When you’re an adult, you get to do awesome things, like occasionally eating ice cream for dinner. But with that freedom comes responsibility – paying taxes, taking out the trash, and saving for retirement. And you should save for retirement! Every ten years you wait to start can cut your potential future nest egg by half.
Like many companies, the Fool offers a 401(k) program to its employees. What’s a 401(k)? It’s an investment account that allows you to contribute to your retirement directly from your paycheck before taxes are taken out. You pay taxes once you begin taking that money out of the account after you retire. Many companies (the Fool included) will match your contributions – if you set aside a certain percentage of your salary for your retirement, your employer will kick in a matching amount. It’s free money!
So why would people choose to miss out on the employer match? Some just aren’t able to save at that moment, some never get around to filling out the paperwork, and some are so confused by 401(k)s that they put off getting started. Many companies try to counteract the confusion with thick information packets and boring annual informational meetings, but the Fool refuses to make anything boring.
Enter Robert Brokamp: Rule Your Retirement advisor, personal finance expert, and wearer of amusing Halloween costumes. Bro (as we affectionately call him) teaches a monthly 401(k) class for new employees, funny-ing up his presentation with photos from Awkward Family Photos. Thanks to our investing-minded culture, 87% of Fools contribute to a 401(k) (compared to 77% of eligible workers in the U.S.). Bro aims to increase that number of Fools and non-Fools alike by making saving for retirement simple and accessible.
What are some things your company does to teach employees about their 401(k) options?