401 K free money?
I've heard him twice refer to 401K payments to employee accounts as
'free money.' He's not the only one, but he's one I've noticed.
Everytime I hear that, I'm troubled because it is not really free
money. It is money that a company agrees to pay employees as part of
a retirement plan, much like they used to give in benefits for a
It's money that is earned by one's employment.
Now, I understand what they are saying, by when you refuse that
money, it is like throwing away part of your paycheck. It's a small
point, but it's not leaving free money on the table; it's dropping
earned income into the gutter -- when one decides not to let an
employer contribute to one's 401K.