401K Options?
Just to tell you how ridiculous this company is sometimes, let me tell you the story of the 401K meeting. Last Thursday I was given a letter about an informational meeting on 401K to be held on the 29th (today). I figured "good! then I can get the info and run it past a few of my "financial advisers" (namely my Dad and Lamby). I make a very small income here and therefore have very little to invest. Since this is all fairly new territory and mutual funds/stocks/bonds is all greek to me, I thought I would need to assistance in making my decision.
So I go to the meeting this am and a handly guide is given, along with some handouts to explain it to those of us that need it in layman's terms etc. I am intersted, taking notes etc. thinking that I am heading home this weekend and can see my dad and Lamby and discuss my options. At the end of the meeting I am told that the enrollment deadline is April 1st...FRIDAY. If I don't enroll by Friday I have to wait until October. So I have two days to enroll and no time to get assistance from my trusted advisors on what I am enrolling with! Why was this informational meeting not 2 or three weeks ago??? Why was I not given the informational booklet and handouts ahead of time then? I could have at least read them for myself and had time to think about it!
Maybe this is devine intervention and God is telling me "Don't enroll C.C.! You won't be at this job long enough to reap any benefits of your investments!"
Who set this up this way? I think it's rude and obnoxious. At least give me some time to view my options and set up a portfolio that will benefit me and my current needs! This rush stuff makes me nervous, especially when you are talking money!
Comments? Advice? Arguments for/against?
posted by C.C. @ 12:27 PM
2 Comments:
I TOTALLY feel you w/ the angst re: the rush job. My biggest/most important question would be to ask if you can transfer the 401k to a different company/job, should you ever decide to be employed elsewhere. A lot of plans allow this, b/c they make money if you keep your money in the account. (does that make sense?)
We have an IRA thru work where we have a chunk taken from each paycheck & the $$ dude/company invests it. I signed up not exactly knowing what the deal is, but knowing that I needed to have some way to save for that inevitable retirement that I wouldn't have to think about. I'd try calling your Dad tonight & reading thru the stuff w/ him & see what he says (a lot of 401k stuff is very similar). Hope this all helps!
Definitely invest in it. You can always change your holdings later (like put them toward other stuff) - but to start out, for young people, you should probably pick a fairly aggressive fund...meaning one that grows more rapidly over time, but is risky in the short run.
Post a Comment
<< Home