I started a new job and have been presented with a few options for investing. I was hoping to get some advice from a fresh set of eyes.
The first option is a Defined Contribution plan where they will match 100% of my contributions for up to 4% of my salary. Beyond that they will match 50% of my contributions up to 8%. So at 8% I would get a 6% match.
The second option is an employee stock purchase plan. I can purchase stock between 1-10% of each pay and they will match 25% in the first year, 33% in the second year and 50% after three years. There is a 12 month rolling vesting period.
My thoughts are that the DC plan is pretty much a no brainer and I should take advantage of that. The second option is what I'm strugging with. I have no idea if I'll be there after even 2 years so the additional contributions aren't something I can count on. I'm also worried about the tax complexity of such a plan and the bias toward a single stock. Although, at 10% per cheque and a 25% match that would put a yearly contribution at around $7000 which is only 2% of my entire portfolio (which will also benefit from regular contributions.) One option could be to reduce my VCN position in order to compsensate for that.
Current finances employed in ETFs (25% VCN, 25% XUU, 20% XEF, 5% XEC, 15% VAB, 5% VSC)
RRSP: $80,000
TFSA: $80,000
Taxable: $90,000
LIRA: $50,000
Other Savings: $10,000
What do you think? Am I missing anything?
Thanks in advance!
