Yesterday, the trading window opened for my company stock, so I decided to take the opportunity to increase my 401(k) contribution. Even though raising my contribution from 4% to 6% of my salary doesn’t affect company stock (employer matching contributions, which are half invested in company stock, half invested following my allocation rules) as the match has a maximum of 4% of my salary.
This will force me to save more each month, even if I won’t realy be able to access that money for a while. It will also reduce my tax liability, which would be a good idea until either a) my income increases to be significantly higher than my expenses or b) my expenses shrink a little due to living with someone.
We’ll have to see see which happens first.
Published or updated February 14, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.