If I was a financial planner, what is the first investment I would look to make for my client?
The answer to this question isn’t the stock of the latest technology company or a commercial property in a very prestigious location. The answer is that I would first ask my client, “Does your employer offer a 401K for its employees?” A 401K would be the first investment I would look to get my clients invested in not because of what investments (stocks, bonds, REITS) go into this account, but because of the employer match.
The employer match gives you essentially “free” money or a “free” return. I put “free” in quotations because it isn’t exactly free because your employer is paying for it, but IT IS CERTAINLY FREE TO YOU, the employee.