Retirement Accounts Deep Dive: free beginner lessons
Retirement Accounts Deep Dive is a FinCon topic with 4 short lessons. Master 401(k)s, IRAs, and Roth accounts to maximize your retirement savings. Each lesson takes about five minutes and ends with a quiz.
What will I learn in Retirement Accounts Deep Dive?
You will work through: 401(k) & Employer Plans, IRA vs Roth IRA, Common Retirement Mistakes, Retirement Savings Timeline.
What is in each Retirement Accounts Deep Dive lesson?
401(k) & Employer Plans
A 401(k) is a retirement account offered by your employer. 🎁 The magic: Many employers MATCH your contributions! Example: If you put in 5%, your employer adds 5% too. That's a 100% instant return on your money. ⚠️ Not taking the match = leaving free money on the table. 📊 2024 contribution limit: $23,000 (under 50) / $30,500 (50+)
The 401(k) mechanics: 💰 Money is deducted from your paycheck BEFORE taxes 📈 It grows tax-deferred (no taxes until withdrawal) 🔒 Penalty for withdrawal before age 59½ (usually 10%) 📋 You choose from a menu of investment options 🎯 Priority #1: Contribute enough to get the FULL employer match. Example: Earning $60K with 5% match: • You contribute $3,000/year • Employer adds $3,000/year • That's $6,000 growing for your future!
Why should getting the full employer 401(k) match be your top priority? Employer match is a 100% return on your contribution—you won't find that anywhere else. Always capture the full match!
Leah started her first job at 25 earning $50,000. Her employer offered a 4% 401(k) match, but Leah said "I can't afford to save right now." Her mentor showed her the math: • 4% of $50K = $2,000/year from Leah ($77/paycheck) • Employer adds $2,000/year = $4,000 total • Over 40 years at 8% growth: $1,036,000 • Without the match: only $518,000 Leah signed up that day. The $77/paycheck felt small. The million-dollar result didn't.
The employer match is the closest thing to free money you'll ever find. Even small contributions grow to huge sums thanks to compound growth.