3. Contribute to Your 401(k) Up to the Employer Match

It’s essentially free money and a guaranteed return on your investment.

• Immediate 50%-100% return on your investment depending on how much the company matches the contribution.
• Reduces taxable income.
• Builds long-term wealth through compound growth.

Examples

Microsoft

Microsoft matches 50% of your 401(k) contributions, up to the federal limit. Then you should contribute $23,500 which is the federal limit.

Amazon

Amazon matches 50% of your 401(k) contributionss, up to the first 4% of salary contributed. Then you should contribute:

$ annual salary * 4%

For example, if your salary is $100,000, then you should prioritize contributing $4000 which is the 4% of your salary.

Meta

Meta matches 100% of your 401(k) contributions, up to the federal limit, so you should contribute $23,500 which is the federal limit.

Google

Google matches 50% of your 401(k) contributions, up to the federal limit. You should contribute $23,500 which is the federal limit.

What assets to contribute to

Pick low cost, tax efficinet index funds or target-date funds.