As you interview for jobs, here are few pertinent questions to ask a prospective employer about your benefits:
- Do you offer a retirement savings plan like a 401(k)?
- When am I eligible to participate?
- What investment options are available?
- Can I borrow against my 401(k)?
- Do you match any or all of my contributions and when am I entitled to keep them?
Starbucks, for example, allows employees who are age 18 or older to participate in the company’s 401(k) after 90 days of service. Depending on how much the person saves and how long he or she has been with the company, Starbucks will match some or all of the employee’s contribution. In some instances, the company’s contribution may be even higher than what the employee is contributing. Wherever you work, make the most of your employee benefits such as a retirement savings plan.
Retirement savings plans differ as to when the employee is vested. Depending upon your plan, you’ll need to be employed for a certain time frame before you’re entitled to keep your employer’s contributions to your account. It might be a few years or even a few months. If you leave before you’re vested, you keep your own contributions but lose your employer’s.
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