Employer Contributions

Everyone needs to save for the day they hope not to work any more to make ends meet.  If you are comfortable with your job security and have good savings you could get to in a pinch, investing through your company’s retirement plan is worth considering.  Staying on a consistent investment plan through a down stock market can pay off quite nicely when markets recover.  If your company offers to match part of what you contribute to the plan, that’s even better!


So check your employer benefits and see what’s available to you.  Some companies don’t allow employees to contribute to a retirement plan until they’ve been with the company a while.  Some allow you to contribute, but won’t match anything.  Or if they do contribute into your account, it’s based on what you invest and you have to be in the plan for awhile (sometimes up to five years) before you can have the company’s share if you leave the company. 


If your employer offers a plan, it’s a great benefit for you which is greatly enhanced if they offer a contribution to your account.  It’s certainly worth exploring if you can supercharging your retirement savings!


2 Responses

  1. Linda – a great reminder that some of the most effective strategies are the simplest. Tax-subsidized retirement saving is a great deal, especially if there’s any kind of a company match. Even a match of just 25 cents for every dollar saved equals a guaranteed return of 25%!

    Is this a great country, or what?!

  2. Linda,

    I have always admired your calm and steady approach to financial planning and have enjoyed your books. As a fixed income provider for the fee only advisor community, I can attest to the safe haven you have been for your clients. It is clear that your approach of fiduciary far outweighs any impulse shopping in the market due to quick high returns that now in hind site have turned out to be a dissappointing and in some cases devastating to clients who go it alone. As I am still dedicated to building portfolios of individual bonds and CD’s as a way to have retirement wealth protection, it is still difficult to change navigations tactic in these unstable waters. Selecting the right bonds at the right prices with the applicable maturities is a challenge and advisors are learning more and more about getting the right combinations. An advisors, due diligence can find bonds that fit client parameters and tweak portfolios to see returns equal to or greater than those the stock market will provide in the next few years ahead.

    I am just giving my view again as I have been shouting from this podium for a while now and I see some traction. Thanks for your encouragement of my work in bonds for advisors and being a voice when it comes to safe and rational portfolios.

    Laura Digan

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