401k employer match
The media focuses on the stock market and personal finance a great deal. A lot of attention is paid to how the stock market, real estate market, and economy is doing. And rightfully so. However the “little things” that can make a huge difference in an investors portfolio are being overlooked.
Many, perhaps even most, employers offer to match a certain percentage of investments put into a 401k. The match can be as little as one percentage or as high as 10 but the match is usually going to range from 3-5%.
If you did not already know, an employer match on your 401k simply means that for every dollar you put towards your 401k your employer will also contribute a dollar.
A match up to 3% may not sound like much but it can make a huge deal. Lets pretend that you make 50,000 dollars a year, an average salary. You contribute 15% of your salary into your portfolio and your employer matches you up to 3%. This is an instant 3% raise. Most people would be ecstatic if they got 1500 dollars free each year for doing nothing! However millions of workers ignore the 401k employer match or investing altogether which is a huge mistake.
A 3% match on your investment can make a bad year for the stock market and your investments turn positive. It can make a good year great. These days you have to take advantage of every thing that you can and an employer match is a prime example.