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So I have been contributing to a Voluntary Pension Plan that "supplements" my pension when it is time to collect it.
I have noticed that the interest rate that the VPP contribution earns has dropped considerably over the past 6 months. It is not a huge adder to the pension, currently $107 a month (10 years to accumulate) The current interest rate that it is earning is 2.4% down from 3.4% in that 6 months. I am wondering if I should take the $45 a week and put into my Roth 401k instead of adding to my pension. With the current atmosphere of pensions (they have already frozen salary pensions) that this money may be more beneficial add to my 401k . My time frame to still be with the company is only about 3 more years. The company does match the 401k contributions at 3.5% . I am to assume if the company froze our pension (contract year in 2 years) that the Voluntary Pension addition would be halted.
Thoughts?
Same as above. Get the 401k match and go with the ROTH. But use equities and not bonds if you have at least 10 years to retirement. Don't sell when we hit another bear market as we will.
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