Esmeringhology 101
What is a 403(b) Plan?
A 403(b) lets employees save money from their paycheck for retirement.
What type of retirement plan does Sarah's nonprofit organization offer?
403(b) retirement plan
Sino ito?
"Boss Mark, baka po di ako makasahod. pa follow up sa payroll"
Emzzzzzz
Who tells Sarah that she is missing an important benefit?
Her coworker (Alex)
Why doesn't Sarah contribute to her retirement plan?
She believes retirement is still far away
How does a 403(b) plan work?
Employees contribute money from their paycheck into a retirement account, where it can be invested and grow over time until retirement.
What is employer matching?
Employer matching is when the employer contributes additional money to the employee's retirement account based on the employee's contribution.
"Ohh, nawala nanaman si Jem, Hintayin naten siya."
Kaninong linya to?
Sir Mark
What valuable opportunity is Sarah missing by not contributing?
She is missing employer matching contributions and potential investment growth.
Why is employer matching often called "free money"?
Because the employer adds money to the retirement account without the employee having to earn it separately.
Why is starting retirement contributions early usually more beneficial than starting later?
Starting early allows money to grow longer through compound interest, resulting in a larger retirement fund over time, even with smaller contributions.
If Sarah waits 20 years before starting to save, how could that affect her retirement savings?
She may have significantly less retirement savings because she loses years of compound growth and employer matching contributions.
Ano ang favorite line ni Sir Mark?
Ohh, Basa na lang yan ha.