Today, we become eligible for the 401k match. We passed sharts milestone which we all know was just another one of his ways to sc--w us and our retirement by reducing compounding on money we are owed. Well, we did it! We are now eligible. Pay up Shart!
18 replies (most recent on top)
What doesn't the US corporation give its' employees a real pension program instead of employees funding their own retirement with their own money? The match is miniscule and a typical American bait and switch.
They save money from those who quit before the match despite having been in the position most of the year. They save money in not having to pay dividends on those early matches that no longer exist. Perhaps they also save money on fees from the 401k processor.
I estimated about $435 lost from lack of compounding for employees making 70k annually. Obviously the more you make the more of an impact you would see, not to mention WF performance overall at the time dividends are granted.
But seriously, Is tech affected?
Anyone know how much we actually lose by Schart changing the matching date to the end of the year versus the previous way it was done?
Yep. Chuckles will have to pay up on 12/31.
Please note that that will not “pay up” until 12/31/2021.
I confirmed the date today.
Hmmmmmmmm.... I thought that if you got laid off and took the salary continuation plan instead of the lump sum, you still qualified as an employee.
If you assume median WF contribution of $3000 and maybe 15000 people forfeit their match due to quitting or being laid off, it saves $45 million per year within a pretty big range of variables. It could be more if the higher salary ranges have more people quitting.
Assuming maybe 150,000 employees who contributed to their account now lose out on the annualized, compounding balance growth over say 20 years, that’s around $6ish billion in missed account balance growth across all employees.
So, over twenty years WF saves itself about $900 million, while collectively screwing employees out of $6 billion, so yeah.
@fqj, they are such cheap azzes. BofA matched with every pay period and you saw the matching in every pay check.
Always been curious how much they’ll save by deferring match to end of year (with strategy being pay less employees the match because they left or were laid off) and whether that save is commensurate with the financial repercussions we face by losing 25-75% of the calendar year of compounding time in the market and the impact that has on our retirement success by this move.
Sell that company stock immediately and stay diversified.
@qxc+1ejfb5w8 This isn’t Wachovia brother
Now let’s go get those bonuses brothers! Two months out, Stick it to Shart!
Is tech affected?
@yzr+1ejfb5w8 Free money to be had in HSA health and wellness dollars too to the tune of $800/year and very simple to earn
A very cozy retirement can be had folks, and it's not rocket surgery. Max out HSA, 401k, and IRA, every year, and you'll be good to go almost regardless of your income. First year I hit the IRS limit with my 401k I was making $16/hr. Buckle down and invest in your own future. No one else is going to do it for you.
Woohoo on the match. Free money is always a good thing.
@qxc+1ejfb5w8 Scrooge
Best to wait until you see that it's actually been deposited in your account.