So, I’ve now been working for Hyland Software for three months. That can mean only one thing: it’s time for benefits to kick in. Calling some of these things benefits is really a misnomer, because what they actually are, are giant risks. Now hey, I’m as risky as the next guy trying to earn a buck, but I like to learn a bit about my investments before I make them. The problem now becomes learning about these investments.
The 401k: Of course we were handed a pile of paperwork on different investment strategies. The problem is, it’s all from the vendor, and they’ve got nothing to lose if I invest alot in their plans. In fact, they’re probably the only ones with a gauranteed profit. There are certain things however that make the 401k very attractive. The more money I put into it, the less my taxable income. Neat. Up to a certain percentage, my employer will match part of my investment, also neat. However, I can’t imagine that investing in the same plan as millions of other Americans can possibly make a decent return. There are really only a few plans to choose from, and we are going through Principal Financial Group, which is no small player. Talk about over-valued!
In light of all this, I think I’ve formulated a plan for investing, but I’m lacking some severely needed information. Consider this blog to be an RFP to anyone who’s been through this kind of thing. My idea is to take advantage of the attractive parts by incorporating information about my current and possible tax bracket based on percentage invested, as well as investing the maximum amount that my company will match, but no more. (The same thing 3/4 of the 401k investors are probably saying to themselves anyway.) Beyond that, I hope to invest my money in things that are not quite as over-valued as a pre-packaged, conglomerate-offered 401k plan.
I place a high value on edited information. I need your help! If you’ve come across solid third-party sources, please let me know. Thanks :}