[Cody]

Would you say “no thanks” to extra weeks of paid time off?
That’s what happens when someone doesn’t contribute enough to a 401(k) to receive the full employer match.
It’s time, not just money!

I assume this isn’t a new concept for many community, but we’re all learning something.

I missed out on the match for over 5 years.

[Allison]

Ah, you young’uns are so spoiled with your fancy Employer Matches! Back in my day, our employers just said we should be happy to be employed and didn’t match bubkes!

[Cara]

It’s free money, yes, but it’s also a tax write off for the employer which is why it’s pushed so hard onto everyone.

I personally have never seen the returns I was promised from my 401k and I’ve been contributing to get the match since I was 18.

[Bryan]

I am fortunate to work at a company that does a 10% match and provides 6 weeks of vacation.

[Kamber]

Sorry if I’m being dense, but for the years of pay in retirement portion, is that how many years of pay in retirement if that is the amount they match for 25 years?

[Rosemarie]

Why would you compare weeks of pay as a cost to year of pay as a return? Shouldn’t they both be weeks?

[David]

I was in HR the last few years before early retirement.
Our employee profile data showed me the % of employee 401K contribution.

I was shocked at the number of people not contributing at least up to the match.

Many were formally direct employees of mine that had heard the FI and Ramsey talk from me over the years.

It was especially rare to find anyone contributing even up to 10%.

Meanwhile, the person across from me, contributing just 4% was often excited to show me his new sneakers.

He collected high end shoes and had more than a hundred pairs. He also wore expensive clothes and went out to lunch everyday.

Meanwhile, I was there in my 10 year old shirt eating a sack lunch.

Of course, this is part of why after both being laid off I was able to retire early and he is still working.

[Author]

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