I've always disliked the popular interpretation of the Tortoise and the Hare fable. Slow and steady wins the race, my eye! The tortoise did all that he could. The hare took a nap and barely lost. My interpretation – use your talents (and resources) frugally and you will get the best result possible. If the hare had appropriate incentives…
Let's take the unlikely leap to 401k participation and investing.
There are many reasons an employee might need incentive to enroll in a company 401k plan. For some, there's a lack of financial literacy. For others, it has less to do with understanding finances and more to do with the reality of living paycheck to paycheck. That's why many Employee Fiduciary clients choose automatic enrollment in their 401k plans – we have it in our plan and I encourage it as a best practice for small businesses.
You might be wondering why an employer would want to push an employee into forcibly saving for retirement – and why the Frugal Fiduciary supports it. Ayn Rand, Milton Friedman, John Locke and Henry David Thoreau would all likely rise in protest! But over the years, I've observed a few things most small business owners have in common:
1. They want to grow their businesses
2. They want to attract and retain the best talent
3. They want to treat their employees well, because it is the right thing to do