Stretching the Match

Hi! I'm Jonathon Schultheiss.

I want to give you three benefits of stretching your company match. But first, let me ask a question.  

The question is, how can you a as a company that sponsors a 401k or 403b plan, turn your plan from a liability into an asset that gives you an unfair advantage, and become a 401k superhero to your employees?  

That is the question, and these videos will give you the answers.  I’m Jonathon Schultheiss and welcome to the Ultimate 401k Advantage videos.   

Lets first start by understanding what stretching the match means? 

We were just recently hired by a company to help them turn their plan into an asset.  This company wanted to add a match to their plan so they asked how much they should match. 

They were first considering matching dollar for dollar up to 3% for their employees. 

I said, lets consider this.  What if you were to match 50% on the dollar up to 6%.  It would cost the company the same amount.  

Then I said, what if we were to match 30% up to 10% of your employees salary? 

You see, in each of these options, the cost to the company is exactly the same.  It’s 3%.  

So let’s talk about three benefits of stretching your company match. 

Benefit number one is that it doesn’t cost the company any more to stretch the match.  Each scenario was exactly the same cost. 

Benefit number two, is that you incentivize your employees to save more. 

I couldn’t tell you the amount of times I’ve been in enrollment meetings and hear participants make the statement, “If my company only matches me 3%, why would I want to save more?” 

Silly question, but that’s how some participants think. 

Benefit number three is that often it seems a better benefit to your employees. 

Think about this.  If you get matched up to 3% but your buddy’s company matches them up to 6% or even 10%, which one sounds better?  Of course the higher match. 

The ultimate benefit is that you get employees saving more and feeling like they have a better benefit so it becomes a win win for both the company and the employees. 

When it’s a win win for both you and your employees, you gain an unfair advantage and you become a 401k Superhero to your employees. 

Want to learn more and get more ideas like this?  Then get your free copy of my new book The Ultimate 401k Advantage, The 5 Step Process to Becoming a 401k Superhero to Your Employees today!