My cousin started working for a firm that has a 3% match along with other benefits but doesn’t want to invest right now. If I pay him the monthly contributions he is willing to let me take benefit...

Posting as :
works at
You are currently posting as works at

Sorry OP, but that does not sound like a good idea. I anticipate that it would become a much larger headache in the future.

like

Doesnt sound like a good idea. If it's a traditional 401k, then he'll get the tax deduction, not you. If he doesnt leave the company, I don't think you can just withdraw the money before that. If he decides to contribute while still there, it would be difficult to differentiate the commingled funds. Best thing do is for you to be a good cousin and convince him how stupid it is to forgo $2100 a year in "free" money. If he is that hard up for cash, he can cash it out and pay 10% penalty and still be out on top.

like

If you really trust each other and want to do this, maybe simpler to set it up as a loan with some agreed-upon interest rate. That way if he wants to start investing more later he can do whatever he wants with the 401k without complicating the arrangement - and the money can stay in there long term which is the tax-efficient way to go.

like

...In other words if I pay him 3% of his salary, I will “own” his 401k until in future he decides to start his investing. He doesn’t plan to start in 3 years. Do you think it’s worth the hassle or too much work involving post-pre tax calculations etc.?

How would you segregate and keep track of the investments over time? Seems way too complicated

I was thinking to withdraw all the money and pay a tax on it before he starts.

Agee with others, it just doesn’t seem worth it. Out of curiosity, how much would your net gain per year be (I.e. how much is 3% of their salary)?

70k salary. Also forgot to add earlier that cousin is more than a brother to me. We have in the past shared the same credit card and paid off each other without any issue.

My question is more on any monetary gains vs the effort involved. We both agree that we shouldn’t leave any money on the table. But appreciate earlier responses which were absolutely spot on based on info I provided

Related Posts

📊 Poll: Is Snapchat worth it's 3 billion 💵💵 IPO valuation?

like

Seeking advice on pursuing opportunities in healthcare / life sciences strategy - looking for managing director / VP level in the ME region. Interested in consulting or industry. I have 19 years consulting + industry combined experience in pharma and US hospitals. Thank you 🙏

like

What did you do with your RSU’s after it vested? Did you keep it or was it sold and reinvest to another stock/fund/etf?

I have a total taxable income of 1978050 for. Which I need to pay 330915 as a tax as per new regime.
I don't have any investment and also as working from home living in my home town so no rented house.
Please help me to save some tax
TIA

like

Anybody got a sibling who is obnoxiously cheap yet has a ton of money?

like

I am currently seeking a role in Healthcare Policy Leadership in the DC Market, my experience has been in in the intersection of Healthcare & Social Services in both the Private and NonProfit sector. I have a BA in Forensic Psych, an MPA, an MPhil in Public Policy and currently in the last leg of my PH.D in Public Policy with a specialization in Health Policy.

I would appreciate any advice anyone could give that might point me in the direction of any open roles.

like

Which of the Big 4 is best for a new MPH grad looking for their first time role healthcare related, esp project management focused? (Assume east coast)

like

Does EY provide tuition reimbursement / MBA sponsorship? I know Deloitte has GSAP, but I wasn’t sure if EY has something similar. If so, what are the requirements?

like

Hello, I am going crazy. I am supposed to close on a house on Tuesday. The buyer did not perform an inspection and the lender did not order an appraisal. The lawyer says that everything is good on her hand but I am not sure if she is the deciding factor here. Can a home close without a physical appraisal ? I don’t have a closing time yet, just the date. My realtor reached to the lender and have no heard back.

Is it normal to sign a bunch of disclosures for a Wells Fargo rate lock? Will I have to pay anything is I end up not using wells ?

Anybody know if and how much I can contribute to my Roth IRA to reduce my 2020 tax liability? I’m trying to pay less taxes but Jesus this pandemic has been great for my law firm and salary.

like

Do you share details about raises/bonuses/other financial gains with friends or do you keep it to yourself? I have a few friends who will tell me everything from how much money they make to how much their husband spent on them for their bdays to how much their parents make?? To me that feels like bragging/being arrogant. It’s also the way they say it, feels very much like seeking validation to me.

like

New to options on fishbowl - I have a call itm with Robinhood that expires tomorrow. If I don’t sell it, what happens? Will they exercise or am I better to sell it?

like

Everyone has a different perspective on this but would love to hear yours. Someone has debt ranging say 4-5% interest rates. Do you attack debt more then investing to move towards a debt free life or do you go after investments since they return historically above that then paying down closer towards retirement. I know the latter looks better on paper but what about the psychological factors of being debt free and the guaranteed return on interest savings.

like

Guys Tom uses Excel to segment his revenue streams from villager debts

Post Photo
likefunny

Hi All, What's your view about SAP SDC work culture and benefits. I have another offer from Airbus. Which one will be good for career.

like

For those of you that currently pay 30% of gross income towards rent, do you still have money to save? I’m moving to NYC and am used to paying only 15%. Pay is now 125k base so I’m looking for apartments around 2800-3k

like

Which is good brokerage account for etf and stocks. Can't use robinhood due to restrictions

I am plat exec on AA and wife wants to purchase ticket to Europe (traveling alone). Any benefits of booking it through my account (and assigning her FF#) or none?

like

What is everyone’s top 1 or 2 favorite books on personal finance? I’m always looking for a new one to bring into the fold of what I’m doing

like

More Posts

Have an IB Analyst interview for a MM diversified industrials group, can anyone help me focus my prep?

Been digging into the obvious (e.g. resume, DCF, three-statements, basics of LBO, why IB + this bank) but don’t want to spend unnecessary time on everything that comes up in a google search if it isn’t the right approach.

My background is BSc & MSc in Acct, back office BB intern, big4 audit intern, and current title FT ~ 1.5 yrs. My current role is heavy on 3 statement models/IS forecasts.

like

Any other coat brands besides Moncler that make those glossy nylon down jackets?

Post Photo
like

Hello Fishes,

I left capegemini on 4th of Feb and I still haven't got my relieving letter as well as experience letter. I'm trying to access my capegemini portal from
webvpn.capgemini.com but I'm not able to access that either. Please suggest me what should be done, my next employer is asking for relieving letter.

like

This design makes me ridiculously happy. That’s all.

Post Photo
like

Hi, I am looking to be referred into some top consulting firms. I am a Project Coordinator at Nielsen with 1 YOE. I have applied thru various job portals but the application does not seem to be viewed or going forward. Would be really helpful if my fellow fishes can refer me. I will be happy to discuss further on this and share my CV. Have a good day!

like

How is IBM in terms of job security?

like

Please suggest that is there any way to ask for counter offer in Capgemini..I have joining in next month..Will they revise the offer letter?Capgemini

like

Hey! I’m from Spain, and I’m thinking about find a job overseas, maybe in central america or southeast asia… I have experience in finance consulting… do you have any recommendation, contact or tip that could help me?

I don’t know if try to find a job first and move then, or move out first and find a job from there.

Thanks!

like

How much are guys making as Project/Emgagement controllers working for big4? (Manager level)

like

Hello !

I am looking out for a project switch within Accenture.
My primary skills include MSBI development with hands on experience in Power BI.
Total Experience:3 years.

Tools : Visual Studio, JIRA , Power BI , Microsoft SQL Server , Github.

Please DM in case of any leads.

Thank you

like

Is Hewlett-Packard Enterprise a product based company? Will it be affected by the recession?

like

What resources do you all use to prep for strategy and business operations interviews at tech companies? I’ve heard rocket blocks and prep lounge but lmk thoughts!

like

8.1 YOE as a business analyst, 2 offers IQVIA -20lpa and wipro -24 CTC, got 45 days remaining before joining. Should i expect higher offers? Around 30?or stop looking for it?plz

like

What can I except a product manager role interview questions to be?

like

How much one should ask with 9+ yrs of exp in qualys? Howz WLB?

How long it takes to get laptop from pune office.
I need to go on 1st sept.

Would you break up with your girlfriend if she doesn’t want kids and you do.... this has been weighing on my mind a lot recently...

like

Are there any law firms out there with better comp than Big 4 tax and won’t work you more than 50 hours a week?

Hi Sharks,

I have received offers from
Nagarro - - salary 30 lpa
Seimens gamesa - - Salary 32 Lpa
Delloite - - Salary 33 Lpa
Which one is better in term of WLB and learning, my exp is 9 years. Please suggest

like
like

Additional Posts in Personal Investment Chatter

How does one decide whether to buy in a normal brokerage account vs. Roth IRA?

like

Is this for real?

Post Photo
like

What is everyone’s outlook on crypto? I have some litecoin from awhile ago and wondering if I should indefinitely hold it. Thanks!

like

My wife reads nearly an entire book per day just in her spare time after work, no exaggeration. I’m amazed by her and wondering what ideas are out there to monetize her skill? Book editing maybe?

likefunnysmart

What’s the max umbrella policy coverage y’all have seen offered by insurance providers? Looking to get one for the first time. Anything I should consider/ask the insurance company?

like

Need help on how to invest. We are positioned to pay off our house later this year. Expect to work for another ~20 years. 401k fully funded and have some company stock investments maturing over the next few years, but no investments outside of that. Kids have a prepaid college plan for certain schools. Emergency fund is solid. Where should I look to start investing? I have fidelity for my 401k, would they be good to open a taxable investment account with, or are there better options?

likehelpful

New to investing and have 60k I want to buy index funds/ETFs with, should I invest like 5-10k a month or all at once? For context, I have emergency fund already established and contributed to Roth IRA

like

Just checked my credit score and it’s an 835. Is it possible to ever get an 850? If so how? (Know it’s not impacting any of my loans, just curious)

like

Used car prices starting to come down?

like

Recommendations for how to allocate 401k with Fidelity. Just switched jobs and have to move from Merrill Lynch to Fidelity

like

Using Robinhood to do some day trading. Bought a share of Amazon a few months back and have almost 30% ROI. Should I sell? It seems like it is too high right now and the bottom could fall any moment.

like

Best HYSA with a good account opening bonus?

Any good ETFs to invest Roth into?

like

What are the best prep materials to prepare for the CFA Level 1? Looking for some recommendations.

like

What are your thoughts on lending money to family when asked? (Cont)

like

Any tips or tricks for a first time home buyer saving for mortgage trying to avoid pmi? Any advice appreciated. Cont.

like

I don’t get it: Why would anyone invest, for example, in a 6% dividend yield etf with a 0.50% ER (ie EMHY) instead of a 9% dividend yield etf with a 2.5 ER (ie YYY)? Wouldn’t you still be getting better results with the expensive one?

like

Looking at investing in FedEx and GameStop. Check out Forward PE and PEG, good earnings growth and operating cash flow. Thoughts?

Getting about $2200 back from Federal and $1300 back from NY State. Claimed 2 for both last year and having 2nd kid this year. Should I bump to 3 or keep as is?

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal