Pay, Stock and Benefits: Retirement Savings FTW!

The stock market seems to be going pretty crazy lately. But hey, I’m not going to get into any economic or political speculation here. No way. I mean, you can get that on cable news all day long and in a more entertaining way.

What I’m thinking about is how, regardless of the ups and downs in the economy and politics and whatever else, we all have to have our retirement saving plans together. You do, right? Oh, you don’t?? I can’t say I’m surprised. You’re just like about 70% of American workers, who also don’t have plans or aren’t on track to retire. Kinda makes ya think, huh?

At Intel, we’ve been thinking about it. A lot. That’s one reason we recently made some changes to our US retirement benefits – to help employees prepare for retirement. When you are hired at Intel, we set a default 3% contribution to your 401(k) to get you started off on the right track. You can raise that contribution or lower it depending on your personal situation, but we are definitely trying to do our part to help you get started.

The other thing we’re doing is “going big” on what we call Target Date funds. These are investments in our 401(k) that have a pretty cool design. The basic idea is that the fund managers adjust risk & return over time and they’re named based on the year you plan to retire; for example, TargetDate2025. The funds you’d choose early in your career have a higher risk & return strategy because you have more time to weather the stock market’s ups and downs (seen any of that lately?). As you get closer to retirement, they ratchet down the risk & return so you have a more secure pool of resources to live on.

I don’t want to say Target Funds are “set it and forget it” because that’s oversimplifying, but you can pretty much “set it and rebalance it a couple times a year”. However, that doesn’t rhyme… So let’s just say these funds are for people who want to save but can’t or don’t want to spend a ton of time managing their investments.

If you want to be a bit more hands on with your 401(k) investments, there’s a pool of about 15 choice mutual funds that you can get into very easily. And if you’re really comfortable with choosing investments, there’s a way to get access to literally thousands of different mutual funds for your 401(k). Basically, Intel wants to help you with whatever your approach to get ready for retirement.

I know. You’re thinking, “Retirement? That’s like forever from now.” Okay, maybe it is a ways off for you, but I would call your attention to the magic of compound interest. At Intel, we’ve learned that it really pays to help our employees start saving early so they can retire on time and in the manner to which they have become accustomed – for example, watching cable news all day long. Or perhaps you have better things to do…

5 Responses to Pay, Stock and Benefits: Retirement Savings FTW!

  1. Cam Chi - intel corporation says:

    those messages above are very useful and i see this situation. sometimes please understand some cases like outsite and out of control but for any reason i just wanna work for Intel Corporation cause this is place raised me up. I remember one saying like rotating is so useful for whose would to learn new thing.

  2. Don says:

    Take it from a retiree that compound interest is the key. Start early and save something, even if it is small. I like the idea of Intel starting a default 3% contribution to the 401k. Good start. Then, the employee can raise it as they see how their account grows. Good work.

  3. Keith (and Millenniums),
    Semi-retired Intel-ite here, in fact 23 yrs married to Intel then was walked out in 2006 (as my boss handed me an award plaque).
    To help those on the fence… Put all you can into your retirement, especially if you’re young! I did at first because I thought I had more money than I needed. Then I got spendy, tapped into that budget, and stopped contributing for that nicer car or boat – who cares, I was young and retirement was not in my sights.
    Now I’m looking at my IRA (that’s where you can put your SERP when you leave Intel so it isn’t taxed… yet) and it could soon become my last treasure as I deplete my savings. I’m only 50 (that’s not old you MLNMS) but I’ll tell you, my IRA is not enough… so kinda freaking out! I ride out the dips (and don’t worry, the economy will swing back), but I SHOULD HAVE PUT MORE IN!
    Looking ahead, I can’t rely on any Gov’t safety net, so now I’m spending like I did in college (except less drugs – the real measure of global inflation in my opinion). Even more amazing, I’m trying to get back into Intel to get me through to retirement, but that’s another story.
    I’ve got 2 teens now and, OMG MLNMS have much to learn about money and work. Tell you what, I’ll keep up with you, but can you keep up with me?
    215

  4. My wife just shared some stats on how Intel is using (or not using) their retirement plan. OMG, 20% didn’t even sign up for the free money? I hope those aren’t the same people voting in the US who might care about how money is spent in the future.
    My recommendation (to my wife) was to let the brokerage (or Intel managed fund) handle it. So you know, I use Chase Bank (because I’m no longer with Intel), and they charge me a few % annually… I just pick the level of risk and they do all the rest. So if Intel is really offering this management for free, then TAKE IT! My hunch is that whoever is managing it for Intel is counting on getting new clients for when you retire. That’s the Intel Power working here I’m sure.
    Speaking of hunches, I bet when Obama met recently with Intel (along with all the other US power companies) this was discussed as a way to get a long term pulse on the future. Then perhaps Intel did an analysis to discover the scary news of how disengaged employees really were.
    I guess the only one that knows is Obama and Paul.
    215

  5. Cam Chi - intel corporation says:

    hi there i do agree. May i have support this is free for me to get ? thanks. be waiting for responde soon.