Author Topic: Starting new job: investment options  (Read 682 times)

precociouspickle

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Starting new job: investment options
« on: February 22, 2018, 08:35:17 AM »
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!

Financial.Velociraptor

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Re: Starting new job: investment options
« Reply #1 on: February 22, 2018, 05:06:04 PM »
Putting 8% into the defined contribution plan should be obvious.  Take advantage.

The ESPP is a more difficult matter to judge.  How volatile and risky is the company?  If it is a cyclical industry, it is probably best to pass.  But if it is something like P&C insurance or a regulated utility, it is a great deal. 

IsaacEmbley

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Re: Starting new job: investment options
« Reply #2 on: February 23, 2018, 03:29:07 AM »
Well, Now-a-days multiple investing types are available on the web. People have different choice to invest their money. But I think the most safest investing type is mutual funds and international fund's investment. One of my friends invested in International funds, as they are the long term investment and the most secure type of investment. Online sites like Forager Funds Management is available on the Internet, where one can invest the value.