A community of 30,000 US Transcriptionist serving Medical Transcription Industry

401K, for me no way, but I might change my mind - advice

Posted: Dec 04, 2009

I could have participated in my company's 401K for 3 years now, but when I went to sign the paperwork and read through the fine print there were things stated in there like I could lose everything that I put into it if the investiment company went bankrupt and that this "IS" an investment and not a promise to pay..... So I backed off. I am very iffy on having one. The only benefit is that my company will put 25% in it, but if there is a chance I could lose it is it worth it? I was just thinking about sticking my money in savings and just letting it grow. My company of course will not match that, but I have a good interest rate and when the amount grows I could make some good interest. What do you think?

401K - Chelle

[ In Reply To ..]
Have you looked into and IRA. I don't know much about them, but my sister-in-law swears by them.

But remember that there is little earned on these....sm - IRA maybe.....

[ In Reply To ..]
right now. I did finally take mine out of the money mkt and put it directly into the banking system with my bank, BUT the interest rate is very, very low. At least I don't see any red marks now when I get a statement at the end of the month, but I won't get rich quick, either! I see little hope for any gain unless you are in the "elite" these days. That spread the wealth thing - remember it???

I put mine in bank also and the interest rate is low - but like you at least

[ In Reply To ..]
not going down. I miss those Clinton days. Gosh we were raking in the moola.

You have a right to be concerned and ask anyone who - had a 401K what just happened

[ In Reply To ..]
With the economy like it has been some have lost their shirt with 401Ks. My daughter lost money at her job. It is invested in the stock market and there you go. Years ago I had lot of money in stock market. As long as Clinton was president big $$$$ and then when another president came in the money started blowing away. I had enough, took the money out, put in the bank and safe. It might not have earned as much money as when in the Clinton years, for sure but then again it did not lose money again. Money now that I have now in bank is only earning 1 point something but still not losing.

Recent studies indicate many employer-sponsored 401Ks - MissIndigo

[ In Reply To ..]
have been extremely bad investments over many years, not just during this current recession, and there's a lot of discussion about moving away from them altogether.

That said, a 25% employer contribution is definitely something to be taken advantage of, as is the fact that this is all pre-tax money you're investing. If you don't withdraw it before allowed retirement age, you don't pay taxes on it at all.

I forget right now what I'm putting away without paying taxes on it, but I think it's 18%. Over time that's a lot of money. I only wish I had 25% added on top of that...

Regarding actually keeping it safe and hopefully growing nicely on average, what should be done is to consult a competent investment counselor--not that I had the sense to do that. In any ccase, though, I would first see whether you are free to invest this money whereever you want or whether it has to go into a specific plan chosen by the employer. If the latter, what is its long-term performance adjusted for inflation? That's critical because reportedly many of these funds are making big money for the companies that administer them but fail to husband them carefully for the people who had expected to retire on them.

In any case, though, saving for retirement is critical, and I wouldn't just walk away from this opportunity. Risks from investment are scary, but long-term retirement building can't be done in a bank account because of severe losses from inflationary periods (are we headed for one now?).

People who had 401K and close to retirement - What happened

[ In Reply To ..]
have lost their shirt off their back, some have been forced to try and return to working even though retired. I feel sorry for those. I am glad for anyone who can save and make the big bucks but I got tired of losing my shirt and decided against any more stock marketing. My daughter who has a 401K was not delighted at all to lose any money this year and I refuse to play that game anymore.

Agree but not saving is a guaranteed losing strategy. - MissIndigo

[ In Reply To ..]
I feel for them too, but people nearing retirement are supposed to have changed their savings strategy to reflect the fact that they can't afford to lose. Its like a personal bank account. Nobody should be taking care of it but you.

I unfortunately am pretty far away from retirement and do this because we don't have big bucks. Neither of us has a pension and savings are critical if we aren't going to be living from SS check to SS check in whatever little place we'd be forced to move to in future (I comfort myself that mobile homes are wonderfully comfortable, though).

In any case, first get that free 25% on your own untaxed income dollars, then take responsibility for monitoring, guarding, and building your savings.

True, up to the person to take care of their savings but - tell that to the thousands who lost their money

[ In Reply To ..]
Like I said, learned a big lesson when I had stock (as is 401K, same thing as investments done in stocks) and I lost way too much money to suit me. I was not retirement age when my money went thousands of dollars at a time. I am retirement age now although not retired and it has nothing to do with how much money I have or do not have. Like I said, have at it if that is others cup of tea, myself I like to play my cards really close and am not looking to make the big bucks now with stocks, 401K, etc. just want safe. I feel for the people who lost everything they had when this bottom fell out. How were they to know? They didnâ��t and thus money lost, older people broke, back to work at an age when they should be enjoying retirement if that is what they wanted.

Agree, but stocks are not the only investment by far. - MissIndigo

[ In Reply To ..]
The issue is taking advantage of the terrifically advantageous offerings of untaxed earnings and 25% donation by employer.

No matter the age, passing all that extra money up--every single dollar of it earned by your labor, including the employer contribution (hey, this is NOT charity!) is extremely improvident.

401 K losses - LK

[ In Reply To ..]
You don't have to invest 401 K money in stocks. That's a choice you make. You can also invest it in much more conservative investments like money market funds. Anytime you invest in the stock market, you open yourself up for big losses (also potentially for big gains). 401 K does not equal stock market, though. People who had too much of their 401 K in the stock market when it tanked obviously took a big hit, but it was their choice to be in stocks.

A 401K is not an actual investment - LK

[ In Reply To ..]
Think of it like a basket in which you place investments that you choose from the offerings in the 401 K plan. The 401 K itself is a means of sheltering your money from current taxes (the money goes in pre-tax,which can be a huge advantage in terms of growth of your money). If your company is matching 25%, that is free money to you. YOU select the investments within the 401 K, which can be stocks, bonds, money market, fixed savings, in whatever combination and whatever risk level you are comfortable with. All 401 K plans offer a variety of investment options. My biggest advice to you - educate yourself before you invest in anything. There's plenty of info out there on what a 401 K is and how you can use it to your advantage. I've used 401 K's for years and have done very well with them.

Similar Messages:

Jan 18, 2010

I'm new and was just wondering if MQ is still making a contribution to 401K and if so, can anybody tell me how it works? Thanks. ...

Mar 14, 2010

I have recently quit my position with Spheris and want to know who to contact regarding getting our 401K or how to get a hold of this? Any help would be GREATLY appreciated! ...

Nov 16, 2010

Does any one know how long it takes to get your 401K after giving notice to MQ. I'm seriously contemplating getting out of here. Also, does any one know how Cobra is calculated. Thanks. ...

Dec 29, 2010

Does anyone remember when was the last time the Q contributed matching funds to the 401K? Thanks for your response. ...

Jan 02, 2011

I have a couple thousand dollars in it that I'd hate to lose. I quit MQ and now am an IC, so I can't transfer it to another employer. So how does that work? ...

May 01, 2011

I don't know if they have just changed things but I rolled over a large amount from my 401K into an individual IRA just this past January. The advisor at ML said that most 401K's did not allow this but that ours did. I had been told in the past that I could get my money "any time I wanted to." I suppose it is possible that so many people have taken money out that they changed the rules but I would check with ML to be absolutely sure. ...

Mar 12, 2012

If there is anyone who understands the 401K match, can they give us a sample, ie, if you gross 1000 per pay period what the 25% of the first 4% would be and how much you could expect. The way I do it, I would get 80 cents, so hoping I'm wrong. ...

Mar 12, 2012

It is nice, I suppose, for those able to participate in the 401K, and those who would gain from the benefits. There are paychecks where I have earned $8 and 9 an hour (I'm a tier 3) because of being jerked around on multiple unfamiliar accounts and crappy dictators. I recently applied for food stamps (or go hungry), and had to borrow against a small line of credit to make my rent. All this "improvement" doesn't help me pay for just the basic high cost of living we all are struggl ...

Jul 16, 2012

Before I start slamming this company yet again for not keeping their promises, did anyone check their 401K and see a contribution? I know they were supposed to start matching after July 1st and the paycheck on Friday the 13th was the first one. I expected when I logged into my 401k this morning to see a contribution and surprise surprise nothing. ...

Sep 03, 2012

Anyone know how long before you are fully vested in the 401K? I'm getting close to 2 years, but don't know how much longer I can stand this place. ...

Oct 22, 2012

Who does Nuance have their 401K through? TIA ...

Mar 21, 2014

Do you have to move it somewhere else? I don't add to it any longer but still have around 10K in it. ...

Dec 04, 2009

I got the annual shareholder report that came with a form that looks like they want some kind of vote? Are we supposed to mail this back or what? First of all, I didn't know I was a "shareholder" of anything. Unless it's true that they pay their 401K with MQ stocks? I knew you could buy them (though I wouldn't on my own)....but I also heard a while back that MQ pays their 401K with stocks. Anyone know anything about this voting/proxy form and/or if it ...

Mar 23, 2010

I'm wondering if I should just stop contributing at all. I remember they used to, low as it was, at least it was something--like IF they made money, MAYBE they would and then a very low percentage, like 25 cents to the dollar? Prob a mute point even asking.....but just wondering if they nixed that. My sister is complaining because her company used to do a 100% match and now she only gets 75%. Boo hoo! At least she has a match.....I'm sure ours is now so ...

Jul 14, 2010

either as a rollover to another retirement plan or a payout? I am curious about how long this process takes, and whether there is much red tape. I know I can call the 401K custodian and hear what SHOULD happen, but I am more interested in hearing from someone who's already done it if there were any holdups. Thank you in advance for any replies, and have a great day! ...

Apr 25, 2011

Does anyone know when a new hire is available to sign up for a 401K and where can I do this? ...

Mar 13, 2012

Did we get an email about them matching now? I didn't get one and I've seen some posts on here about it. If so, can someone tell me the date they got the email? Thanks ...

Mar 15, 2012

It's true I'm only part-time but I figure my match will be about $30/year. How many chapsticks will that buy? ...

Jan 24, 2013

Hey All - Greetings-! Say, any of you who do 401K contributions at Nuance, supposedly the company matches 50% up to the first 4%. Do they consistently do this every time, or is it contingent on anything (like quarterly earnings, etc.)? Does their contribution show "every check" or is it deposited every month or quarter or something like that? I could not get a direct answer on this when I emailed the company benefits administrator, so I'm skeptical. Without the ...

Apr 30, 2011

Out of curiosity I went to the Merrill Lynch site. I was looking around on my personal page; I had NO idea how much I had in there, and it showed me (I was surprised as I thought it was much less) But what do I know about it...never really kept up on it..... However, I always thought MQ didn't contribute a CENT anymore? I clicked on "Learn more about your company's match" and it said it matches 50% of the first 5% you contribute....WTH??? Can anyone confirm or refute ...

Jan 20, 2012

Just an inquiry. Is this better than getting 401K on your own? Or do you need details to give a solid answer? If they don't match it, I can't really see the good in it. Just asking. I am not savvy in financial matters. ...

Nov 30, 2012

Just got e-mail from our wonderful HR person that no 401K was deducted in our most recent paycheck. As soon as Nuance bought us, our program stopped :(( Welcome to Nuance...ughhh....I jumped from Webmedx to Transcend to Accentus and it seems I cannot escape :( ...

Nov 19, 2013

Here is an article that talks about 401K. Mmodal's 401K plan stinks. "The most common 401(k) employer match is now dollar-for-dollar for the first 6% of income that an employee defers." Mmodal only matches 25% up to 4% which equals 1% in a lump sum which is even stingier than matching it each pay period to allow the participants to take advantage of compounding. The worst thing - We don't even know if Mmodal is going to match this year. In years past they sent out a letter res ...

Jan 03, 2014

Probity employee swallowed up by Nuance. Got a letter in the mail from Fidelity Investments confirming my enrollment in the Nuance 401K. Only problem, I didn't request nor authorize the enrollment and these jerks gave Fidelity all my personal information including my social security number. Who knows who has my information now? With identity theft rampant, these idiots hand it out to just anybody. I am spitting nails and considering a consultation with a lawyer.&nbs ...

Mar 12, 2012

Does anyone know off the top of their head if the 401K benefits are available to part-time folks? ...

Jul 15, 2014

No need to name your company, a yes or no will do. Just wondering if it's even too much to hope for as I can only work PT but since I'm not married and don't plan to be ever, it's important for me. THanks in Advance! ...

Feb 03, 2014

Seriously, I honestly do not know what is going on in the western region. It wouldn't be so bad if there was just no work in my BOB and I could ask for more back up accounts from other BOB but the whole western region is out of work! It was the same way over the weekend, isn't there usually work on the weekends? I'm a single mom and can't afford to take it off with no pay - I REALLY NEED THIS INCOME so I'm stuck taking it out of my PTO but I won't ...

Oct 18, 2014

x ...

Mar 19, 2010

Are they kidding? Who is going to be sending ANYTHING to QA and take a chance of having their pay cut? Especially if it's the beginning of the work week! Yes, the clients will be getting blanks and I know they will be complaining. The Q keeps sending us e-mails telling us to cut down on QA submissions. Are they kidding? No amount of "tips" will help if the dictator mumbles, sneezes, is ESL, etc. Don't they think we know all the "tricks" already? Besides that, we can't ...

Jul 27, 2010

Okay, I just started my first job with an MTSO, and now I'm looking at an empty queue. This is the same running-out-of-work scenario that has been following me for the past 6 years, everywhere I go. Three on-site jobs have gone down the tubes because the clinics/hospitals were "streamlining" with VR, and making their remaining employees more "efficient." Every time this happens, I promise myself: Will retrain, will find a new line of work. This is a dying field. Every time, somethin ...