08-08-2021, 10:44 AM
(08-08-2021, 10:14 AM)NilesMike Wrote: "While I am rambling, it would be nice if employer HR departments had a clue. I have worked for the GOV and a Fortune 20 company now, and the lack of knowledge from the 401K program administrators is mind numbing. I was wiser one year into investing."Here is the short version of how the program most likely works. I will make up dates. They deduct from your check from JAN1 to JUN 30. You get a 15% discount to the closing price on JUN 30th and it posts within the month. If you decide to sell or transfer your shares at a later time TROW can handle it. HD uses a brokerage service that has 100 companies on their program. Rinse and repeat every six months. It's a good program if your company is solid at all because in all but a severe bear market you are breaking about even at worst with upside when the market swings.
I am also in my retirement job 401K program ( why not? free $$ is free $$)
We can buy company stock at a discount from the "fair price". Try finding out how the fair price is established. welllll that's not so easy. The company referred me to the administrator, T. Rowe and they referred me back to the company. ARGH.
I still went into the program anyway because free $$... and discount are how this 100% German for 4 generations rolls. LOL
Unfortunately the lower lever employees are struggling to pay the rent and a car payment so a 15% discount isn't enough to cause them to invest much. If you spent 5 years at HD it was worth doing. Your mileage varies at a lesser company.