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Lesko: Are You Saying No to Free Money?

By Fox 40 Staff.
Jason: Would you say "no" to free money? Greg Lesko of Lesko Financial says a lot of people are doing just that. Greg.

Greg: Thanks, Jason. When you hear "free money," you probably think "there's got to be a catch." But what we're talking about here--really is free.
It's money for retirement offered to millions of Americans who choose to turn it down.

A study of four-and-a- half million U.S. workers showed that large numbers are not taking advantage of their employers' matching contributions to their 401k retirement savings plans. That amounts to saying "no" to a collective total of 24 billion dollars each year.

Jason: That seems like an unbelievably high amount.

Greg: The study said one out of four employees fails to take full advantage of their employer match, averaging to about $1,300 per employee each year.
That could be low, because it didn't include workers who contributed nothing to their plans.

To summarize how this works, at many companies, the employer agrees to match a worker's contribution--dollar-for-dollar--up to a certain percent.
This is the money millions of workers are turning down.

Jason: So, your advice would be to start saying "yes."

Greg: Exactly. The first step is to explore your company's retirement plan-- especially what kind of match you can get to your contributions. Then, find a way to contribute enough to get the maximum match each year.

Even if you have to sacrifice something else in your budget, it will be more than worth it. Find an online compound interest calculator...and when you see how much that yearly savings could grow over time, you'll probably agree that passing up free money is a foolish decision.