@finnythemoneyguy: Your company calls it “free money.” But the 401(k) match has fine print most people never read. Here’s what’s actually happening: • 401(k)s were built as a tax loophole for high-income execs, not 22-year-olds starting out • Companies dumped pensions, pushed risk + fees onto you, and called it a “benefit” • High fees (1–1.5%) quietly siphon tens of thousands over 20–30 years • Vesting schedules mean you often have to stay 3–5 years just to keep the “match” • Average young worker changes jobs every ~3 years… so a lot of that “free money” never becomes yours I’m not saying “never use your 401(k).” I’m saying: understand the game before you play it. Order of operations I like to think about: 1️⃣ Grab the true free money first (up to the match) 2️⃣ Then build your own plan: Roth IRA + low-fee index funds (<0.1% fees) 3️⃣ Keep an eye on your expense ratios and vesting schedule If you do nothing, the system quietly wins. If you understand it, you can use it without getting used by it. Master your 401K 👉 Check your 401(k) fee ratio and vesting terms tonight. I’m building an app to answer all your finance problems/questions, launching early access soon! Check out our bio 🔗 #financialliteracy #financialtips #investments #retirement #wealthcreation

Finny | Money Therapist

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Friday 14 November 2025 00:36:24 GMT