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Investing Frameworks

Employer Match First Rule

If your employer offers a retirement account match, contribute at minimum enough to get the full match before doing anything else. A 50–100% match is an immediate, guaranteed return on your contribution.

Difficulty: ⭐ Beginner Category: Investing Frameworks
Best for

Every employed person with access to an employer-matched retirement account. Not using it is leaving guaranteed money unclaimed.

How to do it — step by step
1

Find your employer's match formula (e.g., '100% match up to 5% of salary').

2

Set your retirement contribution to at least that percentage immediately.

3

Confirm the vesting schedule — some employers require years of service before the match is fully yours.

4

After capturing the full match, consider additional contributions to other accounts.

Advantages & considerations
Advantages
  • Instant 50–100% return on your contribution
  • Pre-tax contributions reduce your taxable income this year
Worth Knowing
  • Vesting schedules may delay full ownership
  • Funds have early withdrawal penalties before qualifying age
Related systems
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