BreathFree
Recycles dryer sheets
When a slowdown occurred in my industry, my employer would immediately cut the 401k employer match and then slowly cut pay, and then hours. They would not reinstate the company match for several years later, usually only when they needed the 401k match as an incentive for new hires at the top of the next business cycle. This was a wait of three years or more. During the rise of the next business cycle they would gradually raise pay and benefits.
Of course after taking such a hit in pay, there was less money to invest and the loss of the 401k match also reduced that year's investment of new money. The timing of the benefit's cuts coincided with the stock market cycle. This has the effect of putting a smaller amount of new money to work when the stock prices are low and having a larger amount of new money available to invest when stock markets are high. Exactly opposite of what you would want. Of course layoffs would be even worst.
I would think this is a common occurrence since a company's ability to provide pay and benefits is tied to their business cycle. No wonder the average retail investor is unable to match the average returns of the stock market. They will always purchase more at the top of the market and less at the bottom because that is when they have the money to purchase.
Of course after taking such a hit in pay, there was less money to invest and the loss of the 401k match also reduced that year's investment of new money. The timing of the benefit's cuts coincided with the stock market cycle. This has the effect of putting a smaller amount of new money to work when the stock prices are low and having a larger amount of new money available to invest when stock markets are high. Exactly opposite of what you would want. Of course layoffs would be even worst.
I would think this is a common occurrence since a company's ability to provide pay and benefits is tied to their business cycle. No wonder the average retail investor is unable to match the average returns of the stock market. They will always purchase more at the top of the market and less at the bottom because that is when they have the money to purchase.
