A San Francisco-based CEO with $9.8 million in his retirement savings plan has divided opinion after refusing to take his wife on a vacation. Kevin Xu, founder and CEO of Alpha AI, revealed in a social media post that he had $3,000 in his checking account and only $296 in his savings account. His 401(k), however, holds a significant percentage of his savings with a balance of $9.8 million.
What is a 401(k)?
A 401(k) is a workplace retirement plan in the United States that allows employees to contribute a portion of their paycheck to long-term investments. Employers may offer a match on employee contributions. However, withdrawal from a 401(k) account attracts a penalty until the participant reaches retirement age.
CEO refuses to take wife on vacation
In a post shared on the social media platform X, Kevin Xu revealed that his 401k account holds $9.8 million. In comparison, his savings and checking account have a much lower balance of $296 and $3,000 respectively.
His X bio also states that he is a Stanford graduate with a net worth of $10.9 million.
Despite technically being a millionaire, Xu refused to take his wife on vacation claiming he is broke. He admitted as much in his X post.
“401k $9.8mil. Checking $3000. Savings $296,” he wrote.
{{/usCountry}}“401k $9.8mil. Checking $3000. Savings $296,” he wrote.
{{/usCountry}}“Wife - Let's go on vacation? Me - Can't, we're broke,” he added. “Few understand.”