Your company is literally handing you cash, and you’re walking away. If you’re not maxing out your 401(k) match, you’re leaving free money on the table — and we’re talking serious cash here.

The Match: Your Easiest Investment Win Ever

Here’s the math that should make you sprint to HR: Let’s say you make $60,000 and your company matches 50% up to 6% of your salary. That’s $1,800 in free money every year just for contributing $3,600.

That’s an instant 50% return on your investment. Where else can you get guaranteed 50% returns? Nowhere legal, that’s where.

Over 30 years, assuming 7% annual returns, that extra $1,800 becomes roughly $170,000. All because you decided to take free money instead of leaving it behind.

Vesting: When “Free” Money Actually Becomes Yours

Plot twist — that match isn’t technically yours until you’re “vested.” Companies use vesting schedules to keep you around longer (sneaky, but fair).

Common vesting schedules look like this:

• Immediate: It’s yours right away (jackpot)
• Cliff vesting: 0% until year 3, then 100% (all or nothing)
• Graded vesting: 20% each year until you hit 100% at year 5

Check your plan documents or ask HR. If you’re planning to job-hop before you’re fully vested, factor this into your timing. Sometimes staying an extra few months can literally be worth tens of thousands.

Target Date Funds vs. DIY: The Great Debate That Doesn’t Matter

Here’s what keeps people up at night: “Should I pick a target date fund or build my own portfolio?” The honest answer? It matters way less than you think.

Target date funds automatically adjust your risk as you age — more stocks when you’re young, more bonds as you approach retirement. They’re not perfect, but they’re pretty good. And “pretty good” beats “perfect portfolio I never actually implement.”

If you want to DIY, a simple three-fund portfolio works: total stock market index, international stock index, and bond index. But honestly? The target date fund is fine. Your future self cares more about you actually contributing than whether you picked the “optimal” allocation.

The $100K+ Move You Can Make Right Now

Want to add six figures to your retirement without breaking a sweat? Increase your contribution by 1% every year.

Start with whatever gets you the full match, then bump it up 1% annually. Most people don’t even notice the difference in their paycheck (thanks, lifestyle inflation), but the compound growth is massive.

A 25-year-old making $50,000 who starts at 6% and increases by 1% yearly will have roughly $1.2 million at retirement. Someone who stays at 6% forever? About $850,000. That 1% annual increase just bought them a $350,000 upgrade.

Your Move

Stop overthinking this. Log into your 401(k) account today and do these three things:

• Contribute at least enough to get the full company match
• Set up automatic 1% increases every year
• Pick a target date fund if you haven’t already

Your 65-year-old self is counting on you to stop leaving money on the table. Don’t let them down.