[Music] All right, Troy's question is up next. He says, I just started a job that offers a 10% match, which is great, but I am not 100% vested for 3 years, and it's 0% before that three-year mark. Would the guys count this toward my savings rate? A lot could happen taking me elsewhere before vesting. That's a great question. That's a great question, and I want to remind you of something because a lot of people don't realize this. When you participate in an employer-sponsored plan, the money that you put into it is always 100% vested. Your money is always yours. So if you put it in today, you change jobs, you leave tomorrow, you get to take that with you. It's only the employer money that could have a vesting schedule, and it sounds like yours has a three-year cliff. You've got to be there for 3 years in order to unlock all 100% of it. So I am of the opinion that in step two

br will you hold that thing up for me can you do that there it is step two of the financial order of operations is free money if you're getting a 10% match that is free money even though it has a vesting schedule associated with it I think you still got to take advantage of it you got to go out there and grab it and then hopefully you're going to be at this job for at least three years and then you're 100% invested and Bob's your uncle you now have that money worst case scenario you end up leaving ins inside of that three-year period and you forfeit all of those matching dollars you still have all those contributions that you put in that you can take with you so I would not let the vesting deter me from still participating in the retirement plan yeah I would use it more as gauging on your savings rate where you are because remember just guidance when we talk about saving and investing 20 to 25% we do allow you to include

your employer match if your household income is under $200,000. This would probably be an aster moment where I give a little clarifier on this. Is that definitely you're counting the 10% you put in CU as Bose says that is your money even if you leave the company but on a cliff vesting. Because that is kind of an aggressive thing but they did it this aggressively because they're so generous that they're trying to use this as a essentially a handcuff to keep you working at this employment. This is to incentivize you not to leave because I think with a lot of employers they've gotten so used to people doing turnover. You know you work for a place for 18 months, 20, 24 months and then you leave move on. This employer has got a very generous benefit with a three-year Cliff with the thought that hey if we put this out there this person will less likely want to leave within that first three years plan accordingly so I'd.

probably count the 10%. You're putting in as part of my 20-25%. But then I would wait until I was three years in before I could really fully count it because I you just don't want to undersave because you're thinking and only counting that employer match to get you to the 20%. When there's a good chance in that first three years if you choose to leave or if there's some actionable reason they decide you no longer need to be employed that it would derail your financial situation because those first few years we're trying to get you to the bowling Point as fast as possible get to that first 100,000 get your army of dollar bills getting to that escape velocity of critical mass where your money starts working harder than you can with your back your brain and your hands.

Count 10% Employer Match Toward Savings if Not Vested for 3 Years?

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