Here is a question that could literally be worth $1 million or more to you:
“Are you receiving the full 401(k) match from your employer?”
Or 403(b), Roth-401(k), Roth-403(b), 457, SIMPLE IRE, RRSP, TFSA, CPP, or TSP match?
Regardless of your company’s retirement plan, you should KNOW that you are receiving any and all of the company’s matching contribution! The sad fact is that many people have no idea about their company’s matching. As a result, they do not receive the FREE money the company willingly matches!
Let’s say you are 30 years old and are earning $40,000 per year and contributing 3% of your income to your company retirement plan. Your company matches your contribution “dollar-for-dollar (or 100%)” up to 6% of your pay. This would mean that you would be missing out on 3% of your salary in FREE MONEY that the company would match in your retirement account.
If you received pay raises of 2% each year, the total amount of matching contributions that you would miss out on receiving would add up to $67,338! If you consider a 10% growth rate on your investment, this $67,338 would actually be worth $529,231!!!
The decision to NOT contribute enough to obtain the full company match would be worth more than HALF OF A MILLION DOLLARS!
ACTION #1:Go to your Human Resources/Benefits coordinator RIGHT NOW and ensure you are contributing enough to receive the full company match!
ACTION #2: Tell ALL of your co-workers about it and help ensure they do the same!
ACTION #3: Get FIRED UP!
You may not remember my name 35 years from now, but you will definitely have more cash in your hand if you do this!