Wednesday, May 19, 2010

The mystery of the 401K.

I just got off work and finished one of the slowest days in the store's history. (well maybe not  the slowest) When I came home, I discovered a letter from Merrill Lynch investment. At fist I thought I was being data mined by all those websites which knew I was looking at annual reports, but it turns out that I was actually vested into a 401K. I never really wanted a 401K, but I will take free money when I am given it. It looks like  it  is a  profit sharing 401K which stipulates that if I do not invest anything then by default I will be given money anyways. But, if I do contribute then the amount that I would recieve would  be a 40% contribution.

While I do not agree with the investment pricipals behind a 401K, I do understand that I would eccentially be recieving "free" money. I think at 5 years of dedicated service they actually vest a 100% of the 13% paycheck contributions, so if I put 70, they would put 70, but I highly doubt I will stay 5 years. I feel that there is some sort of hidden agenda behind the contribution, but this year might be my best year as far as earnings go.

To be continued....