New Job and New Investment Opportunities
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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. [...]