Sorry that I have been MIA, I have been working 12 hour days and when I get home blogging is the last thing on my mind. Sometimes I really hate being salary, at least when I was hourly I never worked more than 40 hours per week.
Anyway, I have been working toward my goal of paying off my Master Card and I am glad to say I am $170 away from that goal. I also have $450 in my savings.
I have also been reading up on finance, and in the near future I plan to open a Roth IRA. But here is my dilemma.
The good news is - my new company has a 401k. The match up to 1% of my salary 100%. From 2% - 5% they will match $0.50 on the dollar. I will be eligible to join in 11 months.
The bad news is - there are no investment options. They take the money to purchase their own stock. I am told I can sell the stock whenever I want but that is a lot to go through.
The question is, should I sign up for the 401k?
I know free money is great, but only having the stock of one company in my portfolio seems dangerous to me.
Help.
Jingle Belle 2018 เต็มเรื่อง พากย์ไทยชนโรง
4 years ago
I can't give you an answer unless I know the name of the stock. Actually, no one can give you the answer either, without knowing the name of the stock.
ReplyDeleteThe short answer would be no.
ReplyDeleteA key to sound investing is diversification. Since your 401k will have only shares of a single company, the volatility will be insane. If I were in your shoes I'd do two things before reconsidering the 401k:
1. Invest in the Roth. Start with a broad mutual fund or ETF (I like Vanguard Total Stock Market - VTI)
2. Complain to HR that the 401k is not a very competitive benefit and you and your coworkers would like a better option. Ask around the office and see who else agrees.