"Automatic" 401K enrollment & deductions

[Lurker Deluxe]

66. You have to opt out of many things

If you start with a company and don't want health/vision/dental ... you have to opt out, the default is you get those things.

Most companies have some sort of match, so the default option is to begin your 401K after you become eligible and set the contribution at the rate that will qualify for the match. To think that a company if trying to give you free money is somehow underhanded by them is a stretch.

It is amazing how many people opt out of these programs because of false information.

When I started with this company, in 2005, we went through the orientation and the 401K was explained along with all of our other benefits. There were like 7 of us in the orientation and two opted out, one of those people still works here. The annual 401K meeting is widely attended and after the meeting we tend to stand around and talk about what we are doing with our money and that one guy always tells us how stupid we are for "falling for the Wall Street shell game" and that we will lose all of our money. Ten years later my 401K is performing well and will help to provide for my retirement ... he has zilch, and tells me I am the fool.

Just crazy.