How To Make A Free 100% Return
Updated: May 5
This is not a get rich quick scheme. This is not some forex or bitcoin trading course. This is a way you can get an automatic 100% return on your investment. Now, where can you find this 100% return?
The answer is in a 401(k) employer match. Yes, I know it sounds pretty boring and dull, but it is one of the easiest ways for average people to earn a high return on their investment without a lot of upfront work or knowledge.
What is a 401(k) Match and How Do I Get One?
A 401(k) employer match is simply your employer matching your contributions to your 401(k) up to a certain limit on an annual basis. On average, most employers will offer an average of a 3% match per year; however, not every employer with 401(k) plans offer matches.
Since the median 401(k) match is 3%, let’s use it as an example.
Let’s say that you are working a job where you make $60,000 per year. Your employer will match up to 3% of that, or $1,800. So, every dollar you contribute up to $1,800, your employer will match it. So, if you contribute $1,800 into your 401(k) that year, your employer will contribute $1,800 into your account. Just by you depositing 3% of your salary into your 401(k), you already gained a 100%, turning your $1,800 into $3,600.
Now, this is not to mention the returns you make on your investment every year either.
What This Match Can Do For You.
Let’s look at another example showcasing the differences between investing in a 401(k) with a match and one without the match. We will also assume a 7% return. In the first case, let’s say you invest $1,800 every year without a match. After 30 years, your investment would total $195,633. Sounds awesome right? Well, it gets even better.
Now, let’s say you are investing that same $1,800, which is 3% of your salary, but this time your employer is matching 3% of your salary. In this instance, you will have $3,600 to invest after the match instead of $1,800. After 30 years, your investment will total $391,267.
By investing a mere 3% of your salary, you could have an investment totaling more than 1/3 of a million dollars in just 30 years.
Where To Go From Here.
If you are lucky enough to have an employer that matches your salary, you need to take advantage of it right away. You need to take advantage of these free 100% return. On the other hand, if your employer does not offer a match, that doesn’t mean to not invest your money altogether. Make sure to still find an investment that works for you, such as IRAs.