WEBVTT - Employer Benefits You're Missing Out On #326 0:00:00.160 --> 0:00:03.040 Welcome to How the Money. I'm Joel and I and Matt. 0:00:03.279 --> 0:00:25.880 Today we're discussing your employer benefits you're missing out on. Dude. 0:00:25.880 --> 0:00:27.840 It makes me think back to my first job when 0:00:27.880 --> 0:00:30.360 I was working at the local golf course there in Augusta, 0:00:30.760 --> 0:00:35.280 not the Augusta National less prestigious golf course, but man, 0:00:36.120 --> 0:00:38.360 to see the numbers that were coming out of my 0:00:38.479 --> 0:00:40.839 pay I was like, how come I'm not getting the 0:00:40.880 --> 0:00:43.640 amount that I'm supposed to receive. In that case, I 0:00:43.680 --> 0:00:46.680 wasn't receiving benefits. It was all taxes. But there are 0:00:46.800 --> 0:00:50.720 a lot of benefits that sometimes are deductive from our paychecks. 0:00:50.760 --> 0:00:52.640 And that's what we're gonna focus on today. Not all 0:00:52.720 --> 0:00:55.000 benefits that you might receive from your employer are deducted 0:00:55.040 --> 0:00:57.960 from your paycheck, but about half the ones we're gonna 0:00:57.960 --> 0:01:00.480 talk about today are, and about half of them aren't. 0:01:00.720 --> 0:01:03.280 I'm excited to talk about this today with you, my friend. Yeah, 0:01:03.360 --> 0:01:05.520 let's talk about something that we're not deducted from your paycheck. 0:01:05.560 --> 0:01:07.760 Probably back then, I'm sure you got to hit the 0:01:07.760 --> 0:01:10.080 golf ball some like, you know, for free. I'm sure 0:01:10.080 --> 0:01:12.400 you got some free food from the clubhouse on occasion 0:01:12.400 --> 0:01:14.600 pretty much anytime we wanted, probably got to act like 0:01:14.640 --> 0:01:16.959 a madman in the golf cards and driving around the 0:01:17.000 --> 0:01:20.440 golf course, and unlimited range tokens as well. You can 0:01:20.480 --> 0:01:22.440 just go by, grab some of those range tokens, head 0:01:22.440 --> 0:01:24.920 over to the driving range, smash a bucket of balls 0:01:24.920 --> 0:01:26.360 if you wanted to. It was a lot of fun 0:01:26.400 --> 0:01:28.400 back the day. Those are the important kind of things 0:01:28.920 --> 0:01:31.000 that to take note of when you're especially when you're 0:01:31.000 --> 0:01:34.600 talking about a teenage job. Oh, certainly meaningful as a kid. Yeah, sure, 0:01:34.640 --> 0:01:37.200 those secondary benefits really do pay off in a big way, like, 0:01:37.240 --> 0:01:38.920 oh cool, let's stay for an extra hour and hit 0:01:38.959 --> 0:01:42.000 some balls on the range for free. But yeah, real quick, 0:01:42.000 --> 0:01:44.800 before we get to our topic. Um, there's this game 0:01:44.880 --> 0:01:48.559 I stumbled upon called Money Habitudes, and it's a game 0:01:48.640 --> 0:01:51.400 that apparently is supposed to help you talk about money, 0:01:51.520 --> 0:01:53.560 And yeah, I was just wondering, like, you got a 0:01:53.600 --> 0:01:55.160 chance to take a look at it too, What are 0:01:55.160 --> 0:01:57.400 your thoughts that? Don you think? You and I are 0:01:57.440 --> 0:02:00.200 big fans of encouraging people to start money conversation sas, 0:02:00.200 --> 0:02:01.560 and we know that it can be hard. You don't 0:02:01.560 --> 0:02:03.520 want to necessarily just go out there and be like, hey, 0:02:03.520 --> 0:02:05.280 how much money do you make every year? You know, 0:02:05.280 --> 0:02:07.120 it's like a bad question to get the ball rolling, 0:02:07.360 --> 0:02:09.880 but you know there are it's a bit abrasive, right exactly, 0:02:10.080 --> 0:02:12.640 peper to ask it like that? Well whoa slow down? Um, 0:02:12.680 --> 0:02:14.919 But there's obviously some some good that comes from opening 0:02:14.960 --> 0:02:17.040 up the lines of money communication. And yeah, I was 0:02:17.080 --> 0:02:18.919 wondering do you think a game can be helpful on that? Well, 0:02:18.960 --> 0:02:21.600 so I do like it because it provides a format 0:02:21.680 --> 0:02:24.760 or a framework to have these conversations in right, the 0:02:24.800 --> 0:02:28.560 actual So it's like a deck of cards almost uh uh, 0:02:28.680 --> 0:02:31.639 this habitudes money habitudes like cards against humanity, but for 0:02:31.760 --> 0:02:36.560 money and way safer, way less offensive. And honestly, on 0:02:36.600 --> 0:02:38.120 the face of it, it's a little cheesy, you know, 0:02:38.200 --> 0:02:39.640 like I was reading some of the cards and some 0:02:39.680 --> 0:02:42.640 of the prompts. Really it's a bit lame. But the 0:02:42.639 --> 0:02:44.280 thing is it doesn't have to be the coolest thing ever. 0:02:44.400 --> 0:02:46.360 Like the whole point is to get the ball rolling, 0:02:46.400 --> 0:02:49.000 to get these conversations started. And you know that there's 0:02:49.040 --> 0:02:50.960 a deck of cards, and you know, and you can 0:02:50.960 --> 0:02:52.519 play it with somebody else too, Like that's the whole 0:02:52.520 --> 0:02:54.360 point is that, Like, in particular, if you have a 0:02:54.360 --> 0:02:56.760 significant other, you sit down together and you can flip 0:02:56.760 --> 0:02:59.760 through these and essentially you identify with you know, what 0:02:59.840 --> 0:03:01.880 it's saying on the card. You either say, oh, that's 0:03:01.919 --> 0:03:05.320 totally me, or that's me sometimes or that's never me. Uh. 0:03:05.360 --> 0:03:07.560 And so it's a good way to talk with you know, 0:03:07.600 --> 0:03:10.320 a partner about money, but you can also do it 0:03:10.360 --> 0:03:12.040 by yourself. And so I think it could be a 0:03:12.080 --> 0:03:14.400 good thought exercise if these are things that you haven't 0:03:14.440 --> 0:03:17.480 really thought all the way through. Maybe you listen to 0:03:17.480 --> 0:03:19.560 the podcast, but maybe you're wanting to see where you 0:03:19.639 --> 0:03:21.800 stand when it comes to some of these other areas 0:03:22.000 --> 0:03:23.920 that maybe we haven't even talked about. It makes me 0:03:23.960 --> 0:03:26.440 think about, like I think my girls when they got 0:03:26.520 --> 0:03:28.200 a kid's meal at Chick fil A. One of the 0:03:28.240 --> 0:03:30.600 things that came in it was some cards that would 0:03:30.600 --> 0:03:33.280 help facilitate like dinner discussion. And some of those are 0:03:33.400 --> 0:03:37.200 kind of lame too, but actually ultimately they're pretty fun 0:03:37.400 --> 0:03:38.760 um at the end of the day, even though they're 0:03:38.800 --> 0:03:40.640 kind of like maybe maybe it's a lame question on 0:03:40.680 --> 0:03:42.920 the face. On its face, it seems lame, but if 0:03:42.960 --> 0:03:44.320 we have a good time with it, you know, that's 0:03:44.360 --> 0:03:46.520 exactly so it all depends on what you do with it. 0:03:46.600 --> 0:03:48.600 Like I could totally see like maybe a set of 0:03:48.600 --> 0:03:50.440 these cards like at a brewery or something like that, 0:03:50.640 --> 0:03:52.119 like a coffee shop. If it was sitting there, I'd 0:03:52.120 --> 0:03:53.480 be like, oh, what's that? And you pick it up 0:03:53.800 --> 0:03:55.120 and kind of flip through it like you would flip 0:03:55.120 --> 0:03:57.480 through a magazine maybe, but instead of just chatting about 0:03:57.520 --> 0:03:59.800 whatever you're seeing in the book or the magazine. And 0:04:00.000 --> 0:04:01.839 people aren't really doing that anymore, right, Like, no one's 0:04:01.840 --> 0:04:03.480 really going into a coffee shop and sitting there and 0:04:03.560 --> 0:04:05.920 like it's been a while reading a book at person. 0:04:06.160 --> 0:04:08.240 But I can first see into the future maybe sometime 0:04:08.280 --> 0:04:10.160 this summer doing that, and that would be a lot 0:04:10.200 --> 0:04:11.480 of fun out of brewery, be like, oh, what do 0:04:11.480 --> 0:04:13.840 you think about you know X? Like like or how 0:04:13.840 --> 0:04:15.720 would you respond to this money situation? It's kind of 0:04:15.760 --> 0:04:17.280 like what we do here on the show. Yeah, yeah, 0:04:17.320 --> 0:04:18.839 I like that, So I we'll put a link to 0:04:19.120 --> 0:04:21.800 that game in the show notes if you're interested, And again, 0:04:21.800 --> 0:04:23.120 you've got to kind of go into it with your 0:04:23.120 --> 0:04:25.359 own flare because it's not gonna provide much of that 0:04:25.400 --> 0:04:27.640 on its own. Yeah, this isn't a full on endorsement, 0:04:27.839 --> 0:04:30.440 but I gave. But if you do try it, let 0:04:30.560 --> 0:04:32.320 us know how it is, because I haven't actually tried it, 0:04:32.400 --> 0:04:34.200 or even if you have it, maybe you already have 0:04:34.240 --> 0:04:35.920 it at your house. Yeah, that could be pretty cool 0:04:35.920 --> 0:04:39.040 to hear from somebody who has used it, totally. Alright, Well, Matt, 0:04:39.080 --> 0:04:40.400 let's mention the beer that we're having on the show. 0:04:40.400 --> 0:04:43.359 This one's called Cocoa Bunny. It's by Creature Comforts Awesome 0:04:43.400 --> 0:04:46.640 Brewery out of Athens, Georgia, and this is a milk porter. 0:04:46.960 --> 0:04:48.840 So looking forward to having this one on the show 0:04:48.880 --> 0:04:51.120 with you today, my friend. Yeah, that's right. And also 0:04:51.240 --> 0:04:53.640 before we launch into things, I'm just gonna say real quick, 0:04:53.680 --> 0:04:57.160 there's chainsaws going on outside outside our studio here to 0:04:57.240 --> 0:04:59.360 palatial How To Money Studio. Yeah yeah, and I don't 0:04:59.400 --> 0:05:02.280 think people gonna hear them, but just in case you can. Yeah, 0:05:02.440 --> 0:05:04.560 it's actually here on the recording, and it's not happening 0:05:04.560 --> 0:05:07.640 there in your neighbors. Yeah, it's it's it's happening where 0:05:07.680 --> 0:05:09.080 we are, all right. Yeah, Well, let's get onto the 0:05:09.080 --> 0:05:11.320 subject to hand. We're talking about employer benefits that you're 0:05:11.360 --> 0:05:14.160 missing out on. Matt. I recently mentioned on the show 0:05:14.200 --> 0:05:16.440 that I just left my job to become a full 0:05:16.440 --> 0:05:19.160 time podcaster. Body, you kind of have been forced into 0:05:19.240 --> 0:05:22.440 that through the pandemic as weddings are mostly non existent, 0:05:22.440 --> 0:05:25.040 although they're they're on the comeback and you've done a few. 0:05:25.360 --> 0:05:28.080 It's gonna be a hot year for right, It's like 0:05:28.080 --> 0:05:30.680 that pent up demand. Oh yeah, everybody's gonna be getting hitched. 0:05:30.720 --> 0:05:32.560 It's even if they don't want to, they're gonna do it, 0:05:32.640 --> 0:05:35.160 you know. And I'm pumped to be working on how 0:05:35.160 --> 0:05:37.880 the money stuff with you full time, my friend. Good stuff, 0:05:37.880 --> 0:05:40.080 But I will say I'm already missing some of the 0:05:40.120 --> 0:05:41.839 people that I worked with, as well as some of 0:05:41.839 --> 0:05:45.760 the secondary benefits that my former employer offered. Uh, Matt, 0:05:45.800 --> 0:05:48.560 you're a pretty good buss, right, but uh but you know, 0:05:48.680 --> 0:05:50.920 you just don't offer the range of benefits that I've 0:05:50.960 --> 0:05:52.920 kind of grown accustomed to. Hey, I do allow us 0:05:52.960 --> 0:05:55.920 to continue drinking beer every well almost every episode. That's 0:05:55.920 --> 0:05:59.080 a good point. That's a very good benefit. And uh yeah, 0:05:59.160 --> 0:06:01.360 so I've I feel like I did a solid job 0:06:01.360 --> 0:06:03.880 taking advantage of those benefits over the years where where 0:06:03.960 --> 0:06:06.479 when I had access to them, but given how extensive 0:06:06.520 --> 0:06:08.520 they were, I probably could have made it even more 0:06:08.560 --> 0:06:10.240 of a priority to use them on the leg And 0:06:10.279 --> 0:06:12.440 I feel like that's the impetus for this episode, Like 0:06:12.680 --> 0:06:15.720 we want to talk about what benefits are often available, um, 0:06:15.760 --> 0:06:17.599 and then encourage you to take advantage of them in 0:06:17.640 --> 0:06:19.719 the right ways. Yeah, that's right. And the fact is, dude, 0:06:19.720 --> 0:06:22.680 you are not alone. There are many potential benefits that 0:06:23.120 --> 0:06:25.200 folks who are listening out there that your employer probably 0:06:25.200 --> 0:06:28.680 offers that you may or may not be taking advantage of, right, 0:06:28.960 --> 0:06:31.520 but not using those benefits to their fullest potential can 0:06:31.560 --> 0:06:34.599 be akin to leaving money on the table. And we're 0:06:34.640 --> 0:06:38.200 fans of you never leaving a dollar behind. Not every 0:06:38.240 --> 0:06:40.520 benefit that we mentioned here today is going to be 0:06:40.600 --> 0:06:43.640 of interest to you, but it's at least worth doing 0:06:43.640 --> 0:06:46.880 a little digging to see what is available so that 0:06:46.960 --> 0:06:50.159 you aren't leaving any any awesome benefits by the wayside. 0:06:50.200 --> 0:06:51.960 We want to make sure that you're squeezing every little 0:06:52.000 --> 0:06:54.240 less bit of toothpaste there out of the tube. It's 0:06:54.279 --> 0:06:56.400 just they're waiting on you. Yeah. Yeah, And you know, 0:06:56.520 --> 0:06:59.479 your salary obviously is a massively important feature of taking 0:06:59.480 --> 0:07:02.240 a job. It's the biggest benefit that you're gonna receive. 0:07:02.400 --> 0:07:06.320 Like I doubt that anybody out there has secondary benefits 0:07:06.320 --> 0:07:09.600 that outweigh the regular income that they get, right, um, 0:07:09.640 --> 0:07:11.800 except for like the super high rollers getting paid you 0:07:11.840 --> 0:07:15.240 know in stock options. That's uh, that's not our listeners. 0:07:15.240 --> 0:07:18.200 I don't think though. So. But your compensation package, of course, 0:07:18.240 --> 0:07:21.720 goes far beyond just the salary piece, And especially if 0:07:21.760 --> 0:07:24.200 you're in the job market looking for a new position 0:07:24.320 --> 0:07:27.160 right now, it's really important to dissect not just the 0:07:27.280 --> 0:07:30.240 upfront salary number, but to assess the additional benefits that 0:07:30.240 --> 0:07:32.480 are being offered to you as well. You might find 0:07:32.560 --> 0:07:35.640 that maybe a job with a five thousand dollar higher 0:07:35.680 --> 0:07:38.840 starting salary is actually worse for you when you run 0:07:38.880 --> 0:07:42.600 the numbers than another job, purely based on how the 0:07:42.600 --> 0:07:45.720 benefits stack up. The job that pays more money might 0:07:45.760 --> 0:07:49.000 restrict or not even offer other really important benefits. And 0:07:49.080 --> 0:07:51.880 those benefits really really at up. Yeah. And one of 0:07:51.920 --> 0:07:55.280 the other cool things about employer benefits as opposed to 0:07:55.320 --> 0:07:58.520 increased pay is the fact that many of these benefits 0:07:58.560 --> 0:08:03.040 aren't taxed all, or maybe they are tax efficient, right. 0:08:03.280 --> 0:08:04.960 It's kind of like how the cash back that you 0:08:05.000 --> 0:08:07.440 might earn with a credit card isn't taxed versus what 0:08:07.480 --> 0:08:10.120 you earn on a savings account each year is taxed. 0:08:10.520 --> 0:08:13.360 It's similar with some of these additional benefits, and so 0:08:13.480 --> 0:08:15.200 we wanted to point this out because this is a 0:08:15.240 --> 0:08:18.400 major reason that we are paying attention to these secondary benefits. 0:08:18.440 --> 0:08:20.280 You know, having a bump in your pay is nice, 0:08:20.280 --> 0:08:22.480 but when some of these benefits aren't taxed, you are 0:08:22.520 --> 0:08:26.200 receiving that, you know, the full benefit, versus something being 0:08:26.240 --> 0:08:28.520 taxed multiple times, which is what happens to your pay. 0:08:28.520 --> 0:08:31.320 And that's what makes these benefits so valuable. Yeah, and 0:08:31.360 --> 0:08:33.360 glass doors, well, they actually found that eight percent of 0:08:33.360 --> 0:08:37.959 employees would prefer an uptick in benefits to getting more pay, 0:08:38.040 --> 0:08:40.400 and that makes sense to me. Matt, My my last 0:08:40.400 --> 0:08:44.640 boss offered the incredible benefit of a free international flight 0:08:44.720 --> 0:08:47.719 every year. And it's not something we're offering here yet. 0:08:47.720 --> 0:08:50.960 How the money not yet maybe someday, but that was like, man, 0:08:51.000 --> 0:08:53.440 that was one. It was great for bonding with my 0:08:53.640 --> 0:08:56.520 colleagues too. I get to see another part of the world. 0:08:56.559 --> 0:08:59.679 I got to explore six different continents this way and 0:08:59.720 --> 0:09:01.559 that as a park. We didn't go to Antarctica. I 0:09:01.600 --> 0:09:04.520 don't know why, um, but yeah, not yet, But I 0:09:04.520 --> 0:09:06.880 gotta say I know why four out of five people 0:09:06.920 --> 0:09:09.839 would prefer an excellent benefit to more pay. There are 0:09:09.880 --> 0:09:12.840 lots of employer benefits that can be even more rewarding 0:09:12.840 --> 0:09:15.439 than just adding more pay into the equation. And I 0:09:15.480 --> 0:09:18.679 feel like often those unique benefits develop an even greater 0:09:18.800 --> 0:09:21.559 sense of loyalty to the place where you're working. Sometimes 0:09:21.559 --> 0:09:23.839 those benefits you actually overvalue them. And I think it's 0:09:23.840 --> 0:09:25.800 okay like to to say, you know what, this benefit 0:09:25.840 --> 0:09:27.840 means more to me than cash, Like that's a normal 0:09:27.920 --> 0:09:30.840 response when a solid benefit is offered from an employer 0:09:30.880 --> 0:09:33.840 that you love. Yeah, in fact is those benefits are 0:09:33.960 --> 0:09:36.200 not only good for you as the employee, but like 0:09:36.240 --> 0:09:38.720 you said, like they're good for the employer as well. Right. 0:09:38.800 --> 0:09:41.520 That bonding that takes place during something like a vacation, uh, 0:09:41.640 --> 0:09:43.240 something like a trip where you're all kind of doing 0:09:43.280 --> 0:09:45.959 it together, that's that's awesome. And the fact it's too 0:09:46.000 --> 0:09:48.280 Had you just gotten more pay, there's a chance like 0:09:48.360 --> 0:09:50.400 maybe you would have gone on another extra trip or 0:09:50.440 --> 0:09:52.599 something like that, but you likely would have done the 0:09:52.640 --> 0:09:54.760 smart and responsible thing with that money. You would have 0:09:54.800 --> 0:09:56.800 sucked it away, you would have invested it. You wouldn't 0:09:56.800 --> 0:09:59.480 have taken these steps that would have ensured a better 0:09:59.800 --> 0:10:03.320 U workplace. Uh, camaraderie with your with your fellow coworkers, 0:10:03.400 --> 0:10:06.239 right completely. Yeah. If if it weren't in the form 0:10:06.280 --> 0:10:09.560 of free travel, I would not have spent it on travel. Probably, 0:10:09.559 --> 0:10:11.560 you're right. And I think that's another reason that the 0:10:11.600 --> 0:10:14.440 benefit is helpful, because it almost forces you to do 0:10:14.520 --> 0:10:16.920 something or helps you do something that you might otherwise 0:10:16.960 --> 0:10:19.319 put off. It's that nudge in the right direction. So, 0:10:19.760 --> 0:10:22.600 but international plane tickets are pretty rare there when it 0:10:22.600 --> 0:10:25.440 comes to different employers. Uh. And also too, we're not 0:10:25.440 --> 0:10:28.239 going to be talking about like the Google style benefits 0:10:28.320 --> 0:10:32.079 like yoga classes and chair massages, chef made meals I've 0:10:32.080 --> 0:10:35.040 got going on there during lunch. But we will get 0:10:35.040 --> 0:10:37.640 to the more common benefits that you're likely to have 0:10:37.679 --> 0:10:40.040 access to and their importance. And we're gonna get to 0:10:40.080 --> 0:10:51.839 all of those right after this break. All right, we're back. 0:10:51.960 --> 0:10:55.840 Let's start talking about the most beneficial benefits Boo, yes, 0:10:55.840 --> 0:10:58.199 I went there, and how you can use them to 0:10:58.240 --> 0:11:01.080 your full advantage. And and let's start off like the 0:11:01.080 --> 0:11:03.560 benefit that pretty much everybody knows if they have access 0:11:03.600 --> 0:11:06.280 to this or not, is a workplace retirement account. Whether 0:11:06.320 --> 0:11:08.080 it's oh yeah, four oh one k A four or 0:11:08.120 --> 0:11:10.200 three B a t SP And we talk about this 0:11:10.320 --> 0:11:12.920 a lot on the show. Getting a match is obviously 0:11:13.240 --> 0:11:15.360 the big perk if your employer offers one of those 0:11:15.360 --> 0:11:18.559 alongside it, so make sure not to leave that match 0:11:18.640 --> 0:11:20.880 just sitting there. That was in our Money Gears episode 0:11:20.880 --> 0:11:22.960 we talked about that it's such an important part of 0:11:23.000 --> 0:11:25.160 building up wealth in your life. But even if you 0:11:25.200 --> 0:11:27.000 don't have a match, there's a really good chance you're 0:11:27.000 --> 0:11:30.360 gonna want to participate in your workplace retirement account. It 0:11:30.360 --> 0:11:33.080 gives you access to being able to invest quite a 0:11:33.080 --> 0:11:35.880 bit of money every year for the future, but also 0:11:35.920 --> 0:11:37.760 to We're not gonna dwell on this topic very much 0:11:37.760 --> 0:11:39.520 because we have talked about it before, but we couldn't 0:11:39.559 --> 0:11:42.000 do this episode about benefits and not even mention it 0:11:42.040 --> 0:11:44.000 at all. Yeah, that's right, And also it's worth noting 0:11:44.040 --> 0:11:46.120 that there are sort of these hidden benefits kind of 0:11:46.160 --> 0:11:50.000 located within a work sponsored retirement accounts, So for example, 0:11:50.120 --> 0:11:53.080 you might have some automatic increases that are built into 0:11:53.080 --> 0:11:55.120 your retirement plan. It sounds like it's not a big deal, right, 0:11:55.679 --> 0:11:57.960 but we're gonna argue that it is because it helps 0:11:58.000 --> 0:12:01.400 you to overcome the behavioral uh ineptitude that we all faced. 0:12:01.440 --> 0:12:04.120 You know, it's it's tough to manually increase what we're 0:12:04.160 --> 0:12:08.640 investing every year. Uh So oftentimes we don't increase how 0:12:08.679 --> 0:12:11.160 much we're saving every year because it's not something that 0:12:11.280 --> 0:12:14.160 you know is automatic. But many four ow K plans 0:12:14.200 --> 0:12:17.280 will allow you to automatically increase the percentage of your 0:12:17.320 --> 0:12:20.360 pay that you put into your retirement plan without having 0:12:20.400 --> 0:12:22.480 to think about it. It's sort of like this automatic stairstep, 0:12:22.520 --> 0:12:25.480 this kind of automatic ladder that's implemented. Uh and you 0:12:25.480 --> 0:12:28.080 get to see those percentages increase every single year. Yeah. 0:12:28.080 --> 0:12:30.360 So if you do have that, put it intomotion so 0:12:30.400 --> 0:12:32.040 that you don't have to think about it from here 0:12:32.080 --> 0:12:34.880 on out, whether whether you choose one to three every 0:12:34.960 --> 0:12:38.319 year that you're going to step up your contributions increase 0:12:38.320 --> 0:12:40.920 every year. I mean, if you're a real bott let's boy, 0:12:41.960 --> 0:12:44.000 I mean, I think taking the advantage of that though, 0:12:44.040 --> 0:12:46.319 sending that emotion so that you really don't have to 0:12:46.360 --> 0:12:48.320 think about it. That the less you have to think 0:12:48.360 --> 0:12:51.839 about contributing money to for your future, uh, the easier 0:12:51.840 --> 0:12:53.319 it's going to be. Right. Yeah, And I mean I'll 0:12:53.360 --> 0:12:55.360 say to we kind of have a love hate relationship 0:12:55.480 --> 0:12:59.160 to automation. Right on one hand, I hate when we 0:12:59.200 --> 0:13:02.560 become overly depend on this technology and you don't internalize 0:13:02.600 --> 0:13:04.600 the fact that you are an investor. You like, you 0:13:04.600 --> 0:13:06.440 haven't internalized you can't kind of come up with the 0:13:06.480 --> 0:13:07.960 reason why it is that you're doing that. I don't 0:13:08.000 --> 0:13:10.800 like that. However, at the same time, if it means 0:13:11.200 --> 0:13:13.840 that you're starting to set money aside for your retirement 0:13:13.840 --> 0:13:16.040 that you would not have done otherwise, than I mean, 0:13:16.080 --> 0:13:18.240 I can't really argue with that, you know, totally, Like 0:13:18.320 --> 0:13:20.000 in this case, I feel like it's an instance where 0:13:20.120 --> 0:13:21.960 go ahead and start doing the thing that you should 0:13:21.960 --> 0:13:24.520 be doing, even if you don't even necessarily completely know why, 0:13:24.800 --> 0:13:26.920 and then over time you can kind of grow into 0:13:26.920 --> 0:13:30.640 those bridges and totally. A potential downside to a workplace 0:13:30.640 --> 0:13:34.520 retirement plans that's worth mentioning is that your employer might 0:13:34.520 --> 0:13:36.840 be offering you a plan that has really had fees 0:13:36.920 --> 0:13:40.240 inside of that workplace retirement account. It's still likely worth 0:13:40.280 --> 0:13:42.640 it if they offer a match, but if they don't, 0:13:42.840 --> 0:13:45.880 you might be better off investing inside of your own 0:13:45.920 --> 0:13:48.880 I RA first. A good rule of Thomas actually look 0:13:48.920 --> 0:13:51.840 for the funds in your employer's plan that have the 0:13:51.880 --> 0:13:55.800 lowest expense ratio. Those are often total stock market funds 0:13:55.920 --> 0:13:59.200 or target date retirement funds, which are great funds. They're 0:13:59.240 --> 0:14:01.320 well diversified, and they're like the easiest ones to pick. 0:14:01.400 --> 0:14:04.640 So if you're kind of be fuddled by which fund 0:14:04.720 --> 0:14:07.880 to its started investing in in your employer's plan, look 0:14:07.880 --> 0:14:10.080 at the expense ratio, go down the list, find the 0:14:10.120 --> 0:14:12.560 lowest one. In all likelihood that is going to be 0:14:12.600 --> 0:14:14.040 one of the best funds for you to put your 0:14:14.040 --> 0:14:16.160 money in. That is true, man, And so let's go 0:14:16.160 --> 0:14:18.520 ahead and move on then to the next benefit that 0:14:18.559 --> 0:14:21.200 we want to cover. U. Some employers are helping to 0:14:21.360 --> 0:14:24.840 pay down student loan balances for their employees. Your employer 0:14:24.880 --> 0:14:27.760 can pay five thousand, two hundred fifty dollars annually towards 0:14:27.840 --> 0:14:30.800 your student loan balance, and the best part is that 0:14:30.920 --> 0:14:33.880 it doesn't count towards your taxable income. This is a 0:14:33.960 --> 0:14:36.840 perk that is becoming more common, UH and one that 0:14:36.920 --> 0:14:39.840 is massively beneficial to many of the young people in 0:14:39.840 --> 0:14:42.440 the workforce today. And your employer can make these payments 0:14:42.480 --> 0:14:46.320 either directly to you, the employee, or directly to the 0:14:46.400 --> 0:14:49.640 lender who is servicing your loan. This is specifically a 0:14:49.680 --> 0:14:52.320 benefit due to the the Cares Act from last year, 0:14:52.360 --> 0:14:55.800 and it's set to go through five. At that point 0:14:55.960 --> 0:14:57.960 we will see if it continues to be a tax 0:14:58.040 --> 0:15:01.040 free benefit. Yeah, and I like that to Matt. Since 0:15:01.080 --> 0:15:05.480 this is a relatively new benefit potential for employers. As 0:15:05.520 --> 0:15:07.920 an employee, it's worth bringing up and asking your HR 0:15:07.960 --> 0:15:10.880 department the question, Hey, is this offered? If not, is 0:15:10.920 --> 0:15:14.200 there any plan in the future that this might be offered, 0:15:14.240 --> 0:15:16.600 Because Yeah, that's a good chunk of change that you're 0:15:16.640 --> 0:15:18.080 gonna be able to get tax free to go towards 0:15:18.080 --> 0:15:21.320 your student loans if your employer jumps on board. So yeah, 0:15:21.360 --> 0:15:23.800 worth asking the question. At least. The next benefit that 0:15:23.800 --> 0:15:25.320 we want to cover is h S, A S and 0:15:25.520 --> 0:15:29.160 f S as Health savings accounts and flexible spending accounts 0:15:29.200 --> 0:15:33.280 are often another killer perk that offer significant tax benefits 0:15:33.360 --> 0:15:36.400 to you if you use them wisely. H s as 0:15:36.440 --> 0:15:39.680 in particular, if you have a high deductible healthcare plan 0:15:39.880 --> 0:15:44.080 are or like having another tax advantaged retirement account. They're 0:15:44.080 --> 0:15:47.480 actually the most tax advantaged account that currently exists on 0:15:47.520 --> 0:15:50.320 the face of the earth. That triple triple tax advantage exactly. 0:15:50.840 --> 0:15:53.040 We talked about this in depth and episode one oh five, 0:15:53.400 --> 0:15:56.200 So don't skip over those plans when open enrollment is 0:15:56.240 --> 0:15:58.680 going on where you work. If it makes sense for you, 0:15:58.760 --> 0:16:01.560 going into a high deduct corble healthcare plan just to 0:16:01.560 --> 0:16:03.920 take advantage of an h s A essentially could be 0:16:03.960 --> 0:16:07.160 a killer move because it's gonna allow you to save 0:16:07.240 --> 0:16:12.160 and invest more for your retirement inside of this little 0:16:12.200 --> 0:16:14.760 vehicle that not many people know enough about. And h 0:16:14.840 --> 0:16:17.560 h s as have become way more common as employers 0:16:17.640 --> 0:16:20.880 offer more and more high deductible plans in order to 0:16:20.920 --> 0:16:23.760 cut their healthcare costs. Uh. And then f s a 0:16:23.920 --> 0:16:27.160 s have an even longer history and go beyond healthcare expenses. 0:16:27.200 --> 0:16:30.640 You can open a healthcare and a dependent care f 0:16:30.800 --> 0:16:33.360 s A as a way to avoid income tax on 0:16:33.400 --> 0:16:35.400 the money that you will spend this year on either 0:16:35.480 --> 0:16:39.240 healthcare expenses or daycare. And you know, if you max 0:16:39.320 --> 0:16:42.200 these out, you will avoid tax on seven thousand, seven 0:16:42.400 --> 0:16:45.120 fifty dollars and earnings. Uh. That's a good chunk of 0:16:45.120 --> 0:16:48.560 money that you are receiving full on without being taxed on. Yeah, 0:16:48.560 --> 0:16:51.000 it's so great. Yeah. Yeah. And again I F I say, 0:16:51.000 --> 0:16:53.320 though you have to pay specific attention to the details, 0:16:53.360 --> 0:16:55.360 because if you stock all that money away and then 0:16:55.400 --> 0:16:57.960 you don't actually use it that year, f I say, 0:16:58.040 --> 0:16:59.480 is like use it or lose it, And and so 0:16:59.520 --> 0:17:01.800 you want to make sure that you're only putting away 0:17:01.880 --> 0:17:03.360 what you're going to be able to use the next year. 0:17:03.760 --> 0:17:06.040 Matt was just giving the maximum amount that you can 0:17:06.600 --> 0:17:09.000 put away tax free, but only if you're gonna actually 0:17:09.119 --> 0:17:11.840 use that much on healthcare and dependent care expenses. Otherwise 0:17:11.840 --> 0:17:13.879 you might end up with a ton of sunscreen in 0:17:13.920 --> 0:17:17.400 your closet that might go bad over the years. Yeah, exactly. 0:17:17.800 --> 0:17:19.520 And no matter where you're employed and h s A 0:17:19.560 --> 0:17:21.080 or an f s A, those are those are pretty 0:17:21.080 --> 0:17:23.199 popular offerings. You're likely going to have access to one 0:17:23.240 --> 0:17:26.400 of the two at many employers that you'd work for. 0:17:27.000 --> 0:17:29.560 One that you probably don't have access to or very 0:17:29.560 --> 0:17:32.600 few people do as an e SPP employee stock purchase plan. 0:17:33.240 --> 0:17:35.399 And if you do and you use it properly, this 0:17:35.440 --> 0:17:37.520 can be another solid benefit. I don't want to dwell 0:17:37.600 --> 0:17:40.120 on this because this is not a benefit that most 0:17:40.119 --> 0:17:42.080 people have that we've talked about it in the past, though. 0:17:42.119 --> 0:17:44.199 We'll put a link in the show notes to an 0:17:44.200 --> 0:17:46.920 episode where we did discuss ees pps in some detail. 0:17:47.400 --> 0:17:49.320 And and Matt, two, let's talk about life insurance. Many 0:17:49.320 --> 0:17:52.920 employers will offer you free life insurance coverage. This isn't 0:17:52.920 --> 0:17:55.920 a major perk because term life insurance is pretty cheap, 0:17:56.119 --> 0:17:58.280 so but it's still nice to have, right, It's still 0:17:58.320 --> 0:18:00.240 a benefit that that you can that you can get 0:18:00.320 --> 0:18:02.119 through a lot of employers. And I will say it 0:18:02.119 --> 0:18:05.720 becomes an even better benefit though if you have like 0:18:05.800 --> 0:18:08.760