Count the Company Match?

by | Jun. 07, 2010

Finances

Dear Dave,

You recommend investing 15 percent of your income into Roth IRAs and other pre-tax retirement plans. Should you count your employer's company match as part of that percentage?

Ben

Dear Ben,

You can, but I'd prefer that you didn't. Employers and employment situations can change at the drop of a hat. I'd rather see you put in 15 percent. That way, you don't have to rely on someone else to complete your retirement savings plan.

It's not your employer's responsibility - or any one else's - to make sure you have money to live on in your old age. Stick 15 percent in there yourself, Ben. Then, if your employer does match workplace contributions, it'll be that much sweeter!

-Dave

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