Is a 6% 401k match more lucrative than the 4% match and pension at Truist? Asking for a friend……
13 replies (most recent on top)
FFS, why are you shouting?
There, there...now just calm down, and go back to sitting in the corner counting your pennies.
@ea what do you expect from a layoff site? The correct answer is always it depends, the next advice should be to contact a qualified financial professional and not listen to anonymous people on a random website that has nothing to do with financial advice.
Nice of you to raise pertinent points, in helping OP discern, re: their investment dilemma.
However, pleast take note that there is room for both constructive information, as well as sarcasm (even if it's deemed to be "obnoxious" by those who may be overly sensitive/serious or lacking in a sense of humor).
Lighten up, Buttercup.
Life's a balance of comedy and tragedy, and if you can't add in a bit of snark and verve to all of the seriousness, then what type of life is that?
Sad to see a person with a legit question getting obnoxious and sarcastic responses, so I’ll try to be constructive.
IWantMyMTVBack has some great points, though you’ll also want to consider the time value of money, which is kind of inverse between the 401k match (get the money today so it grows over time) vs. the pension (get a fixed amount of $ on a recurring basis starting at some point in the future, so with less in today’s dollars).
Generally speaking the younger you are the better off you’ll be with a better 401k match vs. an additional year of pension vesting. Just to make it simple, if you’re 30 years old that means you can take your 401k match amount and watch it grow for the next ~35 years until you retire, whereas if you’re going to get a similar notional amount (annually) through the pension, you’ll want to think about what the present value of that payment stream is worth in today’s dollars (likely a very small amount of the actual notional amount you’ll be getting in the future.
Alternatively if you’re closer to retirement age, your 401k match will have less time to grow, however the present value of your pension annuity stream is much higher given there’s not as much time for discounting (aka measuring a future cash flow in today’s dollars) so the present value is greater than for the younger person.
Hope this helps!
TABBY IS DAT U?!?!?!
This is not a simple yes or no question.
A pension pays out until you and your partner die. How long do you think you will last? Do you take care of yourself? Do you have a family history of illness?
Are you married? If you have a spouse whose ancestors lived into their 90's a pension will surely pay out more over time than that 2% into your 401k.
But a pension is not guaranteed. It can become insolvent, or reduced.
We used to get both, the pension and a 6% match. I used to be very proud of that. It was dissapointing to see them reduce the 401k because there is nothing we can do to make up for that since we are capped on what we can contribute.
My personal opinion is the Pension is a good way to diversify your retirement. It's not going to sustain you but it will be part of the mix that does. Plus when you get really old it's nice not to have to "manage" it. Just collect your monthly check.
I DO MAFFS!
I WERK AT A BANK!!!
HELP ME WIF MY MAFFS!!
DONT PUT ANYTHING IN WRITING. ALWAYS UTILIZE VPN TO MASK IP ADDRESS
The OP is an example of SunTruist finest. This OP is destined to be one of the 500 or so EVP’s that are here. Never seen so many EVP’s at a bank in my life. Probably be one of the gang of 23 or 25 or ever how many are now on the “ Operating Council”. Is that still a thing? Is Bill still pretending they have a say on how the bank, excuse me, Investment Bank is being run. That nonsense is as big a joke as Bill himself.
Yes
Would take the 6% match. Better benefit IMHO
Find a calculator brainiac
What about the id--t who stole 195k from her cements then faked her own death?
She had an even better plan than 6% match.
You’re thinking small
Think BIG!