3 ms·
A matching 401k is really a great asset to have when job hunting. It's a sure-fire way to quickly compound a large amount of money. It's "free money" as they sa
by EADGBE 8y ago
A matching 401k is really a great asset to have when job hunting. It's a sure-fire way to quickly compound a large amount of money. It's "free money" as they say, and always worth contributing to get the maximum match.
Also, 401k's often (don't have to be, but usually) are usually pretty moderate index funds. The risk associated with them isn't always like buying Tesla before he went and made his "$420" comment. They're a good start to investing when you don't know that much about it all.
- hellowway4567 8y agoAs in my other comment, I mis-read the contract details. They will contribute only 2% and I am able to myself contribute 2-15% (isn't this the same as just saving myself?). Also the country is Thailand, so there might be differences.
- EADGBE 8y ago> Isn't this is the same as just saving myself? Yes, it is. Though you'll more than likely see returns much higher than a standard (but safe) savings account will give you. You'll also get that 2% float on top of free money. 2% still isn't bad. Free is free, as I said. In my particular case it's only 5% (best case): 50% match up to the first 10%. So if I contribute 1% of my pay to it, I'll get a .5% match. If I contribute 10% to it, I'll get a 5% match. I can contribute more but I'll only ever get that 5%. In your case, this is good compared to my situation in that you don't have to contribute 4% to get that 2% match, you can contribute even just 2%. This is in the US FWTW. It's a pre-tax situation. I don't pay taxes on my contributions or my employers contributions; but I do when I withdraw them (earliest I can start withdrawing is age 59-1/2. The assumption is that when I start withdrawing, my tax rate will be lower than it is now so I'll still "come out ahead".