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Subject:  Re: 401K? or On My Own? Date:  10/17/1998  1:17 PM
Author:  cvkiekhafer Number:  6076 of 88505

<I currently started a new job that offers a 401K Plan. The company allows us to contribute 16% of our salary and they match 70% of 6% of what I contribute. So The max I can contribute is $7,000 and they match about $300. The company has a annual rate of return at about 11%. Is it a good idea for me to contribute to this 401K or an I better off investing for my self?

Somehow I think you've misunderstood your plan. At least I certainly hope so, because $300 per year just isn't a great match. I'll bet if you check, you'll see that your employer will match 70 cents on the dollar up to 6% of your pay if you contribute that much. In other words, if you put in 6% the company will match it with 4.2%. If that's the case, then you definitely want to contribute at least that 6% before you turn to anything else.>

I would agree. With my calculations I would estimate your company would contirbute about $1800.

depending your your investiment vehicles that doesn't look to bad to me.

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