Real World Questions

Notredameleo · 03-15-2012, 07:48 PM

Forgive me for sounding like a child, but I just got hired, or should say am in the process of being hired for my first big kid job. They offer health, dental, vision, 401k, etc. My question is, how does that work? Its for a security firm, called brantley security. How much will all of that cost monthly? If this belongs in another thread, forgive me, I tried to find one.

jrdrylie · 03-15-2012, 08:10 PM

401k is optional. You choose to put in money (up to 16k I think) and the company matches (usually between 3-5%). As for health insurance, get it. That will likely cost a few hundred a month. Don't get dental and vision unless it is cheap or you use it a lot.

Notredameleo · 03-15-2012, 08:57 PM

What if its not a great paying job? I only get ten an hour starting out, with a raise every 6 months. Will that take my whole check basically?

jrdrylie · 03-15-2012, 09:20 PM

At only 10 an hour, they may pay for all your health insurance, dental, and vision. If that is the case, definitely take it. As for the 401k, it is always smart to put in as much as you can, even if it is only $20 a week. With the company match, that's $40 a week. It may not sound like much, but it adds up to over $2000 a year and that doesn't include the return on investment you'll get.

regoob2 · 03-15-2012, 09:26 PM

Shop around for health insurance. A lot of times its more expensive for work (group) plans because they accept everyone. My job offers health for over $300 a month while I pay under $100 a month on my own.

Ask them what it costs before you sign up.

BeerBaron · 03-16-2012, 08:10 AM

If you're under 26 you could also get back on your parents insurance if they have it. They passed that law last year and I jumped on it. Saves me like $100 a month and doesn't cost my parents anything, since they pay the same whether it's just them or them and 10 kids.

I didn't do anything with the 401k (yet) because I was just barely making enough to pay for rent, student loans, gas and groceries. I've been promoted since then and I make more now, but I still haven't gone back to ask about it. Your HR person will probably be able to give you the best details on this anyway.

fear the elf · 03-16-2012, 08:25 AM

The health, dental, and vision you should probably do some research. I'm a salaried employee and work for a good size company. They offer three different health plans and I have the cheapest policy they offer. It costs me less than $20 per pay period. Dental and vision are less than $15 total.

As for the 401k, both companies I've worked for so far in my big boy career (I'm 26 FYI), only offered the plan to employees that had been with the company for at least 1 year. If you determine that after all the necessary stuff like housing, food, car stuff, etc. that you can afford it, you should be all over it, IF THERE IS A COMPANY MATCH. If there is a match (which most companies offer), and you aren't putting in the contribution to get the max match, you are throwing away income.

I just started working with a financial adviser and was told that it's best to only put in what you have to to get the full match from your company. Extra money is better off invested elsewhere, like a Roth IRA. 401k's apparently were developed by the government to defer taxing your income so they can make more on it later (don't remember how, but you might want to do some research on that, just to confirm). Also, there are a lot of restrictions and penalties about accessing that money early and how you HAVE to be begin accessing it at 70.5 years old.

Anyway, hope that helps a little...

jrdrylie · 03-16-2012, 08:30 AM

For a young person, Roth is definitely the way to go. You are taxed up front on the money so when you retire, you aren't taxed. That means the gains aren't taxes either. That adds up to thousands of dollars you are saving in taxes.

Jughead10 · 03-16-2012, 08:49 AM

Quote:

Originally Posted by BeerBaron

If you're under 26 you could also get back on your parents insurance if they have it. They passed that law last year and I jumped on it. Saves me like $100 a month and doesn't cost my parents anything, since they pay the same whether it's just them or them and 10 kids.

I didn't do anything with the 401k (yet) because I was just barely making enough to pay for rent, student loans, gas and groceries. I've been promoted since then and I make more now, but I still haven't gone back to ask about it. Your HR person will probably be able to give you the best details on this anyway.

Rent? I thought you had to live with your parents to be on their insurance. Is someone committing fraud here? You may have to bribe me to keep my silence.

Shane P. Hallam · 03-16-2012, 08:50 AM

Quote:

Originally Posted by Jughead10

Rent? I thought you had to live with your parents to be on their insurance. Is someone committing fraud here? You may have to bribe me to keep my silence.

You don't have to live with your parents to be on their insurance, no.

BeerBaron · 03-16-2012, 08:51 AM

Quote:

Originally Posted by Jughead10

Rent? I thought you had to live with your parents to be on their insurance. Is someone committing fraud here? You may have to bribe me to keep my silence.

Not that I know of. I had to wait until their enrollment period to get back on but they took me right back without a fuss. My brother is still on it too and he lives in Florida.

jrdrylie · 03-16-2012, 08:51 AM

I thought the only way you could stay on your parents insurance is if you didn't have a job that offered insurance.

BeerBaron · 03-16-2012, 08:53 AM

Quote:

Originally Posted by jrdrylie

I thought the only way you could stay on your parents insurance is if you didn't have a job that offered insurance.

Couldn't tell ya. All I know is that they took me back without any kind of fuss and I'll save money for another 2.5 years or so because of it.

Hopefully. Assuming it's not repealed or anything which seems likely if we have a change of presidents....

jrdrylie · 03-16-2012, 08:55 AM

All I know is when it passed, I tried to get back on my parent's plan they said I couldn't (I work for the Army) and then my premiums increased $30 a month. A double kick to the nuts.

Jughead10 · 03-16-2012, 08:55 AM

Quote:

Originally Posted by Shane P. Hallam

You don't have to live with your parents to be on their insurance, no.

Oh I think they changed that rule then. Because I was doing the same thing at one point and I was pretty sure I was committing fraud. But I was also living out of state so who knows.

BeerBaron · 03-16-2012, 08:57 AM

Quote:

Originally Posted by jrdrylie

All I know is when it passed, I tried to get back on my parent's plan they said I couldn't (I work for the Army) and then my premiums increased $30 a month. A double kick to the nuts.

Aren't you also married? Maybe I'm thinking of someone else, but that could have something to do with it if so.

All I know is that when it passed, I mentioned it to my parents who asked my dad's HR people. They said I could get back on it but had to wait until enrollment which was last August I believe. So I was on my work insurance until then, then switched over to theirs and have been on it with no problems since.

jrdrylie · 03-16-2012, 09:01 AM

I am married but not at that time. I got married seven months after the law was passed.

Notredameleo · 03-16-2012, 10:34 AM

Thanks for the input everyone!

iowatreat54 · 03-16-2012, 11:11 AM

Quote:

Originally Posted by jrdrylie

For a young person, Roth is definitely the way to go. You are taxed up front on the money so when you retire, you aren't taxed. That means the gains aren't taxes either. That adds up to thousands of dollars you are saving in taxes.

Indeed. I set up a ROTH IRA last year. The only down side is you can't take it out for a while, or well you can but pay a penalty. But it's really the way to go because it's a long term investment and even if you barely put anything in each month/every other month/whatever, it pays off the longer you leave it. Definitely take the option if your company offers it, especially if they match anything.

BeerBaron · 03-16-2012, 11:14 AM

Quote:

Originally Posted by iowatreat54

Indeed. I set up a ROTH IRA last year. The only down side is you can't take it out for a while, or well you can but pay a penalty. But it's really the way to go because it's a long term investment and even if you barely put anything in each month/every other month/whatever, it pays off the longer you leave it. Definitely take the option if your company offers it, especially if they match anything.

I'll have to ask about my options again for that. I turned it down when I first went full-time because I was barely making enough to cover everything else at the time. My dad wanted me to look back into it but I never did.

ImBrotherCain · 03-16-2012, 11:20 AM

Quote:

Originally Posted by jrdrylie

I thought the only way you could stay on your parents insurance is if you didn't have a job that offered insurance.

This is correct

BeerBaron · 03-16-2012, 11:22 AM

Quote:

Originally Posted by ImBrotherCain

This is correct

Clearly, not correct. As I've explained repeatedly. I had absolutely no issue getting back on my parents insurance, all I had to do was wait for the enrollment period.

iowatreat54 · 03-16-2012, 11:23 AM

Quote:

Originally Posted by BeerBaron

I'll have to ask about my options again for that. I turned it down when I first went full-time because I was barely making enough to cover everything else at the time. My dad wanted me to look back into it but I never did.

Yea, I mean to each his own, but even if you put a little money into something like that, it pays off. Plus, I believe a lot of the plans that companies offer you can keep even if you leave the company, so if in like 5 years you are making more money, you can start putting in more if you want.

A lot of 18-25 year olds don't really think about putting money away for retirement, but there's a very good chance we will all be ****** when it comes to social security and retiring when the time comes, so I figure for the time being I can survive without drinking for a weekend and put that money towards retirement.

God, I'm old...

ImBrotherCain · 03-16-2012, 11:24 AM

Quote:

Originally Posted by BeerBaron

Clearly, not correct. As I've explained repeatedly. I had absolutely no issue getting back on my parents insurance, all I had to do was wait for the enrollment period.

It is... You can get back on your parents yes but it is technically fraud.

iowatreat54 · 03-16-2012, 11:28 AM

Quote:

Originally Posted by BeerBaron

Clearly, not correct. As I've explained repeatedly. I had absolutely no issue getting back on my parents insurance, all I had to do was wait for the enrollment period.

Ya, the rule in general is you have until you're 26.

I know for like spouses, some providers have a rule that whichever person's plan began first or pays out first is the one you have to take, or some specifications like that. I'm not sure if there's similar for dependents, but I doubt it.

I only got vision because it was dirt cheap. And I chose the cheapest medical because I have no one to cover but myself and I have like only extreme emergencies and once/twice a year check ups covered.

EDIT: Yea, I guess as BB said there's that grandfather clause or whatever, but I haven't met anyone that was included in that so I wasn't aware of it.