So your boss is going to cut year end bonuses this year. However the company will match more contributions to the company 401k. It is actually a ‘stealth raise’ that you should take advantage of. If your company matches 15% of the first 5% of salary you contribute and that 5% is about $4,000, your employer is giving you $600 a year in retirement contributions; 15% return on your money (plus whatever it makes from investing) is a pretty good deal. Sometimes there is an even bigger match – check with your employer. Over time this is probably a better deal than the additional bonus (although you have no choice in the matter.) Plus you get a tax deduction for the contribution you make. So it may actually be a good thing to get a smaller bonus (although your wife and kids may not think so, but you can always explain it to them.)

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