Retirement Retirement Planning

Mark Cuban's Blunt Warning About 401(k)s That People in Their 50s Don't Want To Hear

Your 401(k) contributions are only part of your retirement plan

By Kristin Hitchcock , Edited by Laura Hohenstein

Updated Nov. 2, 2026

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Mark Cuban has described someone who passes up an available 401(k) match as "an idiot." His point is blunt: You're leaving employer money unclaimed.

But collecting the match doesn't mean the rest of your retirement finances are in good shape. His advice on emergency savings and credit card debt raises another question worth asking: Are you building savings you can afford to leave invested?

In your 50s, you still have time to increase savings and fix expensive problems. You also have fewer working years to recover. If your retirement savings are stretched thin, start with what you're contributing, what you own, and what it costs. Here's what deserves a closer look.

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Check whether you're getting the full employer match

Your contribution rate and your employer's matching formula aren't necessarily the same number. Suppose you earn $80,000 and your company matches 50% of contributions on the first 6% of pay. Contributing 6%, or $4,800, would qualify you for the full $2,400 match.

If you stop at 3%, you'd receive only $1,200 under that formula. Check your actual plan's rules, including when employer contributions become yours to keep. In this example, contributing 3% instead of 6% means missing $1,200 in employer contributions over a year. Check the matching formula and vesting rules before assuming you're getting everything your employer offers.

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Revisit the contribution rate you set years ago

A payroll deduction handles the habit of saving. It doesn't tell you whether you're saving enough to retire at 65, cover your mortgage, or support two people on one account.

Look at your contribution rate alongside your expected retirement spending and other income, including Social Security. A percentage you chose when the kids were little might need updating now. If your pay, bills, or retirement date have changed, the percentage coming out of your paycheck may need to change, too.

Find out what your default fund actually holds

Your employer may have automatically placed you in a target-date fund. These funds generally shift toward a more conservative investment mix as their retirement year approaches, which makes them convenient.

Still, the SEC cautions that funds with the same target year may have different investments, risks, and fees. Check the stock-and-bond mix and whether it fits your retirement timing. The fund may suit you just fine. Still, check whether its investments fit when you expect to retire and how much risk you're comfortable taking.

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Find out what your 401(k) actually costs

Fee information is easy to overlook among the documents your plan sends. For participant-directed plans covered by federal disclosure rules, the Labor Department explains that investment and fee information generally must be provided annually, with certain account-level charges reported at least quarterly.

Ask for the investment comparison chart. Find each fund's expense ratio, then check for separate administrative or advisory charges. Your quarterly statement alone may not show every cost reducing your investment returns.

A 1% fee could cost thousands a year

An expense ratio is an annual fund operating cost expressed as a percentage of assets. On a hypothetical $300,000 investment, 1% works out to roughly $3,000 a year, compared with $300 at 0.10%, assuming a constant balance.

That's a $2,700 difference before considering lost growth. Compare funds with similar investments and purposes, though. Moving from a diversified retirement fund into a stock-only fund changes your risk as well as your costs.

Leave room for emergency savings

In his Vanity Fair money guide, Cuban recommended saving six months of income to handle job loss, moving, or other disruptions. He specified income, which could produce a larger target than six months of essential expenses.

Before increasing contributions beyond the match, consider what you'd live on if your paycheck stopped. At 55, a broken furnace shouldn't require selling retirement investments during a market slump.

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Don't count on investments to outrun credit card debt

Cuban has repeatedly emphasized paying off high-interest credit cards. The reasoning is straightforward: Interest charges keep accumulating whether your investments have a good year or a terrible one.

A card charging 24% creates a steep hurdle. Paying it down avoids interest on the amount repaid; a 24% investment return is hardly something to budget around. Consider the employer match separately, but weigh additional unmatched contributions against expensive debt rather than assuming more investing always comes first.

Use the extra contribution room available in your 50s

For 2026, the regular employee 401(k) contribution limit is $24,500. Workers ages 50 through 59 may contribute another $8,000 if their plan permits catch-ups, bringing the total to $32,500.

You don't need to reach that ceiling to make progress. Another $250 a month adds $30,000 over 10 years before investment gains or losses. If the maximum is out of reach, start with what your budget actually allows.

Don't take bigger risks just because you're behind

Someone who is 52 and hopes to retire at 67 still has 15 years to contribute. There's room for changes to matter, but less room for a concentrated bet that goes badly.

Review your overall investment mix before chasing whichever fund recently performed best. If you're behind, increasing contributions or adjusting your retirement date deserves consideration before taking substantially more risk. A retirement shortfall is stressful enough without making the outcome depend on one stock.

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Bottom line

This month, check three things: your contribution rate, whether you're getting the full employer match, and the expense ratios on your investments. These are smart moves for seniors, but there's good reason to make them in your 50s, while you still have working years to adjust.

If you're married, look at your accounts together. Different fund names may hide similar holdings, so review the investments underneath them. The useful question is how your combined savings fit your retirement plans.

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