My company gives up to an extra 2 weeks of PTO based on years of service. Stock Options/RSU have like a 3 to 5 year pay out vesting timeline with a % of it vesting every year. but you get new grants every year. So after you've been working for 3 or more years, you basically have a "full" grant value vesting every year. throw in 6 percent 401k match at 100 percent match my on paper below market value salary actually returns a pretty good total comp package. I'm not sure if switching every 2 or 3 years would provide me any significant benefit because of how my long term tenure at the company has paid off with these incentives for staying. I imagine there's a probably something about jumping around early vs mid vs late career that factors into this equation too.
Idk about it being locked in. I have seen people with Sr and Lead titles interviewing for a lower position these days. Those things don't always stay with you the rest of your life. But titles are cheap. Salary, bonuses, and stock are money.
For me, I had considered job offers with higher salary. But then when I looked at the salary and reduced PTO I realized my hourly wage didn't change that much. When I factored in the stock package and downgrade in 401k match these 10%+ percent salary increases put me behind near term (near term being about 3 years until the new company started to vest and become regular earnings).
How does this work out with all in value when it comes to stock options or other vesting based non salary compensation? Aren't you leaving a lot on the table if you switch every 2 years? Does salary alone make up for that?
But the point is we can't trust personal responsibility. If a significant volume of the population is basically guaranteed to not invest and save voluntarily for retirement that is always going to be a social problem. Also, there's the problem of employers voluntarily providing retirement programs. Sure, I think there's a question of what or how that savings is invested for retirement (pension, 401k, etc), but it seems there needs to be more mandate to require employer's of a certain size to support retirement plans. And possibly even more mandate to require contributions to retirement plans. The article describes this in Australia: "Australia’s Superannuation Guarantee requires companies to contribute the equivalent of 11 percent of an employee’s monthly pay to an investment account that is controlled by the worker, who can also put in additional money. The “Super,” as it is known, includes full-time and part-time workers and has proved to be enormously successful. With its relatively small population — just 27 million — Australia now has the world’s fourth-highest per capita contributions to a pension system, and almost 80 percent of its work force is covered."
I think the "Pensions you don’t contribute to and the amount you get is fixed." is a bit murky. If you have a pension that probably means you have a lower salary compared to an equivalent non pension job, because part of your labor value goes into funding the pension. But the main thing is 401(k) puts a lot of responsibility on the individual. And as this article points out, if you put a lot put retirement financial planning on the individual, that creates a larger social problem since many people can't sufficiently do that themselves, even if they are being responsible with what they earn.
How do you think pension plans make money? They are managed by fiduciaries responsible for investing. Guess where they invest. 20% of the stock market is owned by pension funds :https://retiregenz.com/what-percentage-of-the-stock-market-is-owned-by-pension-funds/
So my employer did this thing where new hires automatically got enrolled in a 401k. If you did absolutely nothing to your 401k, each year it would automatically up your percentage to a max of Y. Is that common or uncommon? And in this world of 401k over pension, should that be more of a norm to help protect people that don't know better build retirement savings. It doesn't solve the problem of folks not having enough money and needing to use 401k for emergency funds...
Is it possible that commenter is putting money into retirement accounts but not putting that money into any funds, etfs, or bonds? But even then, I would hope it's in a money market type core position where they are getting some return. But I rolled over all my stuff into a target fund at my new employer 9 years ago. I'm up 21% on my cost basis.
Pensions worked the same way. The difference is personal responsibility and inequity of employment and wage. But who's 401k deprecates in value over the long term anyways? If you select a target fund that should be fine.
I thought they already had that during working hours. I swear sometimes while I’m working on the east coast hours, my west coast colleagues signs on at 12PM EST and signs off of 530EST and aren’t around to answer my 6:30 EST pings. Meanwhile I’m waking early for EU client calls, and handling 9PM meetings with Asia offices. So it goes. I don’t think we can have it both ways where you can be remote working from anywhere yet not be on the hook to work hours during the defined operational times. I’m not working 9 to 9EST, and take long breaks mid day if I have evening meetings, but there are operational realities of needing to talk to people to get work done and those times need to be defined.
What’s tricky about RSUs? Doesn’t my brokerage account, fidelity in this case, just provide the forms I need to enter? I also thought if I sold the RSU’s the second they hit my account there was not really a tax implication since taxes were paid from the gross RSU value so my net RSUs were a lot less than than actual gross grant number of RSU.
Totally am. Not maxing out my 401k, but employer does 100 match of 6 percent which gets me close to the same sum compared to folks that max out with less generous matching. I am also doing the planning on how to back door roth ira next year and just converted my old tIRAs.