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!


Some Financial Basics

If you’ve done your review of your 2007 spending, here are some items that you should see in the year’s finances.  (All of these assume you’re still in the work force.)


         You saved at least 10% of what you made.

         You have at least 10% of your pre-tax, pre-deductions annual earnings in savings. 

         You’ve funded retirement accounts.

         You didn’t spend more than you make, so you pay your credit cards off each month.


Give yourself a grade on each of these.  In the next posting we’ll look at how you can prepare for next year.