Money Milestones

  Would you walk away from $1,300 of free money each year? . Nearly 30% of employees do without realizing it, it the costliest unforced error in early career finance.  While Gen Z has successfully pushed for new benefits like mental health days, the fundamental, long-term financial perks remain the least understood and the most valuable. This lack of financial literacy means thousands of dollars in free retirement money is left on the table every payday. Employer Matching: The Greatest Instant ROI Employer Matching is when the company (your employer) contributes to your 401(k)-retirement account based on your own contribution which is typically up to 3-6% of your salary. The most common structure is 50% of what you contribute, up to 6% of your pay. For example, if you earn $60,000/year and contribute 6% i.e. $3,600 then your employer would add 50% of that i.e. $1800, totaling $5400 going into your retirement for that year. It is essential to understand the impor...

If you delay starting your 401(k) by just 10 years (from age 25 to 35), you will lose over $140,000 in retirement value. This isn't a theory; it's the cost of lost compounding time. What Is A 401(k)? 401(k) is an employer-sponsored retirement savings plan that allows you to contribute a portion of your paycheck. This money is invested and grows tax-advantaged. A 401(k) can either be:   Traditional : Consists of pre-tax contributions (taxes paid later when you withdraw from this account)   Roth : Consists of after-tax contributions (tax-free withdrawals). How It Works:  Following are the key steps you need to know to understand how a 401(k) account works: First, you set a contribution rate (usually a percentage of your salary) which is automatically deducted from your paycheck. Some companies offer an employer match, this is essentially free money added to your account (read our blog on employer matching to understand this)/insert link. Next, the contribu...