Comments on: The Forecast for Today – Partly Cloudy http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/ Our Journey to a Debt-Free Life Sat, 21 Nov 2009 16:43:45 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: raj http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-499430 raj Fri, 01 Aug 2008 23:58:05 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-499430 check your PAL score. http://www.decisioncare.org/general/know-your-personalized-astro-alert-pal-score/ check your PAL score.

http://www.decisioncare.org/general/know-your-personalized-astro-alert-pal-score/

]]> By: Oh My…It’s March, We Made It! : Blogging Away Debt http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-25336 Oh My…It’s March, We Made It! : Blogging Away Debt Sat, 03 Mar 2007 03:29:39 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-25336 [...] I couldn’t do that. The earliest I could add him to our plan was March. I had thought about getting some short term health insurance for him because he is 5 years old and [...] [...] I couldn’t do that. The earliest I could add him to our plan was March. I had thought about getting some short term health insurance for him because he is 5 years old and [...]

]]> By: Matt http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6616 Matt Thu, 18 Jan 2007 15:17:12 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6616 I hope you're feeling better soon! being sick sucks I hope you’re feeling better soon! being sick sucks

]]> By: T http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6612 T Thu, 18 Jan 2007 12:38:02 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6612 Thank you everyone for commenting and giving me more to think about. I've made a decision (well, I have to - the deadline is today to decide!) and I will be blogging about it shortly. Thank you everyone for commenting and giving me more to think about. I’ve made a decision (well, I have to – the deadline is today to decide!) and I will be blogging about it shortly.

]]> By: Jen http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6567 Jen Wed, 17 Jan 2007 21:54:09 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6567 EMF: You raise a good point about vesting that Tricia should consider. Also, the vesting schemes you listed aren't the only ones. With my current employer I was fully vested in the company match after 1 year of employment. However, another way to look at it is: Do you really want to turn down a match just because you might not be vested in it? If you don't contribute, and you end up working for them long enough to have been vested, then you lost the opportunity to have that extra money. If you end up leaving the company before you're vested, then you haven't really lost anything since it was a gimme anyway. I made that mistake with an employer - I didn't like that I had to wait 3 years to be vested. Guess what happened? I ended up working for them for 3 years, but I didn't contribute to the 401(k) because I wasn't sure I'd be there for three years. EMF: You raise a good point about vesting that Tricia should consider. Also, the vesting schemes you listed aren’t the only ones. With my current employer I was fully vested in the company match after 1 year of employment.

However, another way to look at it is: Do you really want to turn down a match just because you might not be vested in it? If you don’t contribute, and you end up working for them long enough to have been vested, then you lost the opportunity to have that extra money. If you end up leaving the company before you’re vested, then you haven’t really lost anything since it was a gimme anyway. I made that mistake with an employer – I didn’t like that I had to wait 3 years to be vested. Guess what happened? I ended up working for them for 3 years, but I didn’t contribute to the 401(k) because I wasn’t sure I’d be there for three years.

]]> By: EMF http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6560 EMF Wed, 17 Jan 2007 18:24:16 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6560 One factor you should consider is vesting. Typically, the employer contribution is not vested until you've worked with the company for a few years. IIRC correctly, the company can choose one of two schemes either (1) 100% vested if you've worked there 5 years or (2) gradual vesting 20% per year starting with 3 years service leading to 100% vesting with 7 years service. Check the Summary Plan Description to find out which one. Also check to see if you're vested earlier if involuntarily separated before that. If you have a reasonable expectation of having the employer match vested, it's kind of hard to walk away from free money. A 6% contribution would not be a 6% reduction in take home pay, but I imagine you'll be looking at the numbers Vs your situation closely. One factor you should consider is vesting. Typically, the employer contribution is not vested until you’ve worked with the company for a few years.

IIRC correctly, the company can choose one of two schemes
either (1) 100% vested if you’ve worked there 5 years
or (2) gradual vesting 20% per year starting with 3 years service leading to 100% vesting with 7 years service.
Check the Summary Plan Description to find out which one. Also check to see if you’re vested earlier if involuntarily separated before that.

If you have a reasonable expectation of having the employer match vested, it’s kind of hard to walk away from free money. A 6% contribution would not be a 6% reduction in take home pay, but I imagine you’ll be looking at the numbers Vs your situation closely.

]]> By: Jen http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6558 Jen Wed, 17 Jan 2007 17:39:09 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6558 Ditto on taking the match!!! It's free money! If you're still worried about cash flow, then contribute only 6%. If your monthly contribution is $100, then that means you get an extra $50... for nothing! Plus, your taxable income is then reduced $100 each month, which means you don't get taxed on $1200 for the year. Ditto on taking the match!!! It’s free money! If you’re still worried about cash flow, then contribute only 6%. If your monthly contribution is $100, then that means you get an extra $50… for nothing! Plus, your taxable income is then reduced $100 each month, which means you don’t get taxed on $1200 for the year.

]]> By: MOMM http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6557 MOMM Wed, 17 Jan 2007 17:11:30 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6557 I say definitely take the match! We don't get a match and thus stopped contributing to use that money toward debt repayment. We are going to start up again in a few months - after funding our Roth IRA's. We have a lot to learn about saving and investing as our debt (and our lifestyle) caused us to not save that much and pick poor investment strategies. So yes, take the match. :) I say definitely take the match!

We don’t get a match and thus stopped contributing to use that money toward debt repayment. We are going to start up again in a few months – after funding our Roth IRA’s. We have a lot to learn about saving and investing as our debt (and our lifestyle) caused us to not save that much and pick poor investment strategies.

So yes, take the match. :)

]]> By: NCN http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/comment-page-1/#comment-6549 NCN Wed, 17 Jan 2007 15:58:03 +0000 http://www.bloggingawaydebt.com/2007/01/the-forecast-for-today-partly-cloudy/#comment-6549 Take the match! When will you ever get an automatic 50% gain on your contributions? Do it, even if slows down your debt repayment. For every dollar you contribute, you get 50 cents. That's a great, great, great deal... NCN Take the match! When will you ever get an automatic 50% gain on your contributions? Do it, even if slows down your debt repayment. For every dollar you contribute, you get 50 cents. That’s a great, great, great deal…
NCN

]]>