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Quite an interesting guide. 50% match on a 401(k) is great. Although as far as asset allocation goes if you’re <35 I’d do 100% into VTSAX or equivalent. You ca

Quite an interesting guide. 50% match on a 401(k) is great. Although as far as asset allocation goes if you’re <35 I’d do 100% into VTSAX or equivalent. You can gradually convert to 90(stock)/10(cash or bonds).

MrMorden 7y ago
50% match on the 401(k) is nothing special; a federal government employee who puts in 5% gets a 5% match (1% agency automatic, 3% 1:1 match, 1% 1:2 match). The great part is that there's no cap beyond that imposed by the IRS.
- lotsofpulp 7y ago
  Federal government only matches 4% of pay according to this document: https://www.tsp.gov/PDF/formspubs/tspbk08.pdf https://www.tsp.gov/PDF/formspubs/tspbk08.pdf Microsoft contributes 50% of one’s contributions to their 401k, whereas federal government contributes up to 4% of one’s pay to contributions. So if you contribute $19,000 at MSFT, you get an additional $9,500. If you contribute $19,000 at federal, and you earn $150k, you get an additional $6k, subject to 3 years vesting requirement.
  - MrMorden 7y ago
    As that document says, the maximum match is 4% and the automatic contribution is 1% for a total of 5%. 1:1 matching seems to be reasonably common, but only up to a single-digit percentage of pay.
    - lotsofpulp 7y ago
      Matching 3% to 5% of pay is common. Matching 50% of all contributions is not, and is far above the median, therefore I would consider a 50% match on contributions to be special. To get a similar 401k match in federal, you’d have to make almost $200k, whereas Microsoft is not restricting it by income.