Bonus!

I have been mentioning that my company decided to give out annual bonuses for 2009. Well, I found this week how much mine is, and it turns out it's more than I expected. I work for a fantastic company and even though the recession hurt us in terms of clients, we are still doing good for where we're at. All in all, the company is being incredibly generous. The most surprising thing was that my bonus actually increased from last year's. Wow, I feel very privileged, as I still have a job and on top of that I'm getting a bonus! (It's also a nice addition to my mediocre salary, since 2010 will be the second year I will not be receiving a cost-of-living adjustment/raise.)

How much was my bonus? After taxes and 401k were taken out, I netted $3,150.
The following is my allocation:

E-Fund: $1,000
Roth IRA (2010): $1,000
CFA June Exam Fees: $500*
Travel Fund: $225
Gift Fund: $125
Clothes: $100
Other/Misc: $200

*still debating if I want to take the exam again in June

Did you get a bonus this year? Is your job giving you a raise in 2010?

Profit Sharing

My company has a fantastic benefit for all of us employees: a profit sharing plan!

I recently received the 2008 statements for my own contributions to my 401k as well as employer-matching contributions. There was another statement in the package for profit sharing.

I was pleasantly surprised to see that for 2008 (even though I only started at the firm in June), I received a nice sum of $1,424.15. However, due to the vesting schedule, I will not be 100% vested in the profit sharing plan until I have worked at the company for 6 years.

But still, even if I only receive a portion of that benefit - something is better than nothing!

Cutting Benefits... But Not Jobs!

My company's CEO sent out a firm-wide e-mail yesterday. In 2009, some of our "extra" benefits/perks will be cut due to the economic outlook. This includes the $20 monthly gas card each employee was given, the vending machine subsidization (everything was $0.50) and no annual picnic or holiday party. What all the employees are keeping? Jobs, annual increases and bonuses.

I am thankful for my job. And how much the firm values its employees. My company has not laid of a single person and they have no plans to do so. (However, they will not be hiring any additional people for a while - so my old position will be split between a few people in the department.) Bonuses are still being paid out for 2008 (today, actually!) and we will still be getting our annual raises in April. They might be smaller than normal, but that is to be expected. Since I only started in June, so I am elated to be getting any sort of raise, let alone a bonus.

It's a happy Friday! :)

Holiday Bonus!

I went into work today and was happily surprised to find out that my company gives out holiday bonuses based on years of service! What a generous benefit.

Since I am under the 1-year mark, I received a pre-tax bonus of $500. After taxes and 6% into my 401k (automatic with any direct deposit), it came out to $256.25. Plus, due to some OT I put in, I received an extra $54 on today's paycheck direct deposit, for total extra income this month of $310.25!

$100 has already been sent to savings (split evenly between E-fund and Travel Fund) and the rest of it will be used for frivolous spending that I don't do very often! Which will mean it will help to offset my expensive weekend.

Happy Holidays indeed! :)

On Starting My Nest Egg

As of today, I am eligible to take part in my company's Profit Sharing and 401(k) plans. At 22, I was certainly the youngest person the the small new-hire retirement meeting this afternoon, however I am very excited to start (slowly) contributing to my future! In the personal finance world, it is never too early to start young.

Profit Sharing Plan: 15% of gross income automatically invested per year

401(k): Traditional/Roth options, maximum company match of 3% if you invest 6%, all company-managed funds with average annual returns from 10-15% (though we all know that past performance is not indicative of future results) and no fees/expenses

Starting with my first paycheck in October, I will be contributing 6% of my income to the Roth 401(k) in order to receive the full match. I look forward to investing at a very low-point in the markets when everything is very cheap/"at the bottom", and seeing where it takes me over the next 1, 3, 5, 10 years. My portfolio will begin in 100% equities, though I have not yet figured out my allocation of that between the fund options.

I am young, healthy, debt-free and saving for retirement!

*Note that both plans have vesting periods of 6 years, however I hope/plan to stay with this company until at least then.

2008 Grads

I have recently read (and been directed to) an article for those recent 2008 graduates who have entered/are entering the workforce. It's from the New York Times: "A Primer for Young People." The piece certainly reiterates what many pf bloggers say about personal finances - start early in retirement savings, etc etc. And, of course, we have to be happy that we even HAVE jobs in the current market!

Beginning of July, I will be signing up for my company's HMO health insurance plan. The PPO plan is much more costly, and since I am young/healthy, I will be going with the cheaper option that still provides great coverage. There is also a Flexible Spending Account (FSA) benefit, and I will be using this, too - yay for pre-tax health money!

In terms of retirement, my 90-day introductory period is up on September 8th, 2008 and you can bet I am looking forward to that! I will then be meeting with the retirement coordinator in the HR department to learn about the company's profit-sharing plan and 401(k) - there is a Roth option, hooray! What I do know so far is that for both the profit-sharing and 401(k) plans, there is a vesting period of 6 years which starts with 20% vested in year 2 and increases by the same amount until 100% is reached in year 6. Also, the 401(k) offers a 50% match on up to 6% that I contribute. Is it September 8th yet?? ;)

The Benefits of Benefits

I never really understood how much benefits can truly make an impact on your life. I found out today that my company provides each employee a $20 Shell gas card every month! That's $240 per year, tax free. With gas prices at-or-above $4.50 in my city, and my commute now 20 miles each way, that $20/month will help out. They also provide complimentary bagels and pastries in the small on-site cafeteria - which means free breakfast for me, as I love bagels! (Plus all the green tea I can drink, especially since I am not a coffee/lots-of-caffeine fan, though I enjoy the occasional Starbucks.)

Also, the company also provides a "Readership" program where you can check-out books on various subjects, such as leadership, management and finance. I was happy to find out that a few books in their solid selection are on my "To Read" list! Much easier than a trip to the local library, too. :)

I received a free lunch for being the new hire in my department - and since I am short/petite, I do not eat a lot, so a large lunch means leftovers which means dinner! Thus, I got through my first day of work without spending a penny. I will officially begin my budget once I get my first paycheck at the end of the month and start truly figuring out my finances, which I am certainly looking forward to doing - and of course I will be blogging about it!

EDIT: I will post more about other benefits as they begin applying to me - most occur after my 90-day introductory period and some begin July 1st.