You’re young and just starting out in the workforce and lucky enough to be able to join in an employee sponsored savings plan (ESP).  Or your 40 years old and start a new job and asked if you want to participate in their ESP. Or your 60 and starting to think of retirement and wonder if you still need to keep saving in the ESP. – All of you are not sure what you should.

After spending years investigating employee sponsored savings plans, this detective’s answer? Yes, definitely, do not hesitate – don’t be a Schmo. Get ESP, Start ESP, ESP is your friend. I hope that’s clear enough. To understand it better let’s take a look at the definition.

Employee Sponsored Savings Plans (ESP) is a pooled investment account provided by an employer that allows employees to set aside a portion of their pretax wages for retirement savings or other long-term goals (i.e. paying for college tuition, purchasing a home). Many employers match their employees’ contributions up to a certain dollar amount, or by a certain percentage.

If your employer matches all or part of your contribution, that’s like found money! Which is Frank Money’s favorite kind of money! Keep in mind that there may be plans that require employees to remain employed for a minimum amount of time before they are vested and eligible to withdraw employer-matched funds. ESPs can be an attractive and relatively easy way for employees to lower their taxes and save for long-term goals.