STYLETHREAD -- LET'S TALK SHOP!

Members Login
Username 
 
Password 
    Remember Me  
stylethread site home page -> stylethread forum -> career & education -> Packets of New Hire Stuff - 401K advice???
Post Info TOPIC: Packets of New Hire Stuff - 401K advice???
ViViDogWear


Kate Spade

Status: Offline
Posts: 1332
Date:
Packets of New Hire Stuff - 401K advice???
Permalink Closed

Hi All!  So I start me new job next week and I am so excited/nervous because I really want to stick at this company for a while.  I've never been at a job longer than a year and a half since I've graduated college.  Not to say I don't like the places I've worked for - it's just always been something (went back to school, better offer, moved cities).  Also in my industry (apparel) there tends to be high turnovers.  So that's my update.


 


Now I need advice on the grown up stuff.  It never really mattered to me before.  But now I am looking into my 401K options with more interest, debating whether or not to opt for ALL the other "Stuff" I never cared for.  Do I opt for everything?  There's sooo much information!



  • health insurance - of course

  • dental - of course

  • 401K - of course - but how much? 

  • Paid Family Leave insurance -???

  • FSA - yes, but last time I put in way too much - how much should I put?

  • State Disability Insurance - do I have to do anything for this?

  • Unemployment insurance - same thing, do I have to do anything for this?

Okay to elaborate on the 401K thing.  They match up to 25% of my first 4% contributions.  This is less than I had before.  Should I put more % of my paycheck in?  Also - this place will pay weekly/hourly which is also different than I've ever had.  Should I be worried about putting too much or I'll be taxed (someone told me something like 6%)???  Any HR person or someone who knows about this kinda stuff can advise?


 


Thanks sooo much in advance if someone can give good advice!!!!


 


 



__________________
www.DiamondsandTulle.blogspot.com
nikkib222


BCBG

Status: Offline
Posts: 152
Date:
Permalink Closed

The advice that I've read from personal finance books is to contribute to your 401k up to the match, and then do a Roth IRA.  After you have maxed out your Roth IRA, you can contribute more to your 401K.  You would have to see if you are eligible for a Roth IRA though.


ETA: Congrats on the new job!



-- Edited by nikkib222 at 10:43, 2006-12-05

__________________
Farrah


Marc Jacobs

Status: Offline
Posts: 2353
Date:
Permalink Closed

nikkib222 wrote:


The advice that I've read from personal finance books is to contribute to your 401k up to the match, and then do a Roth IRA.  After you have maxed out your Roth IRA, you can contribute more to your 401K.  You would have to see if you are eligible for a Roth IRA though.


ETA: Congrats on the new job!




-- Edited by nikkib222 at 10:43, 2006-12-05



This is exactly what I would suggest and it is based on the advice of the Goddess Suze Orman.  I will give you a little background as to why though.  People will try to sway you to go all into the 401(k) because of the tax advantage now.  The issue is that you are most likely in a lower tax bracket now then you will be in when you retire.  That is why you want to have a very healthy chunk of your retirement savings in a Roth.  The money has already been taxed so you will not have any penalties when you withdraw upon retirement. 


If you are interested in a Roth I would suggest Fidelity.  I have both an IRA and a Roth with them and they are amazing.  Super customer service, low or no-fee IRAs and great fund choices.



__________________

"Whatever you are, be a good one." --Abraham Lincoln
Aurora


Marc Jacobs

Status: Offline
Posts: 2408
Date:
Permalink Closed

I agree go with the full 4%. 


I'm not sure what FSA stands for so I can't help with that.


The unemployment should be paid by your company and I'm not sure on the state disability but I would think it would be paid by your company.  If not it shouldn't be very high at all.


 


Farrah - Can you give some more info on Roth IRAs and such.  I am trying to decide on an IRA and am not sure where to start researching and stuff.  You can pm or start a new post if you want so we don't hijack this one.



__________________
My blog -> http://www.theblondediaries.com/

http://twitter.com/blondediaries
bex


Chanel

Status: Offline
Posts: 3194
Date:
Permalink Closed

Aurora wrote:

I'm not sure what FSA stands for so I can't help with that.




FSA is a savings account for medical bills.  I have a HSA (Health Savings Account) which allows me to roll the money over from year to year and keep it even after I leave my company.  FSA is the account that you deposit money to in order to pay medical bills but it doesn't roll over at the end of the year.


Vivi- i'm not sure what I would do about your FSA.  It depends on how much your insurance covers.  For example, mine is a high deductible with no co-pays and any preventitive care is 100% covered.  So I deposit $10 a week plus my company puts in $600 per year.  That fully covers my BC pills and I have extra in case I want to buy glasses or anything comes up that is unexpected.  I would talk to your HR department b/c ours was able to give us a lot of if/then scenarios that helped when making decisions on what to contribute.


hth!



__________________
Aurora


Marc Jacobs

Status: Offline
Posts: 2408
Date:
Permalink Closed

Thanks for clarifying Bex. 


Vivi - I would look at the health insurance options and then see what the minimum requirements for contributing to the FSA.  I know when I weighed all my options it wasn't really worth it to me to contribute since I would definetly not use everything I contributed due to insurance covering all my meds and me rarely getting sick and I think our minimum % or contribution was sorta higher than I'd want to do.



__________________
My blog -> http://www.theblondediaries.com/

http://twitter.com/blondediaries
jacL


Coach

Status: Offline
Posts: 1862
Date:
Permalink Closed

I just wanted to add something about the FSA.  You should see exactly what is covered and then add up your yearly expenses.  Mine covers all doctor copays as well as drug copays, glasses/contacts and eye exams, and most OTC medications.  These things really add up and the minimum required amount seems really high (mine is $360, I think), but I spent even more than that in my total health care costs--I had my requisite OB appointment as well as two extra ones, three drug prescriptions for the year, and buy OTC Claritin, Prilosec (for my BF, but it okay to use the FSA), and other meds such as Ibuprofen, Tums, etc.  It doesn't roll over though, so be conservative when calculating your costs. 

__________________
~Jaclyn
ViViDogWear


Kate Spade

Status: Offline
Posts: 1332
Date:
Permalink Closed

A little late, bnut better than never - THANKS to all that replied!  I started about a week after this orig post and with new job, holidays, and injuring myself, I haven't really focused on my finances and 401K stuff.  Thanks for all the advice!  :)

__________________
www.DiamondsandTulle.blogspot.com
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
stylethread site home page -> stylethread forum -> career & education -> Packets of New Hire Stuff - 401K advice???
Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse 		Powered by ActiveBoard