Habits and mindset//60s
Skipping the employer plan in residency? Run the math.
A worked example of a 4% match over four years of residency, and why money you don't save usually gets spent.
Transcript
I hear this a lot: I do not need to contribute to my employer plan during residency, I would rather set that money aside. I am going to challenge you and say the math says otherwise.
Look at an average match of four percent. Sometimes it is higher at university hospitals or residency programs. On one hundred thousand dollars, four percent is four thousand a year. Over four years that is sixteen thousand from your employer. You have to contribute your own four percent too, so that is another sixteen thousand of yours. Altogether, thirty-two thousand at the end of residency, before any growth.
I get that you will make a lot more as a practicing physician, but an extra thirty-two thousand is nice to have. And here is the real point: if you do not save it, you are more likely to spend it.
These are transcripts of short educational videos Malik published on his own social profiles, edited for readability and to remove phrasing that could read as a personal recommendation. They are general education and marketing, not tax, legal, or investment advice, and not a recommendation to buy, sell, exercise, donate, hedge, or hold any security or to use any account, plan, or strategy. Contribution limits, phase-outs, and tax treatment change and depend on your facts. Talk with your own tax, legal, and advisory professionals before acting.