Employer matching 20% of your 401K contribution?
By admin ~ October 5th, 2009. Filed under: General.
Employer matching 20% of your 401K contribution?
For some reason, my uncle's company is increasing company matching to 20% of 1st 99% of employees' eligible 401K contribution. Of course employees' contribution has to be withing the limit set by IRS. I think that's what the company means by “1st 99% of eligible 401K contribution”?
Uncle is 63 years old. 3 years away from his full retirement age. As long as he stays out of stock, will increasing his contribution be ok? He is in private sector. Let me know your advices please. Thanks.
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October 5th, 2009 at 4:34 pm
And I would say he should not ignore stocks. They are on sale right now. But it could be all of three years before we see great returns or sooner. Realize we up over 30% since March. If compared to "safe" bonds paying less than 4% that is 7 to 8 years of the gains you get in bonds.
The rule of thumb these days says he should have 47% in stocks if you deduct his age from 110.
Good Luck
October 5th, 2009 at 4:34 pm