I have a 401 k and my job doesn't match it!?

Question

I have had the account for about 7 months. It seems like its growing slowly. I put 50 bucks towards it a month. Is there somewhere I can go with a 401k and have someone match it, without leaving my job

I have made under 20 bucks from investments

Answer 1

despite a lack of company matching contributions... perhaps you can maximize growth by picking funds within your 401k that are more aggressive.

you sound young, so aggressive is the way to go.

the hot market with high growth are non-US markets - if you have asian/european growth funds, plug a large percentage of your contributions into that.

of course diversification is key, so perhaps 75% stock/25% bonds would be a good mix.

Answer 2

It's too bad that your employer does not provide any kind of "match". In general, most employers do provide some level of matching contributions. I've seen company matches that are dollar-for-dollar up to 4%. This is truly a wonderful benefit, and unfortunately, a benefit that many people don't consider when they're searching for a job.

To specifically answer your question, a 401(k) is a retirement benefit for employees of a company, so it would not be possible for you to get that benefit, unless you actually changed employers.

At this point, your best strategy might be to:

(1) Increase your contribution rate over time, until you hit the maximum allowed; this can be done over a period of years. The sooner you can "max" out your contributions, the better financial shape you'll be in over the long-term. The current maximum annual contribution you can make to a 401(k) is $15,500.00 (for 2007).

(2). Be sure your asset or fund allocation is appropriate; if you have many years to go before retirement, you should be primarily allocated to equity funds, with healthy allocations to international equity and emerging markets equity funds (if available).

(3). Contact your HR department about your company's lack of a 401(k) "match". Make your concern known. If other co-workers share this same concern, encourage them to speak to your HR department too. See if your company might have something planned for the future. If you should change employers, try to join a company that offers a healthy match.

(4). If possible, consider funding an alternate vehicle for retirement savings, such an IRA or Roth IRA.

I hope this helps you!

Answer 3

No. You can only get it matched from your current employer with your current 401k. The reason you're not making a lot of gains either has to do with the fact that you have no idea how or where to invest within your 401k, or the fact that you're only putting 50 bucks a month towards retirement.

Answer 4

Not really. The only time I've ever seen a 401k match was from an employer. You would have to find a job where the employer does match 401k contributions. For example: my company will match up to 3% of our salaries in the 401k.

Why would some random other place match your contributions unless you worked for them? That would just be handing you free money.

Answer 5

Keep contributing to this 401K, even though your company does not match. You are saving money on taxes, and building a nice nest egg for the future.

I would also suggest opening up a ROTH IRA. Wonderful way to save for retirement.

Both vehicles will let you retire with a nice eggs nest!

Good Luck

Answer 6

Of course it grows slowly...it takes time for income to accumulate. This is a long term investment vehicle. You're earning about 9% on your income. Keep it going and come see me in about 20 years and tell me that it's growing slowly. Though, I would up my contributions to 100/mth at a minimum.

Answer 7

you could contribute more and pretend some of it is a match. I recently did this at work:

If you contribute $X more than you do every bi-weekly period and expect to earn 6% on your investments... you will have more than 1000X in 20 years.

So if you put in like $10 more every other week.. you could earn an extra $10,000+ in 20 years..

Answer 8

So you have 350 bucks, what do you expect it to be? I dont think there are any people out there giving away free money. If there please let me know.