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Thank You everyone for the advice and comments. The 25% match from my employer is for 10%-15% from my gross salary. For example: Total gross pay $1,000.00, subtract 10% for 401k, company contributes 25% of the 10% I contributed. I am trying to pay off the car loan at 11%. The mortgage is 4%. I would be debt free in 3 years. I thought about paying off the debt before I started contributing the 15% but the 25% match is so great I was curious if I should start it now instead.
if they will match up to a 15% contribution from you, then you want to be sure your contributing that 15% to take full advantage of their match. Otherwise, your leaving money on the table. Also, do whatever you can to ditch that car loan! 11% is killing you! I'd even look into refinancing it at a lower rate if possible (and the amount on the loan makes sense) if you cannot get rid of it quickly!
11-20-2017, 03:49 PM
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n/a posts
Quote:
Originally Posted by Checkered24
if they will match up to a 15% contribution from you, then you want to be sure your contributing that 15% to take full advantage of their match. Otherwise, your leaving money on the table. Also, do whatever you can to ditch that car loan! 11% is killing you! I'd even look into refinancing it at a lower rate if possible (and the amount on the loan makes sense) if you cannot get rid of it quickly!
This.
Keep the contribution. Refinance the car to a non-absurd rate.
Most places I've worked at will match half of the first 6% of your contributions. No more.
I disagree and think things are heading in the opposite direction. My last company strengthened the 401k program while I was there. Worst I have ever had was 75% matching up to 6%. Current company has very strong retirement benefits.
Most places I've worked at will match half of the first 6% of your contributions. No more.
I suspect it has to do with the type of company. We're a general contractor. Construction won't make you rich but everyone on salary makes a decent salary plus good benefits (separate from our union people in the field, who are also paid good wages but through a different system).
In addition to the equal match up to 5%, we also get company shares every year, which is typically another 7%.
You guys want to hear a bad match? Try 50% up to 4% of salary. In other words, 2%. Then there is a miniscule safe harbor based on age and years of service (2-5%).
I have been with my employer going on two years and have yet to receive a match or safe harbor. I will be eligible for both next year.
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