đź’°Retiring richer

Jul 07, 2024

This week we're diving into two key topics: bifurcation and maximizing employer matching contributions to retirement accounts. We'll explore how price splits in everyday goods like toilet paper can reveal economic pressures and why taking full advantage of your employer's matching contributions is a smart move for your retirement savings. Let's get started on understanding these concepts and boosting your financial well-being!

- Milan

IN THE STOCKS

  • S&P 500 5,567.19 (0.54%)
  • NASDAQ 18,352.76 (0.90%)
  • Dow Jones 39,375.87 (0.17%)

*Stock data as of closing on July 5th.

THE MONEY BREAKDOWN

 “Bifurcation”

Today we’re diving into something called bifurcation to see what it tells us about the economy. Bifurcation is just a fancy way of saying things are splitting into two. Take toilet paper, for example. Have you noticed how the price of high-end toilet paper keeps going up while the cheaper stuff is getting even cheaper? This price gap is what economists call bifurcation.

This split in prices can tell us a lot about economic pressures. When everyday items like toilet paper show such a price divide, it highlights how different income groups are affected. People who watch their spending closely feel the squeeze of rising prices much more than those who can afford premium products without a second thought. By paying attention to these trends, we can get a better sense of how different people are experiencing the economy. It's a small detail that gives us big insights into financial health and consumer behavior. Learn how to earn, save, and invest your money better here.

MILAN’S HACK OF THE DAY

Take Advantage Of Employer-matching Contributions To Retirement Accounts

Many employers offer to match a portion of your contributions to retirement plans like a 401(k). This means that for every dollar you contribute, your employer will add a certain amount, up to a specified limit. It's essentially free money that boosts your retirement savings without any extra effort on your part. Not taking full advantage of this match is like leaving money on the table.

Maximizing your employer's match can significantly accelerate your retirement savings. For example, if your employer offers a 50% match up to 6% of your salary, contributing at least 6% ensures you get the full match. This additional contribution can compound over time, thanks to the power of compound interest, leading to a much larger nest egg when you retire. So, check your employer's matching policy and make sure you're contributing enough to get the full match—your future self will thank you! Learn more about retirement plans and other accounts in your very own money plan. Simply answer a few questions here to customize yours.

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?