My husband's employer recently stopped matching his 401K. We were wondering if we should stop contributing to it until they continue contributing to it again. I know that sounds like it would be a bad idea, but right now we could use the extra $$$ each week and with his employer not putting anything in... Well, we're confused, I guess. We were going to contact our financial advisor but we already know what he's going to say-- NEVER STOP SAVING! hehe!
I think I'm with our advisor. My theory is that even though his employer isn't matching it anymore doesn't mean that we shouldn't be putting away that certain amount each week for our future! I guess I'm torn. We haven't done anything yet, though.
And now for a rant that isn't part of the financial issue from above-
One thing that is bothering me is that his company is BOOMING! Background- DH works for a private company that has minimal employees, 50 max. His best friend is half owner, and his friend's dad is the other half owner. DH is the manager of one of the two stores.
Anyway, DH's friend (the owner of 1/2) admitted to DH that they stopped matching in part because they are going to be building a new store. The city of St. Paul granted the company half (4.something million) for the expansion and the company has to come up with the rest on their own, which is why they are no longer matching the 401Ks.
Is this wrong?? At first we were angry. In this economy, the store (which is a home interior/decorating company) is putting large chains in the area out of business. The company is doing so well! They are not fighting to stay above water or to keep employees. Not only are they not matching 401Ks anymore, but they are no longer giving raises or bonuses.
We understand that the owners have to do what it takes, but DH feels taken advantage of. He works hard for the company, more than what JUST his salary is worth. The bonuses, anticipation or raises, and 401K made his hard work more worth it. We feel the owners are being selfish for taking so much from the employees to add to their own 'empire'. (Hardly an empire, but you know what I mean!) But then again, I feel guilty for thinking that they are taking from us, since they are the ones who provide for us, in trade for DH's hard work. I'm just feeling so angry about this, and DH has been looking for a new job, but I'm sure you can all guess how well that's going.
Question about 401K
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