New Job and New Investment Opportunities
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I have just accepted a new position with an oil and gas company in Calgary. Career-wise, this is a great move for me. It is even better from an investment perspective.
At my ‘old’ job, the employer sponsored investment programs were extremely thin. As you will see in the following table, the company match components were very poor compared to this new position. All-in, I will be pretty much doubling what I invest every year – primarily due to the employer matching of invested funds.
This is how the new program compares to my old one:
| Pension Plan | My Contribution: 3% Employer Contribution: 2% |
My Contribution: 2% Employer Contribution: 4% |
| Employee Stock Purchase Plan |
My Contribution: 5% Employer Contribution: 0% (Stock is purchased at 85% of market price) |
My Contribution: 5% (Used to purchase company stock) Employer Contribution: 5% (Used to purchase benefits or direct to an investment account) |
| Stock Options | New hire grant Grants on promotion Have never been able to exercise due to constantly being under-water |
New hire grant Annual grants Many employees sitting on large gains |
As you can see, from a purely investment related perspective, I am going to be much better off at this new job. I am still working out the funds I will invest in for the pension (the only option for the pension plan is mutual funds managed by large pension fund managers), and how I am going to handle the additional 5% that is given to me to invest. What I would like to do is transfer cash from the company provided brokerage account (we need to use a specific broker) to my CSA account and continue to invest in my dividend paying stocks. This all needs to be worked out and I will update you when I get more details.
Obviously, I did not choose this career change based on the benefits to my dividend-based investment philosophy. The opportunity from a career perspective is wonderful. However, it is an added bonus that this company cares so much about its employee’s abilities to build wealth. I look forward to providing updates as this progresses.
I would be very interested to hear about your investment opportunities you have with your employers. If you feel comfortable, please lay out some of the details in the comments below. I look forward to hearing about it.
3 Comments on this post
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Hazzard said:
Here’s my employers package:
401K: 75% match up to 8% of income
Pension: Fully funded by employer
Health: Fully funded by employer for all in immediate family
Cash bonus: Up to 4 weeks pay per year
Education: All tuition/books/fees paid by employer. No maximum
Stock: Occasional share grantsThis is a pretty big company and who knows how long these benefits will continue, but they have been around for a LONG time.
Hazzard
http://www.everybodylovesyourmoney.comOctober 24th, 2005 at 3:51 pm -
Canadian Capitalist said:
Congratulations! The benefits look very good.
October 24th, 2005 at 5:06 pm
[...] I just spent the last few hours filling out a bunch of forms for my new pension plan and investment accounts that are part of the package at my new job. As discussed in this post, I receive a pension account and an Employee Stock Purchase Plan – which can be either an RSP or regular Cash account, or both. [...]