Should I participate in my 401(k) match?

401k match and flushing money down the toilet

Find five differences between these two panels. You can’t. Because they’re the same.

A 401(k) is a type of account offered by some employers. You put money in your 401(k) account, invest it, and it grows over time and provides a tax break. A 401(k) MATCH is an additional benefit some companies provide. If you put money in, THEY put MORE money in. If you have this benefit and you’re not using it, YOU’RE FLUSHING MONEY DOWN THE TOILET.

EVEN IF you did the worst possible thing right after, which is to immediately cash out your 401k, incurring taxes and penalties on the whole amount, it would STILL be a good idea to take the match because you’d end up with more money!

So don’t wait. Go sign up for your 401(k) and at least contribute enough to get the full company match. If you don’t, you’re flushing money down the toilet.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.


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