If your employer offers a match to your 401k/403b or equivalent, you should be taking advantage of this FREE MONEY.
Imagine you are playing the game of roulette at a casino that is guaranteed to land on black every time. Would you place a bet on black?
I don’t know about you, but I would bet on black and double my money every time.
Contributing to your retirement account to at least get the full employer match is like betting on roulette and winning every time.
For example, if you make $1,000 per pay period and the employer match is 3%, if you contribute 3%- you instantly double your money to $60 ($30+$30).
The employer match is the same as an instant 100% gain on your investment.
Depending on your employer, you will have a different match available. Some employers may offer 3% match if you put in 6%, or anywhere in the range of 1-10% match, and some do not offer a match.
Employer match is part of your compensation and not taking advantage of it is like shredding part of your paycheck.
My employer does not offer a match, however they provide a generous profit sharing of 8% of my yearly salary once a year as a lump sum (and I don’t have to contribute anything to receive this). My wife’s employer provides a 4% match into her 403(b). In total, our employer contributions are about $11k/year.