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View Full Version : My company has stopped matching 401k contributions



partyboy
21st April 09, 04:13 PM
So what kind of options am I looking at here? Is it worth it to keep pouring money into the 401k when I'm not receiving the match from the company? Should I think about putting the money somewhere else?

I'm kind of at a loss in this current situation so any help would be appreciated. I know I didn't really give much info but I can elaborate further on my situation if needed.

jubei33
21st April 09, 04:26 PM
Is the party over for partyboy?

Dark Helmet
21st April 09, 04:37 PM
Is the party over for partyboy?
Lol!

HappyOldGuy
21st April 09, 05:52 PM
Assuming you have a "recession safe" set of choices already defined for your 401k, and assuming you are making enough for the tax bennies to actually matter,I would think you should probably keep saving for retirement.

Dark Helmet
21st April 09, 06:20 PM
Are you asking to take your money out of your 401's? The recession is likely to end eventually so I would chose to keep it until your company can financially resume their commitments.

Also, did you watch that 60 minutes report on 401k's?

D Dempsey
21st April 09, 07:31 PM
Unless you can roll it over into an IRA without much of a hassle then you should probably leave it where it is.

partyboy
21st April 09, 07:50 PM
Is the party over for partyboy?

never, dammit!

jubei33
22nd April 09, 04:05 AM
never, dammit!
Phew! That's good, what with the high fructose lady lying to me I've had enough shake ups in my life. Keep on shining you crazy diamond :biggrin:

KhorneliusPraxx
22nd April 09, 08:58 AM
a) leave what you have where it is but stop funding it and start a seperate Roth IRA and fund it like Scrooge McDuck.

b) Start your seperate Roth IRA, as above, and go ahead and roll your 401K into it. You shouldn't have any penalties but you should have to pay your bullshit, I mean federal, taxes on it now if you do that.

Consult a local professional in Atlanta and ask his opinion on which is best for you.

HappyOldGuy
22nd April 09, 10:38 AM
Ignore everything that everybody other than me is saying in this thread. The only time a Roth IRA is a better option than a 401K is when your post retirement tax rate is higher than your current one as a working person. This is extremely uncommon.

jkdbuck76
22nd April 09, 10:54 AM
Just cash in what you have and spend it on hookers and blow.

partyboy
22nd April 09, 10:57 AM
Just cash in what you have and spend it on hookers and blow.

ah, always the voice of reason..

HappyOldGuy
22nd April 09, 11:04 AM
Okay, JKDBuck has something worthwhile to say on the topic also.

Phrost
22nd April 09, 11:53 AM
Pull everything out of your 401k and invest it in McDonalds; they're experts at fucking the poor over for profit. Given how there are a lot more poor people around at the moment, you can't lose.

Also, Remington, Browning, Winchester, H&K, Springfield, and Midway USA (not sure if they're publicly traded).

partyboy
22nd April 09, 12:19 PM
Pull everything out of your 401k and invest it in McDonalds; they're experts at fucking the poor over for profit. Given how there are a lot more poor people around at the moment, you can't lose.

Also, Remington, Browning, Winchester, H&K, Springfield, and Midway USA (not sure if they're publicly traded).

no Smith & Wesson?

HappyOldGuy
22nd April 09, 12:39 PM
Just for shits and giggles I went out to check how those companies are doing, and they are all private. With a little more digging it seems like Ruger is pretty much the only publicly traded gun company in the US.

They have done decently well since the election. :biggrin:

http://quote.morningstar.com/Quote/Quote.aspx?ticker=RGR

KhorneliusPraxx
22nd April 09, 03:26 PM
Ignore everything that everybody other than me is saying in this thread. The only time a Roth IRA is a better option than a 401K is when your post retirement tax rate is higher than your current one as a working person. This is extremely uncommon.
The last thing I want to worry about when I am retired is watching my retirement savings and interest getting federally raped...
I don't like paying it now...but at least my interest will be free and clear.

The only reason a 401K would be better than a Roth IRA is because of MATCHING FUNDS...which he said he no longer gets.

HappyOldGuy
22nd April 09, 03:28 PM
The last thing I want to worry about when I am retired is watching my retirement savings and interest getting federally raped...
I don't like paying it now...but at least my interest is free and clear.

The only reason a 401K would be better than a Roth IRA is because of MATCHING FUNDS...which he said he no longer gets.

This is math. Math does not care about your opinion.

Spade: The Real Snake
22nd April 09, 04:02 PM
So are we allowed to ask what the over/under percentage is for your current liquid assets are versus the plausibility you will lose your current job and need access to the unmatched monies you would be putting into your 401k and would raped trying to take out?

jkdbuck76
22nd April 09, 04:11 PM
What Snake is really asking is "how many hookers could you afford NOW as opposed to when you will be unemployed?"

Spade: The Real Snake
22nd April 09, 04:13 PM
Or how many hookers can you get after turning 50 and not get charged an early withdrawal penalty.

Zm0G!! PREMATuRLY ETAXULAtED!!~!

jkdbuck76
22nd April 09, 04:15 PM
He said "early withdrawal"!

KhorneliusPraxx
24th April 09, 07:59 AM
This is math. Math does not care about your opinion.
The very first post asked everyones opinion... :-P

I did follow up my post telling him to additionally seek the serves of a competent professional.

partyboy
24th April 09, 01:38 PM
so I got in touch with a professional but I won't be able to have a real sit-down with them for at least 3-4 weeks...

any reason to STOP putting money into my current 401k? I'm currently putting 10% each paycheck in..

Spade: The Real Snake
24th April 09, 01:42 PM
So it will be 2 more paychecks worth?

Not unless you need it or think you can find a better short-term investment.

KhorneliusPraxx
24th April 09, 02:05 PM
Just stay the course until you decide what you are going to do

new2bjj
28th April 09, 10:59 AM
No one has asked what your choices to invest are, so what are they? If it is Vanguard or some other index fund with low fees, just keep dollar cost averaging in. If it is some "managed fund" where they take almost 2% for their "advice" while they run your money into the ground, maybe you put it in cash. It is hard for them to beat the market for any length of time, and if they had a system that was able to beat the market, they'd close their doors and just bet their own money.

If you have a SPartan fund or some other good index choices, do that. Also, beware of "advice" from "professionals"- most of them did not predict this collapse for their clients, and since they couldn't, who fucking needs them?

Also, look at bonds with in the 401k. That might be the next big thing.

And finally, do you have 12 months expenses in cash savings or at least short term CD's? If you are really middle class you can live for 18 months without tapping credit if you lose work, otherwise, even if you vote Republican, your are still a member of the blue collar/working class/proleteriat. Sorry, but that's the way it goes.

HappyOldGuy
28th April 09, 11:11 AM
And finally, do you have 12 months expenses in cash savings or at least short term CD's? If you are really middle class you can live for 18 months without tapping credit if you lose work, otherwise, even if you vote Republican, your are still a member of the blue collar/working class/proleteriat. Sorry, but that's the way it goes.

That's an interesting definition of middle class. I don't think I qualify (I come close) and I'm in better shape than most of my friends, many of whom are making 6 figures each in double income households.

partyboy
28th April 09, 11:21 AM
And finally, do you have 12 months expenses in cash savings or at least short term CD's? If you are really middle class you can live for 18 months without tapping credit if you lose work, otherwise, even if you vote Republican, your are still a member of the blue collar/working class/proleteriat. Sorry, but that's the way it goes.


bah, I'm not going to be there anytime soon with my current mortgage. luckily I have family to fall back on if anything happens to me/my job.

I have about 2 mo.'s worth of cash just idling in the bank right now because I haven't decided what I want to do with it. also, since I own a 4 year old chrysler, I'm thinking now's the time to get a new car before they finally go tits up.

new2bjj
28th April 09, 11:55 AM
Party boy- save your money. There will be an aftermarket for Chryler autos for several years. The whole idea is to have 12 months worth of cash sitting idly.

If you don't have a plan for accidents, what are you going to do? Seriously, go read the Black Swan by Nicholas Taleb. I mean really, why do the call them accidents? You don't plan on losing your job, divorce, car, home, etc. You can be like the ant in Aesops fables while all your friends are the grasshoppers like the people HOG mentioned.

new2bjj
28th April 09, 11:58 AM
That's an interesting definition of middle class. I don't think I qualify (I come close) and I'm in better shape than most of my friends, many of whom are making 6 figures each in double income households.

That was the old definition in the 60's and 70's when I grew up. Once Reagan got into office and helped everyone get addicted to cheap credit, it went away. Then it turned into how much can you borrow? Sorry, like you said math is math- if you don't own it outright, it's not yours, and old that "other peoples money" bullshit is just bullshit, when you run of suckers.