A matching 401k is really a great asset to have when job hunting. It's a sure-fire way to quickly compound a large amount of money. It's "free money" as they say, and always worth contributing to get the maximum match.

Also, 401k's often (don't have to be, but usually) are usually pretty moderate index funds. The risk associated with them isn't always like buying Tesla before he went and made his "$420" comment. They're a good start to investing when you don't know that much about it all.

As in my other comment, I mis-read the contract details. They will contribute only 2% and I am able to myself contribute 2-15% (isn't this the same as just saving myself?).

Also the country is Thailand, so there might be differences.

> Isn't this is the same as just saving myself?

Yes, it is. Though you'll more than likely see returns much higher than a standard (but safe) savings account will give you. You'll also get that 2% float on top of free money.

2% still isn't bad. Free is free, as I said.

In my particular case it's only 5% (best case):

50% match up to the first 10%.

So if I contribute 1% of my pay to it, I'll get a .5% match. If I contribute 10% to it, I'll get a 5% match. I can contribute more but I'll only ever get that 5%.

In your case, this is good compared to my situation in that you don't have to contribute 4% to get that 2% match, you can contribute even just 2%.

This is in the US FWTW. It's a pre-tax situation. I don't pay taxes on my contributions or my employers contributions; but I do when I withdraw them (earliest I can start withdrawing is age 59-1/2. The assumption is that when I start withdrawing, my tax rate will be lower than it is now so I'll still "come out ahead".

Interest rates are low right now so you aren't feeling the pain, but when the rates go up, inflation will eat your savings account. Look into a HISA account or an Index fund portfolio (higher risk/return) using Lazy Portfolio Bogle Heads is a good place to start.

Thanks, will check it out~

First thing I'd say with the new job is "maxing out" your 401k is $19,000/year not whatever percentage the company will match. If you can afford to put $19,000/year away, you'll likely retire before almost everyone you know. Assuming after tax income of $60k, you should be able to retire in 25 years: https://networthify.com/calculator/earlyretirement?income=60...

Unfortunately I do not live in US, so it's not exactly a 401k (barely know what it is). And upon reading the contract again I see now that they contribute only 2%.

As my salary would be 135k THB (4293 USD) per month (51k/year berfore taxes) that would be only 1000 USD per year, barely anything.

I probably save more than 19k USD per year by myself though, although I'm without children/house/etc right now so that might change.

The real power in that 19k is over a long period of time. I have no idea what the rates you get in standard savings, but assuming 2-3% interest on that you're looking at ~$450,000 over about 20 years. VS ~800,000 over 20 years at 7% interest (that's a pretty conservative investment interest rate).

But as you mention, you're not in the US, so you may not be limited to that 19k (That's simply a different tax strategy, no one says you can only save that much).