shaped by seeing so many people pass away at or near retirement age.

 

[ultimatebob]

I'm not even talking about the match - I'm talking about the 401k in and of itself. It costs the company money to run the plan. It's probably not that much but it's not zero either, and when you factor in participation is probally not much in no match plans it would be an easy call.

Nah, I don't see it. Management needs a retirement plan as well, and the the fees on the funds go down as the total amount invested goes up.

 

[LikeLinus]

Ours is vested immediately and they 100% match up to 6%.

 

[Scarpozzi]

Ours is vested immediately and they 100% match up to 6%.

The plan I'm on, I was vested immediately and get 10% of my paycheck invested monthly. I had an opportunity 17 years ago to go with a traditional pension, but didn't expect to be in the same organization this long...it required 5 years vesting. I'm hopeful I can stick it out a few more years. I turn 60 in 21 years....so it should snowball some more by then (if I don't give up and retire at 50)... =P