Tue Apr 29 2025, by Tyler Gardner
The Cost of Not Contributing to Your 401k
I don't know who needs to hear this right now, but if you make $75,000 a year and for some reason have decided not to contribute to your 401k, even though you've got a 4% company match, here's what you're missing out on. If any of this is helpful, sign up for my free newsletter by clicking the link in my bio.
1. Over 10 Years
You're missing out on $41,000 of free money.
2. Over 20 Years
You're missing out on $122,000 of free money.
3. Over 30 Years
You're missing out on $283,000 of free money.
4. Over 40 Years
You're missing out on $598,000 of free money.
Conclusion
None of that's including your own contributions. Add that in, and you would have had around $1.2 million in 40 years of investing. I get it—some people don't like free money. Well, maybe I don't get it. Let me know in the comments if you don't contribute to a 401k and why.
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