In my first post, I shared that I just started with a new company, making 35K more (base salary only) a year. With my sign-on bonus, I am paying off our 2017 Toyota Tundra, which only has 45,000 miles on it, and we owe $10,541. Waiting for that money to be desposited any day now. That monthly payment will free up some cash, to the tune of $625. Just in time for student loan payments to start back up - interest only right now is $620 a month (that's for another post, on another day).
When I took this job, I swore I would use the extra money to pay down debt and to save. Being my usual self, I got scared and only selected 5% contribution to my 401K. Even though the company matches up to 6%. Dumb. I don't know what it is - I just like more cash in my checking account, I guess?
So, yesterday, I got real brave and changed my contribution to 10%. Mind you, I've received two paychecks so far, and neither of them had benefits or pretax items deducted yet. I won't know what my real paycheck is until March 4. I think (don't quote me) that means I'll have $654 a paycheck now going into my retirement account. After taxes, my husband and I both put $200 a paycheck into our credit union savings. I'll have to delve into savings more another time.
Since I did such a good thing, I called my husband up and told him he needs to change his contriibution to 10% asap. He told me it is already at 10%. LOL.
Finally, when I logged into my accounts this morning, I saw that my old bank (job), made a deposit into my 401K. So, I am up about another 6K. Now... I need to make some decisions about what to do with it -- do I roll it into my new 401k? Can you have two 401Ks? Or do I leave it as is? Or do I put it into an IRA. So many questions!
February 23rd, 2022 at 07:15 pm 1645643705
February 23rd, 2022 at 08:18 pm 1645647513
February 24th, 2022 at 12:24 am 1645662285
I would leave it in place until you have a chance to evaluate both plans. What funds are you invested in
Are those the best options? Which funds have the best options? All 401k plans are not equal and you need time to make a good decision.
You also have the option of converting your old 401k to an IRA, and that might involve fees. However, you would be able to invest in whatever you want to, or to choose an investment advisor to do that for you.
February 24th, 2022 at 01:39 am 1645666791
February 25th, 2022 at 08:28 pm 1645820920