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| ckritcoad |
 Posted: Sat Aug 02, 2008 7:23 am Post subject: What to do with 19k? |
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I have worked for my current organization for 3 years. We have been an ESOP but are about to be bought by another company that will do away with the ESOP. I will become 100% vested if this occurs. Essentially I will have a check for 19k that if I don't invest or do something with it within 6 months I will be taxed. There will be a 401k available, but everyone I have talked to says to stay away from it. Any suggestions?
Thanks in advance! |
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| deprived |
| Posted: Sun Aug 03, 2008 2:14 am Post subject: |
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Investing Sr. Associate
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| Give it to me>>> LOL. I can always use the extra cash. |
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| ckritcoad |
| Posted: Thu Aug 07, 2008 11:23 am Post subject: |
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| deprived wrote: | | Give it to me>>> LOL. I can always use the extra cash. |
Not exactly what I was thinking 
Apparently I can roll the 19k into the 401k, and there is a for sure 3% put in by the company every month, including the possibility of an additional 6%. Essentially I the company could give me 9% without me investing a single dollar. Sounds too good  |
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| zerolikedis |
| Posted: Thu Aug 07, 2008 4:05 pm Post subject: |
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Investing Manager
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| open a rollover ira with vangaurd and buy some lowcost funds with them then open the 401k with company and invest to get the match. free money |
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| eamoses |
| Posted: Thu Aug 07, 2008 7:21 pm Post subject: |
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Investing Manager
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| yeah, go with vanguard, really low expenses- i've got a few of their funds for my IRA and they are doing really well... 401k's are only good for their match, so i would only put in what they will cover... are they also giving you a pension plan or anything? WPO gives us a pretty good double deal, 401k and an automatic investment per years with company- vested within five years, and i believe grows up to 40 years or so. |
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| yamhillman |
| Posted: Fri Aug 08, 2008 7:10 am Post subject: |
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| i work for the same company,i dont think i will put any $ in the 401. Since they are putting in up to 9% without us putting any in at all.Its a tough deal,the esop was really good.It averaged 10k a year without us contributing at all |
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| ckritcoad |
| Posted: Fri Aug 08, 2008 7:18 am Post subject: |
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| yamhillman wrote: | | i work for the same company,i dont think i will put any $ in the 401. Since they are putting in up to 9% without us putting any in at all.Its a tough deal,the esop was really good.It averaged 10k a year without us contributing at all |
The problem in your case is 6% of that is based on performance goals, so there is no way you will get 9% total |
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| eamoses |
| Posted: Fri Aug 08, 2008 7:46 am Post subject: |
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Investing Manager
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i would still put in enough for the match in the 401k, it never hurts to invest more- i mean at least 3% or so, who wants to turn down a free match of money.  |
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| yamhillman |
| Posted: Fri Aug 08, 2008 10:50 am Post subject: |
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| eamoses wrote: | | i would still put in enough for the match in the 401k, it never hurts to invest more- i mean at least 3% or so, who wants to turn down a free match of money. |
It doesnt matter,because there is no 3% match.We get the 3% regardless.You see they were trying to come up with something comparable to the esop,because it was free we got shares just for being employed here.So they are giving us 3% of our saleries in the new 401k to try and make up for the esop.With incentives it is possible that we could get 9% without any contribution.If that makes sense,so i get a minimum of 3% regardless |
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| eamoses |
| Posted: Fri Aug 08, 2008 12:17 pm Post subject: |
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Investing Manager
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| oh, well that's pretty good... i'm still fuzzy on how the 9% comes in, but if that is how it works that's great. i'd still set up a vanguard though- probably the growth index, it does pretty well. |
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| yamhillman |
| Posted: Fri Aug 08, 2008 12:25 pm Post subject: |
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| eamoses wrote: | | oh, well that's pretty good... i'm still fuzzy on how the 9% comes in, but if that is how it works that's great. i'd still set up a vanguard though- probably the growth index, it does pretty well. |
the extra 6% is all based on the profits of the company. eg if the company does well then its a win win for the employees,,in theory.but your advice about vanguard souds great |
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| deprived |
| Posted: Sun Aug 10, 2008 2:59 am Post subject: |
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Investing Sr. Associate
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| Take the matching contribution- it is a raise with out asking for one. I would suggest to roll into to a Roth 401k, of course you must pay the taxes prior to that to transfering it. You can manage your own account. |
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| prs1065 |
| Posted: Mon Aug 11, 2008 6:00 am Post subject: |
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| I worked for lifetouch and they have an esop program this would not be the one yall are talking about? |
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| yamhillman |
| Posted: Mon Aug 11, 2008 6:32 am Post subject: |
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| no.its not lifetouch.but i am really going to miss the esop.I have only been here 3 years,but guys that have been here 10 years have well over 100k in it and its all free. |
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| prs1065 |
| Posted: Mon Aug 11, 2008 10:19 am Post subject: |
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