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Financial Planning / Foolish 401(k)s


Subject:  Re: 401K help! Date:  1/11/2013  4:16 PM
Author:  bmillz Number:  24998 of 26142

To clarify; my company will match 6% in company stock but my contribution can be allocated to any of the other investment offerings as long as it is at least 6%. The last couple of years I have been putting my contribution in ETF's and just taking the company match in company stock.

The clarification is helpful for giving advice.

Since the company gives you the match regardless of where you invest your contributions, you shouldn't let the fact that they are buying the stock influence where you place your contributions.

Pretend for a moment the company match doesn't exist. If that were the case, what investments would you purchase with your contributions. The stock purchase shouldn't factor in your decision. In essence, it's a free money bonus that your company is giving you.
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