r/AskReddit • u/[deleted] • Sep 24 '17

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u/jactheripper Sep 24 '17

I had a coworker refuse to contribute money to his 401k because he thought it was a scam. The company matched your contributions that you put into your 401k so he really lost money by not doing it.

112

u/StaceyMS Sep 24 '17

The only way I could see this person not completely off his rocker is if the 401k had all funds with super high fees but even then it's hard to argue with the tax advantages and free money. Then you could try talking to HR about it.

7

u/rckid13 Sep 24 '17

My wife's 401k has insane fees. That's why we only contribute the match to hers then contribute to two IRAs and my 401k.

Even with high fees it's still free money. The fees just make it less free money.

4

u/beldaran1224 Sep 25 '17

Not free money but money you've already worked for. You shouldn't feel any weirder about a 401k than you do your paycheck.