Quote:
Originally Posted by unccrombie
i've been contributing since 23 (now 26) at 8-10% a year with a company flat rate of 10%. it's been a great scenario especially since our funds have averaged 8.5% RoR over that time, but our company is gradually dropping down to a 6% match over the next 2 years. I also just switched over from a traditional 401k account to a roth account for work. Plan to use that going forward.
all my "extra money" just sits in my checking though. need to seriously look in putting half of it somewhere
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By company flat rate, do you mean your company was matching up to 10%? Or that they were just giving you 10% flat either way? Wow. Either way, that's huge. Mine only matches at 5%, I've heard 6% match is pretty common.
As far as the checking, yea I'd do something with it, depending how much it is in relation to your monthly expenses (3 months worth? Keep it. Two years worth? Yeah, that money can afford to go somewhere). The good thing is that we'll probably see a rising rate environment sooner than later. The bad thing is, most banks have a ton of excess liquidity, so while loan rates will rise, deposit rates will probably hang pretty low for quite a while (besides CD specials).
Before the recession, there were great options like an "Investment Savings Account" or a good Money Market account for your excess funds that you didn't want to invest and still wanted access to. Those were paying 4-5% back in 2007. Nowadays, it is tough finding anything with a return without jumping into the market.