[Music] all right, we do have another question from Dylan. Ready for it? Yes, ma'am. It says, How do I approach the employer match step on the financial order of operations when it's a percentage of what I contribute up to the legal max? So, for example, if he puts in $1, they put in $0.25. And it sounds like he can put as much as he wants. So, you say, 'You know, step two of financial order of operations is get that employer match up to as much as they're going to match.' So, how would you handle that? Yeah, we have seen in very limited circumstances someone who has an employer match that is just like egregiously generous. And it sounds like if you are in that situation and every dollar you put in gets a 25% match and you can do that all the way up to the salary deferral limits, it's going to be really hard. I'm just kind of thinking through this practice. It's going to be really hard in my mind to not take advantage of doing the full

23,000. I've seen I and getting all of it, but here's the thing. I want to make sure I play the other side on this more balanced. Is that I have had a neighbor who came to me, and when I first heard the match percentage, I was like, Whoa, that's incredible. But then you see that they capped it once you reach 6% of your pay, and you're like, Okay, so they really are not giving you that much money. They're really giving you 2%. But for the... you look at the way the funding formula works, but let's assume that Dylan has it right, and there's not a cap. It really is up to the 23, you know, you can salary deferral 23,000, or if you're over 50, you can do 30,500, or, uh, yeah, that's right. If that's where you are, do you stay in step two to go all the way up to 23,000, or do you forego it? Because I'm kind of like, I

love that free money, and I love that employer match. And I think you have to get especially if you're someone who's young, and you're not nearing retirement, and you're not at someone who's think, Okay, I really need to figure out how I'm going to have my bridge account, and how I'm going to do step seven. Because one of the beautiful things about 401ks is, is inside of your 401k, most plans now have both a pre-tax deferral option as well as a Roth deferral option. So even if you're deferring into the Roth portion of your 401k, you're still able to get that employer match. You're kind of doing a step two plus a little bit of step five in there. And for those who aren't aware, if you go to money.com resource, we actually have your free download of the financial order of operations. And what really the crux of what Dylan is asking is that step one is highest deductible cover. This is to keep your financial life out of the

ditch from an emergency and having keeping you from making a desperate decision. Step two, this is blows up a lot of other systems that are out there, is because we realize a lot of employers give you a dollar Ford dooll match or at least 50 cents on the dollar, and that's a 50% or 100% guaranteed rate of return. It's kind of hard to walk away from that free money, so that's why it's step number two, and that leads to step three, your high-interest debt. Now, the first high-interest debt that most people think about is like credit card debt, and here's where I want to get to the nuance of Dylan, is that it's not uncommon with interest rates being higher right now that you could potentially have a 27% credit card rate. Well, if your employer is only offering you a match percentage that gets you to 25%, I do think you have now gone outside of the intent of what because I want this employer match has to be such an exceeding.

benefit to you that you are doing this before you pay off that 27 to 30% credit card debt. That's easy when it's dollar for dollar matching or 50 cents on the dollar. When you get into these nuance things that say, Hey, we're going to give you 20% up to a certain dollar amount or percent, then I think you have to do the math, and I hate that because I've tried to create a system that makes it as math as possible. But you do need to kind of, when you get into these little gray zones, know what the intent, know what the context was with the design so you can make sure you maximize every opportunity you have in your financial life. Two things I'd ask you to do, Dylan. Number one, if you're not subscribed, make sure you subscribe right now. Stay updated to all of the information we put out there. And number two, if you've not checked out our wealth multiplier, you should go to money.com resources in your age with the employer.

match. You have access to plug, plug in your contribution, plus your employer's contribution, and see what every one of those dollars can turn into by the time you get to 65. And I think that it will blow your mind. We love employer matching. We love watching that money multiply through time. Yeah. And look, we've reacted to some content out there where an employer was so generous where potentially you put in 5%, and then if you add your contribution plus what the employer's putting in, it would equal 15%. Y. And there's other people out there who will say, Hey, pay off all your student loan debt, pay off all this debt before you get that employer match. And the purpose of them deferring it for you is sometimes to say, So you'll be that laser focus on paying off the debt. My concern is because the example I'd heard presented was it was somebody who was going to take five to six years if you had to pay off $440,000, $50,000 a student.

loan debt. You really could lose five to six years' worth of time, and that's how valuable, especially think about for a 20-year-old, a 22-year-old, a 23-year-old when you right graduate college. Yes, you have student loan debt, but it's at a much lower interest rate. Don't miss out on this once-in-a-lifetime. There's a reason it's step number two is because it's a banger. I mean, if your employer is offering you 50 cents on the dollar or dollar for dollar, get in there, maximize that, because that's where wealth is made.

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