Is it worth it to contribute to my company's 401k?
July 21, 2012 3:36 PM Subscribe
Is it worth it to contribute to my small company's John Hancock 401K, given the high expense ratios and no employee match?
posted by anonymous to work & money (6 answers total) 3 users marked this as a favorite
I recently joined a new company, and I'm leery of contributing to my 401K since I've read quite a few bad reviews about John Hancock's fees, even for index funds. It seems that they can be anywhere from 2-5%. Since we don't get an employee match, I would definitely be eating a lot of those hidden fees myself.
However, I'm aware of the tax advantages, and I'm really far behind on my retirement savings plan. I'm nearly 32 now, and I basically only have about roughly 4K in a Roth IRA and a Certificate of Deposit.
Some pertinent info: I make about 55K before, 41K after taxes, and I live in California. I'm trying to save up about 1/3rd of my salary after taxes for retirement.
If I don't contribute to my company's 401K plan, what are some alternatives?