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URL:  http://boards.fool.com/the-question-is-does-it-make-sense-to-have-5-29602703.aspx

Subject:  Re: 401k matching Date:  10/13/2011  5:54 PM
Author:  0x6a74 Number:  69659 of 75793

The question is does it make sense to have 5% deducted from my pay each month until I hit the max $3000 for the year and then drop my deduction for the rest of the year so that my overall outlay is the same for the year. In effect I would be front loading the contributions and receipt of the match into the first half of each year. vs. spreading it out over the whole year.

Pros? Cons?



you'll hopefully get better answers ,but FWIW --

i think it's a lifestyle/heartburn thing.

i never got a match, but i front-loaded my contributions..

meant less money for most of the year, forcing me to live a BIT more frugally, and more money at the end, so i felt i could save and be generous at Christmas

but i was older and in a job where lay-offs were always a possibility so frugality and savings were important (and i didn't really have the self-discipline for either)

when i was younger and living pay-check to pay-check, but more secure in my job, i might have opted to spread it out (but back then the 401(k) didn't exist).


o... if your 401(k) investment options are good, there might be a slight advantage to putting the money to work sooner /my 401(k) always had pretty bad options
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