• phoneymouse@lemmy.world
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    5 months ago

    Yeah… and a lot of companies use this to replace your 401k or in lieu of contributing to one. So, a big chunk of your retirement savings is tied up in the company and usually can’t be diversified until you’re pretty close to retirement age.

    Alternatively, if you leave the company, many will let you take money out and roll it into an IRA, but it’s usually capped at like $5k per year. It can take a long time to get your money out.