Perk Performance

Keep feeding the 401(k). That's hard, when you've already lost the money you put into it this year, concedes Michael Smith, an Atlanta financial planner. But it's the only way to recoup losses and keep your retirement on track. For 2009, you can contribute as much as $16,500 into your 401(k)—$22,000 if you're 50 and older. Bump up your contributions as much as possible. Make sure you're putting that cash into diversified investments and curtail its dependence on your company stock.

Use Roth benefits, too. Smith and his wife, planner Elizabeth Jetton, split their retirement savings between a tax-deferred 401(k) and a tax-free Roth retirement plan. Contributions to the Roth don't get a tax deduction going in, but withdrawals from them in the future are tax free, so the money earned in the account will never be taxed. That will come in handy in retirement, when the couple will be able to withdraw a mix of taxable and nontaxable dollars to fund their expenses.

Comparison shop privately for all of your insurance, just to see what ' s out there. As employers transfer more of the health-care benefits cost to their workers, the spread between privately offered insurance and group plans starts to shrink. If you're a young, healthy family, check out competitive plans at ehealthinsurance.com, just to make sure your employer's plan offers you the best deal. Similarly, shop privately just to get quotes on disability and long-term care insurance before you sign onto your company's plan, suggests Smith. As for life insurance, employer-provided group plans usually are very inexpensive, but not adequate. And because you would lose that coverage if you lost your job or changed jobs, it's best to those with dependents to buy life insurance on their own, he says.

Take all the freebies you can get. The one place companies are adding money to their benefit plans are in fitness and preventive health, according to Watson Wyatt Worldwide. That means they'll shell out for everything from gym memberships to smoking-cessation programs to discounts on massage therapy and acupuncture. In addition, many large companies offer education benefits, match charitable gifts and negotiate discounts for their employees; they may cover car rentals, admission to local cultural events or even airline tickets. Study the whole list, use what you can, and don't be shy about asking the human-resources department for a discount you don't see on the list. Negotiating for a deal with a local retailer is one way your company can put money in your pocket without actually spending any.

© 2008