Yep. I feel the need to put it another way-- if it's a full match, then the comparison is 100%, being trimmed by 1.4%.There's a math error here--the 1.4% is of the account balance, the 2% is of the OP's income which I presume is much, much larger. 1.4% is high but it won't take 2/3 of the match or anything close to it. Assume the OP makes $100k and contributes just enough to get the match. That's $2000 from the employee and $2000 from the employer for $4000 total. 1.4% of that is $56 (every year) while 5.75% is $230 (one time front end load). However, I'd be wary since EJ is likely to charge front end loads, back end loads, annual account fees and so on for any type of account that they can. Still, either as a 2% free employer contribution or a 2% + 2% match, it makes sense to take it and just go with the lowest cost method possible once you figure out what that is.I feel option-2 is the lesser evil. Assuming (as @exodusNH asked) that 1.4% is annual fee but levied monthly, you can choose to invest in Vanguard or other fund families. The 2% that your employer kicks in will pay this 1.4% fee, with a net of 0.6% in your pocket.
Better a 0.6% net match than no match at all ...
Statistics: Posted by BirdFood — Wed Aug 28, 2024 11:04 pm — Replies 21 — Views 1812