Yeah that’s a good point too. I was telling my wife it’s worth $X per year if you stay five years and $0 if not. The other offer is a 3% match that takes five years to fully vest, but partially vests each year.
God it’s such bullshit when 401k matches vest over many years.
Also probably confuses a lot of people when they say 20% vests each year, which means 0.6% match if you leave after one year, etc.
I had a job many years ago where it was a 1% match that vested over 4 years lol. When I quit after 18 months the HR wanted to make sure I understood that I was giving up hundreds of dollars.
My company’s an ESOP and the older fully vested people are always shocked that younger employees will leave for non-ESOP companies as if they give a shit about money they can’t touch for 30+ years.
My company has a “vesting schedule” but I’m not sure they understand how it works. My guess is it’s a top heavy plan, so I’m almost fully vested after 2 years.
My former very large private employer has an ESOP plan. Among other things it’s a way for family members to convert the privately held stock into cash as the plan essentially buys from the family.
People that stay the whole time and retire middle management (which has stock bonus on top of the normal ESOP) can retire very comfortably in their mid to late fifties.
Sadly I was mostly in a joint venture and just had a standard 401k. By the time I became a full fledged corporate employee, They were not innovating in my field, and I got a big step up to go into the startup world.
It’s been a good life choice in terms of happy wife/happy life and other things, but strictly financially if I had stayed I’d have at least double for retirement by now. None of my startup lottery tickets amounted to anything.
C’est la vie.
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Sure, and I’m one of the lucky duckies who worked here when it first distributed shares so I have ~$260k fully vested but since the shares get distributed based on earnings most newer employees get something like $1,500 worth of shares that are 0% vested until they’ve been here for a year.
For whatever its worth, I think employer retirement benefits should factor in almost zero with respect to comparing employers in private sector jobs, early career. I think you want to try to figure out which place has the best potential for promotion up a few levels within the first five years so you can 2-3x your salary. Or the best resume builder to leave for another job up a level within a few years.
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Yeah, that makes sense. It’s very likely she jumps in 6-18 months anyway. Somewhere in that time frame she can get a big raise, and others have told her she’ll get it way faster and perhaps bigger if she jumps from one company to another. If the pension were really good, it might have changed the calculus, but it seems like something she can worry about down the line.
Not only are salary raises way more important than pensions, the chance any pension plan survives the next generation is very very poor.
And any more, if there is any kind of sharing in the form of stock/options it only adds up to significant money once you get a few rungs up the corporate ladder.
Anyone know what triggered today’s declines?
Here’s a theory:
You know how I know the market is bullshit? People think Tesla is a fucking growth stock.
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My portfolio had an owie.
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AI is an airball?
Stonks drilling to levels not seen since 3 weeks ago
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Wish I had more dry powder to buy the dip…
But I’m going to the WSOP Circuit event next weekend. Hopefully that’ll go well and I’ll be able to buy more once I get back!
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Stonks were stonking in anticipation of a Trump presidency.
Now that Kamala has closed the gap in the fake polls the stock market is hitting lows never seen before in stonks history.
Once Trump regains the lead in the polls the stock market will reach new highs.
/Trump logic