My own 401k example (theory real, numbers not) ;-)
I can invest up to a certain percentage of my salary in my company's 401k program, there are two limits to this, one is percentage (set by the company in our case max is 13%) the other is $ value (set by the govt I think $13 - 15K/year)
my company also matches to a certain point (5% of salary) and as an additional perk will invest a minimum of 2% of my salary whether I make a contribution or not.
So, my math:
every paycheck I contribute 1/26th (26 paychecks a year) or 5% of my salary, lets make it $100.00
the company kicks in an additional $100.00 per pay period for the matching funds and another $40 (2%)(I think that's the right number...its late in the day) because of their infinite nice-ness (they could be watching).
so every other week I essentially have $240.00 to invest in my 401k.
All the money is taken out of my check before taxes and is invested in a mix of stocks bonds and funds that I chose when i enrolled in the program.
If everything goes well, at age 59 you come out with a load of cash.
then of course there's Enron...
HTH
(anybody else should please feel free to fill in other details...)
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