What is the best kind of money? Free money, of course!
A matching component is where they will give you essentially free money, the match, up to a certain percent. (01:15)
Some plans might have a vesting feature or having to work there aka for a certain amount of time before you get the match. But nonetheless, a path to free money, a 100% return on what you put in. (01:52)
So for example, you are making $100,000 and your work has a 5% match. By putting in 5% of your own money, you get another free 5% from the company. (02:05)
Quote for the episode: "You are essentially doubling your money, which is not helpful if you again are wanting to avoid accumulating wealth. Now if you are wanting to try to accumulate wealth, this is obviously a great way to go about it." (01:36)
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