By A.B. Ridgeway CPWA®, EA, MBA
Before we get started, here’s my standard reminder: this article is for education and general information. It is not individualized financial advice. Your 401k decision should be based on your full picture—income, debt, taxes, goals, time horizon, and your employer plan rules.
A “Stop Contributing to Your 401k” Video Went Viral… So I Reacted
A video titled “Stop Contributing to Your 401k” grabs attention fast—because it hits a nerve.
Most people already feel tension about retirement:
- “Am I doing enough?”
- “Is my 401k actually helping me?”
- “What if I’m wasting money?”
- “What if I’m doing it wrong?”
So when a creator tells you to stop contributing, your brain immediately leans in.
In my latest episode of The Ridgeway Report, I watch and react to a creator’s take (shout out to Richard Fain), and I add professional context so you don’t make a life-changing retirement decision based on a headline.
The Truth: A 401k Isn’t “Good” or “Bad”… It’s a Tool
A 401k is not a scam. It’s not magic. It’s not evil. It’s a tool.
And like any tool, it works best when:
- You understand what it is
- You know the rules of your plan
- You use it intentionally
The mistake people make is treating a 401k like a personality trait—either “401ks are amazing!” or “401ks are trash!”
Real planning is more nuanced than that.
What Most People Don’t Understand About a 401k: The Administrator
In the video, one point that I agree with is this:
“Normally with a 401k plan… you have what they call a 401k administrator… and they give you different options to put your money into so it can grow over time.”
This matters.
Most employer-sponsored 401ks are run by a recordkeeper/administrator (often a brokerage or retirement plan company). They handle the infrastructure:
- your contributions and payroll deposits
- investment options inside the plan
- plan statements and reporting
- distributions, loans, and paperwork
- administrative rules and compliance
That “professional management” gives many people the confidence to start, because they don’t want to manage everything alone.
But here’s the part many people miss:
Professional management doesn’t remove personal responsibility.
You still need to understand the basics:
fees, match rules, vesting, contribution limits, taxes, and withdrawal rules.
The plan can be professionally run… and you can still make a bad decision inside it.
The “Get Professional Help” Part Was the Best Thing He Said
One thing I respected immediately:
He said you need a professional before you make major 401k decisions.
That’s rare on the internet.
Because most creators want to sound confident—even when they don’t know your situation. But the truth is:
- A 401k decision affects your taxes
- Your retirement timeline
- Your future income
- Your employer benefits
- Your ability to build wealth
And if you make the wrong move, you won’t feel it today… you’ll feel it years from now.
That’s why I say it plainly:
✅ If you’re considering stopping contributions, rolling over, cashing out, or changing strategies—get professional guidance.
Why People Start a 401k: The 3 Most Common Reasons
In the video, Richard explains why he started contributing at 28. His reasons are common and they reveal a lot about how real people make financial decisions.
1) “People around me were doing it”
He said he had “zero net worth,” but coworkers were getting results.
That’s powerful.
Whether we admit it or not, most of us learn money habits through social proof. We watch what other people do and assume they know something we don’t.
Here’s the lesson:
You become the company you keep.
If you listen to people who never built retirement wealth, their advice often matches their results.
If you listen to people who have built wealth responsibly, their advice tends to include nuance, patience, and discipline.
2) The 401k match (“free money”)
He also mentioned the match, which people love to call free money.
I’ll say it like this:
It’s not “free.” It’s a benefit.
And benefits have rules.
Your employer match depends on:
- eligibility (how long you’ve worked there)
- how much you contribute
- vesting schedules (how long you must stay to keep it)
- the plan’s match formula
Some plans match dollar-for-dollar up to a percentage. Some match less. Some include profit sharing. Some don’t.
And if you don’t understand your match, you may be:
- leaving money on the table, or
- over-contributing without a clear strategy, or
- missing better options based on your goals and tax situation
Where do you find the real match rules?
In your employee benefits guide or plan documents from HR/your plan provider.
If you don’t know where to find it—this is exactly the kind of thing I help clients with.
3) “I wanted experts handling the complexity”
This part is real.
Many people like the structure of:
- automatic payroll contributions
- pre-built investment options
- simple statements and tracking
And for some families, that simplicity is the difference between investing and doing nothing.
My Main Take: Don’t Let a Headline Make Your Retirement Decisions
A title like “Stop Contributing to Your 401k” is designed to trigger emotion.
But the correct question isn’t:
“Should I stop?”
It’s:
“Should I adjust my strategy based on my goals, taxes, benefits, and timeline?”
Because sometimes the answer is:
- keep contributing
- increase contributions
- shift investments
- prioritize debt first
- use Roth vs traditional
- focus on match only
- coordinate with IRA/HSA
- or build a blended plan
That’s planning.
What To Do Before You Change Anything
Here’s a simple checklist to run before you stop contributing:
- Know your match (and your vesting schedule)
- Know your plan fees (admin + fund expenses)
- Know your tax bracket (now vs expected in retirement)
- Know your debt situation (especially high-interest debt)
- Know your retirement timeline (years until retirement)
- Know your full plan (not just your 401k—everything)
If you can’t answer those quickly, don’t worry—most people can’t.
That’s why professionals exist.
Ready to Build a Real Retirement Plan (Not Just a 401k Habit)?
If you’re unsure whether you should keep contributing, reduce contributions, or restructure your retirement strategy, I’d love to help you build a plan that fits your life—not a generic internet opinion.
✅ We can review:
- your employer benefits and match rules
- contribution strategy (traditional vs Roth)
- plan fees and investment options
- rollover/leave-it decisions when changing jobs
- retirement income planning and taxes
👉 Schedule your consultation here:
About the Author
A.B. Ridgeway, CPWA® is the founder of A.B. Ridgeway Wealth Management and host of The Ridgeway Report. He specializes in helping retirees and pre-retirees create reliable income, invest with clarity, and make confident financial decisions.
Join our Newsletter and receive our free 19-page e-book “4 Financial Principles Every Christian Should Know”
Click Here To Get Your Free Gift
About The Ridgeway Report:
As Christians, we were taught to be good stewards over our tithing and giving to the less fortunate. But when it came to our personal finances and investing we were left clueless on what the Bible says. What does the Bible say about managing debt, leaving a legacy, investing, and planning for your retirement? Mr. Christian Finance answers these and many other questions because we want to teach you how to become rich and righteous!
Meet A.B. Ridgeway:
A.B. Ridgeway, MBA, CPWA®️ (info@abrwealthmanagement.com) is the owner and Christian Financial Advisor with A.B. Ridgeway Wealth Management. With a decade in the finance industry, his goal is to give believers clarity around the most confusing topic in the Bible, money, and tithing. A.B. Ridgeway helps tithing Christians become cheerful givers but unlocking their money-making potential, so they can prosper and be the great stewards of the wealth God has entrusted them with.
*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.
*Some elements in this blog was created, restructured, edited or summarized by AI and may have altered from the original content. Warning: There may be errors that were creating during this transition that were not in the original content. Please double check all information.
