Just learned that my employer is about to start a matching program on my company's 401k. First thing I did: suspend my contributions to the program.
Why continue to invest in the 401k when I can hold off for a few months and then get free money on my contribution?
Don't worry, I still have every intention of maxing out my contributions to my 401k, just as I do every year.
401k matching is awesome.
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2 comments:
Do all of your employees know this or are you an insider?
You were contributing but you've stopped until the matching starts? That's not helping you in any way that I can see, unless your future contributions will include the amount you are now holding back. That might not work out very well. Most companies only match the first 1-5 percent, which is far less than any employee should be socking away, even with a long lead time to retirement. So, yes, company matches are great -- but not contributing until you get some matching money is cutting your nose off to spite your face, as the old saying goes. Good luck, whatever you decide to do.
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