Comments on: Should I participate in my employer’s matching program? http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/ Helping you invest and prosper Thu, 18 Mar 2010 13:33:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Chigu http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-175351 Chigu Tue, 23 Dec 2008 21:37:31 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-175351 I just came across this article/blog while I was filling out the forms for the RRSP match. Here are some details on the plan. They match 100% of the contributions up to 4% of base salary. With the portfolio I have selected the average MER is 0.97%. Now the question is, should I contribute the maximum match amount of 4% or should I contribute more than that? Is the .97% MER too high? I just came across this article/blog while I was filling out the forms for the RRSP match. Here are some details on the plan. They match 100% of the contributions up to 4% of base salary. With the portfolio I have selected the average MER is 0.97%. Now the question is, should I contribute the maximum match amount of 4% or should I contribute more than that? Is the .97% MER too high?

]]> By: Saturday weigh-in and linkstuff - April Fool’s Edition http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-125766 Saturday weigh-in and linkstuff - April Fool’s Edition Sat, 05 Apr 2008 13:09:14 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-125766 [...] was interviewed this week over at My Two Dollars - check it out! I also did a guest post at the Canadian Capitalist recently where I talked about the benefits of getting an employer match in your group [...] [...] was interviewed this week over at My Two Dollars – check it out! I also did a guest post at the Canadian Capitalist recently where I talked about the benefits of getting an employer match in your group [...]

]]> By: dell11 http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122141 dell11 Wed, 19 Mar 2008 00:08:40 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122141 Big Cajun Man: What is Sun Life's low(er) cost funds? Big Cajun Man:

What is Sun Life’s low(er) cost funds?

]]> By: Four Pillars http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122129 Four Pillars Tue, 18 Mar 2008 21:41:02 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122129 MJ - Ahhh...good point. The other scenario I just thought of is when the employee can't contribute anywhere else. I think in the US a 401k has to be with the employer - u can't just open one up anywhere although I think they do have other options. MJ – Ahhh…good point.

The other scenario I just thought of is when the employee can’t contribute anywhere else. I think in the US a 401k has to be with the employer – u can’t just open one up anywhere although I think they do have other options.

]]> By: Michael James http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122106 Michael James Tue, 18 Mar 2008 20:44:55 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122106 Four Pillars: My former employers matched only 50% of my contributions up to 6% of my salary (i.e., my 6% was matched with 3%). If I had contributed only 3% of my salary, my employer would have added only 1.5%. I think this is fairly common (the 100% match is common as well). Four Pillars:

My former employers matched only 50% of my contributions up to 6% of my salary (i.e., my 6% was matched with 3%). If I had contributed only 3% of my salary, my employer would have added only 1.5%. I think this is fairly common (the 100% match is common as well).

]]> By: Four Pillars http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122101 Four Pillars Tue, 18 Mar 2008 20:38:14 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122101 Michael - I addressed that scenario in the post. In fact my original spreadsheet had a contribution of $15k by the employee and $3k match by the employer but then it occurred to me that if the employer investing plan had really high fees, why would the employee contribute anything beyond a matching amount, other than for convenience? Mike Michael – I addressed that scenario in the post. In fact my original spreadsheet had a contribution of $15k by the employee and $3k match by the employer but then it occurred to me that if the employer investing plan had really high fees, why would the employee contribute anything beyond a matching amount, other than for convenience?

Mike

]]> By: Michael James http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122077 Michael James Tue, 18 Mar 2008 19:52:45 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122077 I tried modifying the spreadsheet assuming that the company match was only half of the employee contribution. In this case the crossover happens after 29 years, which is getting more into the plausible range. While it seems likely that almost all plausible scenarios will have the company plan outperforming investing on your own, it is possible that a company will offer a plan so bad that an employee planning to stay with the employer for a long time will be better off avoiding the company plan. I tried modifying the spreadsheet assuming that the company match was only half of the employee contribution. In this case the crossover happens after 29 years, which is getting more into the plausible range. While it seems likely that almost all plausible scenarios will have the company plan outperforming investing on your own, it is possible that a company will offer a plan so bad that an employee planning to stay with the employer for a long time will be better off avoiding the company plan.

]]> By: telly http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122057 telly Tue, 18 Mar 2008 14:56:08 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122057 LOL...but seriously, would you? :) LOL…but seriously, would you? :)

]]> By: Big Cajun Man http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122054 Big Cajun Man Tue, 18 Mar 2008 13:57:02 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122054 I am not planning on working for 46 years, but I suspect that I may end up doing that anyhow :( . I am part of a matching system for up to 6% of my salary (50% kick in) and I simply buy GIC's with the 50% kick in for now, and low(er) cost Index Funds (SUN Life's idea of low MER is not as low as I think it should be). If the company wants to give me free money, who am I to argue? I am not planning on working for 46 years, but I suspect that I may end up doing that anyhow :( .

I am part of a matching system for up to 6% of my salary (50% kick in) and I simply buy GIC’s with the 50% kick in for now, and low(er) cost Index Funds (SUN Life’s idea of low MER is not as low as I think it should be).

If the company wants to give me free money, who am I to argue?

]]> By: Four Pillars http://www.canadiancapitalist.com/should-i-participate-in-my-employers-matching-program/#comment-122053 Four Pillars Tue, 18 Mar 2008 13:42:06 +0000 http://www.canadiancapitalist.com/2008/03/17/should-i-participate-in-my-employers-matching-program#comment-122053 No problem Telly - would you like me to fill out the form and mail it in for you as well?? :) Mike No problem Telly – would you like me to fill out the form and mail it in for you as well?? :)

Mike

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