Skip to main content
No. of Recommendations: 0

2) MSRP (Management Savings Retirement Plan)


This sounds interesting. I would jump at the chance at a program like this if my company offered it (even if it was all company stock, which I believe (in my case) is an excellent investment).

Wait, though, this is about your program. I would need more information than what you have provided to determine whether or not it's a good deal. I would ask the following:

- Is the MSRP just in company stock? If so evaluate the investment objectively. I differ with the conventional wisdom in this area. If your companies stock is a good investment, there is nothing wrong with taking a large position.
- It's not clear here whether you can invest in both or just one. If you can invest in both, then definitely fund the 401K at a minimum.
- Is the MSRP investment pretax dollars? What is the company pretax limit for both programs? There is a $10K pretax 401K limit. Can you exceed the IRS 401K limit with the MSRP program.
- When you leave the company, can you roll the MSRP over to an IRA? (you can do this with your 401K of course).

It's pretty hard to beat a matched, tax deferred investment. Even if you have to forfeit some of it, it is still better than nothing. Take advantage of the MSRP program if all the details make sense.

rustedSoul
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.