Employers cutting 401(k) match contributions.
Posted on | May 22, 2009 |
Here’s a story near and not so dear to my heart titled, How Much You Lose When Your Employer Cuts Your 401(k) Match
It hit close to home because a few weeks ago I received an email from my corporate masters informing me that 401(k) matching contributions were “on hold indefinitely” so as to provide the flexibility required to “navigate these unprecedented economic times.” This was a week after they announced that there would be a wage-freeze and bonuses “across the board” would be eliminated.
I’m not alone, it would seem.
The article provides some depressing figures on just how much less you have at retirement without an employer match. It seems a little like a WAG to me because there are A LOT of assumptions involved like average rate of return, whether the employee will stop contributing to his 401(k) altogether, etc.. but the article does outline 3 actions an employee faced with the elimination of his company’s match can take:
1. Save more.
2. Consider a Roth IRA.
3. Don’t cash out.
What would you do? (Read the details of each action here)
Me? I opted for #1. It wasn’t as hard a choice as I thought it would be, since the market had pretty much bottomed out by the time I had to take action. I like the idea of buying more stocks at what I’m sure will have been historic lows by the time I retire. So I jacked up my contribution rate to what it was with the employer match included. Still, I wish I had that match…
- Record Drop in Home Prices Not all it Seems?
- Get $25 Free When You Open an ING ShareBuilder Account!
- REVIEW - The Automatic Millionaire
- Are You on Track to Retire Comfortably?
- The IRA Two Step
- Choosing the Right Types of Investments pt 2
- How to Find Ratings and Information for Your 401(k) Plan
- And back to where I started from, kind of
Comments
One Response to “Employers cutting 401(k) match contributions.”
Leave a Reply
Popular Posts
Featured Links
Need Help With your Debt?
Incredible DealsRecent Posts
Categories
Archives
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
Sponsors
Scan2Contacts
Search
Get Updates
by Email
Recent Comments
Tags
401(k) 529 savings plan Auto Insurance bailout Banking Bankruptcy blogging Building Wealth college savings Cramer Credit Credit Cards Credit score Debt debt settlement Economy Employment foreclosure getting out of debt How To Income Insurance Investing Life Insurance money Mortgage Rates Mortgages news Opinion Rant Real Estate Recession Retirement Review Reviews Saving Saving Money Savings Scam spending Sponsored Stock Market Stocks Taxes TipsContact
Blogroll
Blog Catalog Visitors
Disclaimer
Unique visits since 2008:
March 3rd, 2010 @ 7:49 am
[...] workers, like myself, saw their company contributions to 401(k) plans cut or “temporarily” suspended. My response to that was to give my 401(k) some TLC, a move [...]