The Ultimate Guide to Understanding and Utilizing Your 401K | Ep. 292

• Tiffany explains how a conversation with a phlebotomist during a medical appointment led to this 401(k) discussion, and apologizes for audio issues in the previous episode.

• Employee benefits including 401(k) matches are part of your total compensation package. Not taking advantage means leaving money on the table.

If you don't take advantage of benefits, then you're kind of leaving part of your compensation package on the table.

• Explains how matching works with the example of 50% match up to 6% of income, showing that on a $100,000 salary, contributing $6,000 gets a $3,000 employer contribution.

A lot of the people that I know that are millionaires got there from their 401ks, honestly.

• Vesting only affects employer contributions, not your own money. Provides example of 25% by year 3, 50% by year 5, 100% by year 6 vesting schedule.

They're not taking your money that you put in. They're taking their money that they put in.

• After leaving a company, fees may increase and investment options are limited. Rolling over to an IRA provides access to the full market and prevents forgotten accounts.

When you leave the company, your management fees may go up.

• Emphasizes requesting a direct transfer rollover to avoid taxes and penalties. Never accept a check made out to you personally.

• High earners might benefit from leaving 401(k)s with previous employers to enable backdoor Roth IRA strategies later.