401k question

If the company stops doing matching contributions to your account, is it still worth it to plug more money in?

Yes, yes, I know all about the pre-tax advantages. But watching the account shrink combined with not getting the company's contribution is making me rethink it.

Somebody hold my hand and say everything will be OK.

 

How old are you?

Generally speaking, you should continue contributing at the maximum allowed. Think of it as buying low.

Just make sure it's diversified sufficiently and you're not dumping your dollars in company stock.

 

A mild thread jack: My company matches 50 cents a dollar up to 6 percent. Is that good, average, below average?

 

That's generally about average--at least it was a year ago.

A year from now, that might be the best thing out there.

 

Yes. Compound interest is the 8th wonder of the world.

 

Unless you fall into that rare one-quarter of one percent of Americans, you can never save enough.

 

Or you could roll it over into an IRA on your own and contributing to your retirement fund that way

 

So basically they match up to 3 percent.

 

No, because you have to contribute 6% in order to get the 3%.

 

I worked one place that matched 1-1 up to 3 percent.

Another place was 50 cents a dollar up to 4 percent.

 

Unfortunately very, very, very few of us have the discipline to make those contributions with the same steady regularity as when the funds are taken from our pay before we ever see them.

 

My employer contributes 7.5 percent of your salary (up to $17,500) even if you don't contribute a dime. I max out.