Let’s be honest. For most of us, reviewing our benefits package during open enrollment feels like tedious HR paperwork. We click a few boxes, stick with the default options, and move on with our busy lives. In some cases, not reviewing your benefits could mean missing out on valuable opportunities.
Your Employee Perks shouldn't just be viewed as a standard checklist. When leveraged correctly, they can be valuable financial tools that may help you work toward your retirement goals. In a recent insightful webinar, Fiduciary Financial Advisor Jim Madl of Hendricks Wealth & Estate Management broke down exactly how ordinary workers are leaving massive amounts of money on the table. According to Madl, done right, optimizing your workplace benefits can potentially add to your net worth annually, but is not guaranteed.
To help you get the most out of your career, we have put together this comprehensive Q&A guide based on Madl's expert advice. We will explore how you can potentially use your Employee Perks to improve your financial situation, understanding there is market risk in every situation.
Q: What is the single most valuable among standard Employee Perks?
A: For many employees, the employer match offered in retirement plans like a 401(k), 403(b), or Simple IRA may be among the most valuable perks, as it can act like a 100% bonus on your investment, depending on your situation.
Employer matches are a valuable benefit. As Jim Madl highlights, employer matches are a valuable benefit that can significantly enhance your retirement savings. For example, in a standard Safe Harbor 401(k) plan, an employer might match 100% of the first 3% of your contributions, and 50% of the next 2%. If you put in 5% of your salary, they give you an extra 4%. It’s essentially a 4% pay raise just for being financially responsible. You may want to consider contributing enough to capture your full company match, depending on your individual circumstances.
[03:19]
Q: Should I choose a Traditional or Roth 401(k) for my retirement Employee Perks?
A: Depending on your individual circumstances, a Traditional 401(k) may be more beneficial during your peak earning years, while a Roth 401(k) could be advantageous in your 20s and 30s.
The right answer comes down to your current age and tax bracket. When you're in your peak earning years—typically your late 40s and 50s—you're likely sitting in a higher tax bracket. In this scenario, Madl suggests opting for the traditional, pre-tax 401(k). This lowers your tax liability today. You'll pay taxes later when you withdraw the money during retirement, a time when your income is usually much lower.
Conversely, if you are in your 20s or 30s, you are likely in a lower tax bracket. Here, it makes perfect sense to leverage the Roth option within your Employee Perks package. You pay taxes on the money now, but it compounds over decades and becomes entirely tax-free when you pull it out.
[04:05]
Q: How can a Health Savings Account (HSA) enhance my Employee Perks package?
A: A Health Savings Account (HSA) acts as a powerful retirement vehicle by offering a "triple tax advantage" that lets you save, grow, and withdraw funds completely tax-free for medical expenses.
HSAs can be a very effective retirement tool for some individuals and the HSA might just be the most powerful retirement tool in existence. It is the absolute powerhouse of Employee Perks. First, your contributions are completely tax-deductible. Second, investment growth within the account is tax-free. Finally, your withdrawals for qualified medical expenses are tax-free.
But here is the real secret that most people miss: once you reach age 65, you can withdraw funds from your HSA penalty-free for any reason, not just healthcare! At that point, it effectively functions as a bonus 401(k). For 2026, the contribution limits are $4,400 for self-coverage or $8,750 for a family. Depending on your situation, you may want to consider fully funding your HSA and paying minor medical expenses out of pocket, allowing the account to potentially grow over time. [07:15]
Q: Who is actually eligible to use an HSA as part of their Employee Perks?
A: To be eligible for an HSA, you must be enrolled in a qualifying High Deductible Health Plan (HDHP) and meet specific IRS criteria regarding other health coverage.
While the HSA is incredible, not everyone qualifies. To take advantage of this particular perk in 2026, your health plan must have a minimum annual deductible of $1,700 for an individual or $3,400 for family coverage. Additionally, you cannot have a general-purpose Flexible Spending Account (FSA), you can't be on Tricare, you cannot be enrolled in Medicare, and no one else can claim you as a dependent on their tax return.
[09:06]
Q: What are the risks of relying on company stock incentives in my Employee Perks?
A: Company stock incentives like RSUs or ESPPs create major concentration risk, tying too much of your personal net worth to your employer's overall success.
Getting compensated with company stock is an exhilarating perk. Who doesn't love the idea of owning a piece of the company they work for? However, Jim Madl warns that this can actually create one of the single biggest dangers to your net worth.
Think about it. Your salary, your annual bonuses, and likely your retirement plan are already heavily tied to your employer. If the company hits a rough patch, you could face layoffs while simultaneously watching your stock portfolio tank. To mitigate this risk, ensure your employer stock makes up no more than 5% of your total net worth. Stock purchase discounts can provide a valuable benefit, but are subject to plan rules and market risks. Consider selling shares as soon as they vest to diversify, but consult your plan details and financial advisor. [10:27]
Q: Do standard Employee Perks provide enough life and disability insurance?
A: No, standard employer-provided disability policies generally only cover 60% of your salary, while workplace life insurance typically covers just one to two times your annual income.
Your ability to earn an income is hands down your most valuable asset. If you're a high earner, a 40% pay cut from a standard disability policy could severely disrupt your lifestyle and coverages.
Similarly, workplace life insurance is usually cheap but completely inadequate. Madl suggests if you have a mortgage, young children, or dependents, you may want to consider whether supplementing your Employee Perks with an external term life policy is appropriate for your situation. Some experts suggest that 10 to 12 times your annual income could be considered by some individuals, but the right amount of coverage depends on your unique circumstances and financial goals. [12:33]
Q: If I don’t qualify for an HSA, are Flexible Spending Accounts (FSAs) good Employee Perks?
A: Yes, Flexible Spending Accounts (FSAs) are excellent for paying predictable medical and dependent care costs with pre-tax dollars, though they follow strict "use it or lose it" rules.
If your health plan doesn't qualify you for the powerhouse HSA, a Flexible Spending Account (FSA) is a fantastic backup option within your Employee Perks. FSAs allow you to use pre-tax dollars to pay for known costs like co-pays, prescription medications, dependent daycare, and eyewear.
However, there is a major catch you must be aware of: any excess money left in an FSA at the end of the year usually vanishes. Unlike an HSA, the funds don't roll over. Therefore, you should carefully calculate your anticipated annual expenses and fund the FSA to that exact dollar amount to ensure you don't lose a dime.
[13:57]
Final Thoughts on Maximizing Your Employee Perks
Turning your Employee Perks into personal wealth ultimately comes down to efficiency and intentionality. By taking just a short hour to review your benefits package, you can secure thousands of dollars in free employer match money, unlock profound tax advantages, mitigate massive investment risks, and protect your family's future.
Don't let your workplace benefits be an afterthought! Pull out your latest enrollment sheet today, review the areas discussed above, and start making your hard-earned perks work as hard as you do.
Want the Guidance of Fiduciary to Help with Your Employee Benefits?
Visit www.hendrickswealth.com to schedule an employee perk review and see how we can help put you on a path towards potential greater financial stability as your career progresses.
Request a Free Consultation: Email us at info@hendrickswealth.com
Give Us a Call: 847-428-3997 (Illinois) or 941-308-9862 (Florida)
Visit Us Online: HendricksWealth.com
Locations: Algonquin, IL | Bradenton, FL
Hendricks Wealth & Estate Management is a firm dedicated to holistic financial planning. This article is for educational purposes and should not be taken as specific investment advice.