Missing the Match | Series 9.2

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Welcome to the Enjoy More 30s Family Finance

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podcast. The only podcast dedicated to making life more

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enjoyable for young families by hitting on the financial topics

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that tend to weigh on us, stress us out, and distract our focus

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from simply enjoying life.

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Hello, and welcome once again to the Enjoy More 30s

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Family Finance podcast. For all those people out there trying to

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avoid being financially secure, we have our series 10 Ways to

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Not Be a Millionaire. Now if you actually do want to be a

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millionaire, not to worry, this series isn't just for those

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people who are looking for financial instability. If you

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avoid doing these 10 things, then you could be well on your

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way to millionairehood as well. Each week I'll share a quick

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step in this how to not be a millionaire process. So you know

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what to do or hopefully what to avoid at all costs.

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As always, before I begin, please share and like please

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leave reviews, I'd love to reach and help as many young families

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out there just like you.

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Today's great tip on how to not be a millionaire is by Missing

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the Match. Most people out there have a retirement plan at work.

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Most of these plans likewise have a matching component. What

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is a matching component you may ask. A matching component is

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where they will give you essentially free money, the

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match, up to a certain percent. So if the match is 4%, then if

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you put in 4% of your own salary, they will give you a

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free 4%. So if you want to not be a millionaire, this is

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certainly something that you are going to want to be avoiding.

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You are essentially instantly doubling your money, which is

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not helpful if you again are wanting to avoid accumulating

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wealth. Now if you are wanting to try to accumulate wealth,

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this is obviously a great way to go about it. What is the best

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kind of money? Well, free money of course! Some plans might have

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a vesting feature or having to work there aka for a certain

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amount of time before you get the match. But nonetheless, a

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path to free money, a 100% return on what you put in. So

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for example, you are making $100,000 and your work has a 5%

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match. By putting in 5% of your own money, you get another free

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5% from the company. So essentially an equivalent to 10%

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of your salary every year is going into your plan. In 30

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years at 7% you wind up at $1 million. If you are trying to

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not be a millionaire, this is obviously something you'd want

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to avoid. Saving somewhere else and not getting the match means

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you would only get the 5% you put in no free money whatsoever.

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So after the same 30 years at 7% growth, you only end up around

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$500,000...much, much, much less. Overall I think it is more

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than clear that missing the match is a fantastic way to not

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be a millionaire.

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Thanks for tuning in today and join us for next week's episode

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on how to not be a millionaire, Rushing Past the Roth. As

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always, please remember to review and share for others and

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if you need any help, don't hesitate in reaching out. I

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probably have helped someone just like you. Until next week.

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Thanks for joining me today and I look forward to connecting

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with you again soon.

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The conversations on this show are

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Joe's opinions and provided for general information purposes

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only. They do not constitute accounting, legal, tax, or other

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

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accountant, lawyer, or other professional before acting upon

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any content or information found here first. Joe is affiliated

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with New Horizons Wealth Management LLC, a branch office

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of TFS Securities, Inc., and TFS Advisory Services an SEC

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Registered Investment Advisor, Member FINRA/SIPC.