A buddy of mine has a similar setup. He’s one of the smart ones so he lives off of his base pay and the profit sharing goes into a brokerage account for retirement/emergencies. However, most of his coworkers live far beyond what the base pay provides and end up in a bad spot when there is a bad quarter.
This would be great if some/all of the profit sharing could go to a tax advantaged retirement account like a 401k, that would make it less likely people would count on it to live. The wealthy have ways to not count a lot of their compensation as taxable wages, the rest of us should have that too.
I mean skipping the tax man at that scale should be heavily discouraged, but putting that money into a retirement fund automatically seems like a smart way to keep people saving.
A buddy of mine has a similar setup. He’s one of the smart ones so he lives off of his base pay and the profit sharing goes into a brokerage account for retirement/emergencies. However, most of his coworkers live far beyond what the base pay provides and end up in a bad spot when there is a bad quarter.
This would be great if some/all of the profit sharing could go to a tax advantaged retirement account like a 401k, that would make it less likely people would count on it to live. The wealthy have ways to not count a lot of their compensation as taxable wages, the rest of us should have that too.
I mean skipping the tax man at that scale should be heavily discouraged, but putting that money into a retirement fund automatically seems like a smart way to keep people saving.