Company Perks: Getting the Most Out of Your Job

Day 1 of a new Job:  Orientation.

You sit there with binders and packets as HR shuffles through 401(k), Insurance Plans, and other standard policies.  If this is your first job, you can feel like a deer in the headlights.  What does all this mean? How does it affect you financially?  No time to zone out. These standard Benefit Packages with affect you financially.  Take time to understand what your company offers besides your paycheck.

401K

If your company offers retirement matching for 401(k)  or Roth 401(k) this is a no-brainer for savings. 

Always contribute enough to get the maximum match. Say your employer matches 50% of a 6% contribution. That means if you contribute 6% of your salary, your company will throw in half of that amount. If you are young and your budget can afford it, max out your 401(k). Your future self will thank you.

There are 4 things to look for when picking funds:

• Better-than-average returns: A fund, if it's worth your while, should have performed in the top half, and ideally the top 25%, of its peer group over a three-, five-, and 10-year time span.
• Low price: A fund's expense ratio -- what you are charged annually and what will lower your overall return -- should not exceed the average among the fund's peers.

• Solid management: If you're opting for an actively managed fund (as opposed to an index fund), the manager should have a solid track record of experience.

• Reasonable size: Sometimes when a fund becomes too popular, its asset base -- the dollars invested in the fund -- gets bloated. That means the manager can't move in and out of a stock too quickly without moving the market.
• In picking the right funds for your portfolio, make sure you diversify your investments. That means don't over-invest in any one sector such as technology or in any one investment style such as growth stocks or value stocks.

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Employee Stock Purchase Plans

Additional compensation methods for Publicly traded companies is to offer an option to buy company stocks at a discounted rate at set intervals of the year. You elect to have a certain dollar amount removed from your paycheck each period to go toward buying company shares.  If shares for your company stock are trading at 50.00 and your ESPP is at a 10% discount, your ESPP will buy them at $45.00. While ESPP are a great way to own discounted stocks, don't put all your eggs in one basket. Remember diversification is the key to consistent portfolio growth

More information on ESPP here ->  http://www.investopedia.com/articles/stocks/12/employee-stock-purchase-plans.asp

Flexible Spending Accounts

A Flexible Spending Account (also known as a flexible spending arrangement, FSA ) is a special account you put money into that you use to pay for certain out-of-pocket health care costs. The money contributed to your FSA is set aside before taxes are deducted, so in most cases you save about 30% on your Federal taxes. The average tax savings for a person earning $50,000 who contributes $2,000 into an FSA account is approximately $600. That means you get $2,000 worth of health care purchasing power PLUS pay about $600 LESS in Federal taxes.

You can use funds in your FSA to pay for certain medical and dental expenses, including copayments and deductibles.

FSAs are available only with job-based health plans. You can put up to $2500 into an FSA each year. You generally must use that money within the plan year. But your employer may offer a grace period or carry over

Even if you are Young, Single, and Healthy it's smart to have some money in your FSA because it can be used on a wide variety of Health items like glasses, allergy medications (with prescription) or contact lens solution.  Find out what is elligible here:

http://www.discoverybenefits.com/participants/eligible-expenses/eligible-expenses-chart

Wellness Services

Companies are starting to realize Healthy Employees are More Productive Employees. Heath reimbursements are being added to encourage employees to workout and eat right. Check to see if your job offers gym or weight watcher reimbursements. Always know what your health plan has to offer. Use the free Wellness Checkup or Free Flu Shot. Being healthy save YOU Money.

Employee Discount  Programs

Your average size company should be part of some discount program. Whether it is a 3rd party group discount site like www.corporateperks.com, or discounts with local businesses.  Ask your HR Representative if your company participates in discount programs and which ones.  Employee discount programs offer deals on goods and activities. A family of 4 headed to Six Flags can save close to $100.00 on tickets and parking.  When your shopping around for deals on items you plan on purchasing, remember to check out your companies discount program

Employee Referral Program

More employees are hired through reference than Resume Submittal Programs. Use your networking skills and begin to refer your talented friends to open positions in the company. If you work for a large company, peruse the Hiring Portal to see what jobs are open.  Each employee  referral that results in a new hire can net you a couple hundred to thousands dollars . ( Unfortunately these payments are considered Bonuses and are subject to higher taxes..but hey...more money is more money)