Submitted by HeartOfPenny t3_xwllee in personalfinance
Hi, please forgive my ignorance on the topic. I just accepted a new job and it is my first career that offers a 401k with company match.
It is written “XYZ Company matches your contributions with $.50 for every $1 you contribute, up to 8%. You are 100% vested in your company match after three years of service.”
Can someone please eli5? What does this mean, and should I invest more than 8%? I really don’t have any idea what a 401k is besides that it’s a retirement account.
Thank you in advance for answering my very childish question…hah!