By Camille Sperrazza
Don’t leave money on the table – always take 100% of your employer’s 401(k) match. Metro sat down with Lanre Odedeyi and Ade Jobi-Taiwo, co-founders of TakeTheMatch, to find out how employees can benefit by taking full advantage of the 401(k) match offered by their employers, even if they cannot afford to contribute the minimum percentage.
What is TakeTheMatch?
TakeTheMatch is a consumer-centered financial solution that was born from a need observed in the 401(k) market. When it comes to employees taking advantage of their employers’ 401(k) matching programs, there is a gap, and TakeTheMatch offers a solution to bridge this gap. It offers employees the funds to take full advantage of their employers’ 401(k) match when they are fully vested in their employers’ matching program – all without reducing their net pay. For example, if your net pay is $ 2,000 per pay period, and your employer offers a 401(k) matching program to which you are unable to contribute, we offer a way for you to do so – and your net pay remains unchanged. We’ll provide individuals who qualify with a cash advance up to the limit of their employer matching program.
How did TakeTheMatch begin?
Two of our friends could not take advantage of their employer’s 401(k) match because they only earned enough to cover their living expenses and student loans. We decided to explore the depth of this problem. We talked to multiple people in the city, soon realizing that millions of Americans were also losing out on $24 billion in free employer contributions for similar reasons. We decided to create a solution that enables everyone to take full advantage of their employers’ matching contributions, with no reductions to their current take-home pay.
How does TakeTheMatch Work?
1. We will calculate how much is needed to take 100% of the employer’s match.
2. We will calculate the amount needed to keep the employee’s net pay paycheck the same.
3. The employee will make the change to their 401(k) contribution to take 100% of their employer’s match.
4. We will give the employee monthly cash advances equal to the reduction of the net paychecks.
5. The employee pays us our principal and a small service fee, after receiving the employer’s match.
Why use TakeTheMatch?
For us, it is more than the trite comment of leaving free money on the table. It is about enabling folks who aren’t making enough, to be able to make that 401(k) contribution, and benefit from the compound interest. A $3,000 yearly employer match($250 received monthly) can be worth more than $339,000 assuming it collects 8% interest per annum over 30 years. That is too much money to ignore! The best day to start saving for the future was yesterday, and the next best day is today.
How can people apply?
Folks can apply at www.takethematch.com. First time applicants can sign up with the referral code METRO-TTM and we will waive their first service fee!
What else would you like to tell us about the company?
The biggest thing for us at TakeTheMatch is to empower people to leverage the power of compound interest. We follow the debate on how the income inequality gap keeps getting wider and view our efforts as one of the ways to empower people and tackle the problem. The current discourse focuses on the present effects. The effects will compound and grow exponentially into retirement if folks don’t take action now.