Karl Eggerss was interviewed on CBS telling viewers the easiest way to get free money.
Sharon Ko: It’s a safe investment guaranteed to double your savings, and it’s all for free. Here’s how to get money smart for retirement. Karl, how do I get free money through my 401(k)?
Karl Eggerss: Yeah, everybody, everybody has been listening and waiting for us to talk about free money. How do you get free money? You know, a lot of folks pass up their 401(k)s and don’t contribute to them because they think, well, I’m not going to be able to see this money for a number of years until I retire at at least 59 and a half, and I may need that money now. But what they’re failing to realize is that many companies, most companies, will match your 401(k) contributions. A lot of them, local companies here in San Antonio, will match sometimes dollar for dollar, maybe even $1.50 or $1.60 on the dollar, for every dollar you put in. So if you think about that, I’ve had somebody recently tell me, “I’d rather invest in real estate.” And I said, “Well, do you have a 401(k) available?” “Yes, I do.” I ask for the details.
I said, “Where else are you going to get 100% return or 150% return on your money?” Because it is, it’s free money that you’re getting. You put in a dollar. They’re going to match it. That is a 100% return on your money. Where else are you going to get there? You’re not going to get that in real estate. You’re not going to get that in the stock market, so take advantage of that. A lot of companies nowadays, you’ll automatically be invested in their 401(k). You’ll automatically be enrolled, and it’s a great way to start from day one saving and then they will have an opt out feature. So if you want to get out of it, you can and stop contributing.
If you can’t go up to the maximum dollar amount that you can save legally, a lot of companies are putting in kind of what they would call maybe an escalator clause rule. Let’s say you start on day one and you save 1% of your paycheck, and then the next year automatically it’ll jump up to 2% of your paycheck and then 3%. Great way of doing it. It kind of eases the pain of saving a lot of money up front if you can’t afford to do it. It kind of walks you up and you get used to that lifestyle and get used to that paycheck at a certain dollar amount.