How does this plan compare to the other banks?
25 replies (most recent on top)
Since i work in tech and make a ton of money, i’m usually maxed out by April
The move to end of year match is pure garbage, no doubt. But putting a lot of weight into that single data point doesn’t hold water. From the point at which it was initiated you lost the potential earnings and compound interest on that one 6% lump for that first year but really now you’re front loaded for the next year. And you can still DCA using your paycheck deductions. Money is fungible, it’s up to you how you look at it. Besides all that, based on posts I’ve seen here 6% of salary seems to land between $5k and $10k. A pittance when compared to your entire portfolio.
Charlie talked about this publicly and made it clear that it was a cost saving measure. Candor does exist, rarely.
The match being held until year end is ridiculous. I moved companies and new is 5% vs 6%, but it is contributed to with every paycheck. We also got a 2% additional profit share contribution at the beginning of the year (if you've been there a full year) based on company performance the prior year.
WF just gets stingier and stingier...
All you need to know about WF's 401k cam be summed up in their recent class-action settlement for self-dealing. They limited investment options to high-fee choices that "just so happened" to be run by WF. They will fu-k their employees any way they can
Considering that workers change jobs every other year now, a pension is the LAST thing you want. You'd never even qualify to get retirement benefits, plus if a bankruptcy judge decides that you don't really deserve your pension, it goes "poof" when the company goes under. I'll keep my private accounts, thanks.
why doesn't the us empire require companies to provide real pension not 401k privatized nonsense?! gooo vile us capitalism!
Pay $45 and use Blooom to pick funds and get out of the high fee ones
Its garbage compared to many MANY other organization's offerings.
Plus, you better go check how much you are paying Empower per thousand invested. The Large Cap Value or Large Cap growth - can't remember which - is charging in excess of FIVE dollars per thousand invested per year. That's WAY too much if you compare what the Federal TSP charges for their funds and what Vanguard group charges for IRAs.
LEAVE WELLS FARGO or DON'T TAKE A JOB WITH THEM. GARBAGE 401k
Post ID: @dcd+1hSnprz4
The flip side to this suggestion is that you are not dollar cost averaging in to the market.
The same negative holds true with WFC’s singular end of year match: everyone is vulnerable to whatever the price of company stock is on that one day out the year.
That’s only true If the company has a true up provision in their 401k plan
If putting money in the account sooner is better than later, then the same applies to matching funds. You can also 'front load' your contributions any time, regardless of what the match is and when it comes. You control the contribution rate. Crank it to 50% of your pay on January 1 and you're good to go. My guess is, this is why people are downvoting.
My old company matched per paycheck and allowed a true up so you didn’t have to evenly spread out the contributions over the course of the year.
Post ID: @lqz+1hSnprz4
WFC has to keep nickel and dimming their employees and customers in order to pay for their $18 Billion stock buyback plan. And then, ironically, they are jamming part of the buyback stock back in to their employee’s 401Ks. Isn’t that special?
Let’s not forget that the consistently conniving and always self-serving Wells Fargo automatically invests your 401(k) match and optional profit sharing in company stock. Yes - you can sell it, but they are counting on their employees being too busy and too distracted to do so. And that is exactly what happens.
Additionally, they do very little to assist their employees with advice as to how to properly invest and diversify their 401K savings. We are a financial services company.
Why, you ask? Because there is nothing in it for them. They will happily assist you on your brokerage account/IRA account because they can collect their commission or managed money fees. Try asking them how you should diversify your 401K based on your long-term goals? Crickets.
Wells Fargo does nothing if there is not some kind of benefit in it for them.
Havent seen or heard of another company this size (and even smaller) doing the end of year match, all others are monthly or per pay period. 6% match is average, most other companies have better investment options.
People hated this response last time but I’ll post it again anyway. As long as you stay for the match, you’re better off with once a year matches. Why? You can front load your 401k contribution onto the first 4 months and take advantage of the extra compounding. Over many years this becomes advantageous financially. You can’t do that with spread matches
Also, with spread matches you are only forgoing the match up to that point in the year. Plenty of websites cover this in more detail
I’ve worked at both GS and MS and they offer a far better match.
Plan was to sell off business lines with an effective date prior to December 15th, so they don't have to match. It's a bit of a peeve, I still feel like they owe me the money since the sale came 45 days before the match date.
New employer (financial services firm) offers 4% and matches per paycheck which I think is better than 6% that you might never receive and if you do it's just once per year.
I left and my new bank is 5% vs. 6% at WF but my match is paid with every paycheck. Health and benefits are $150 less per month at my new bank so overall I'm happier with the benefits mix.
Paying the match annually is barbaric in an age of no pensions.
More generous 401K terms are intended as a carrot to make people stay with WF. If someone else doesn't measure up you might not leave. WF doesn't want us to stay thus the changes that were made.
As a fan of index investing, I'm cool with the options and the fees, but the recent change on matching is bu-----t. It's a blatantly obvious attempt to pinch pennies from people they are laying off en masse.
No top tier employer I am aware of does the "end of year match" thing.
I find it offensive my employer hopes I quit or am laid off before December 15 so they don't have to pay me my match funds.
Pathetic. This says every thing you need to know about the folks who run this place.
I’m not sure, what do the other banks offer?
The 6% match, assuming employee puts in 6%, is decent, however, that it's only paid once a year is terrible. Should you retire, or leave, it is not pro-rated. nvestment choices are so so.