It's hard to find something everybody agrees on.

Crunchy or smooth?

Smooth.

Mac or PC?

Fries or onion rings?

Fries.

But if there's one financial instrument that seems universally beloved, it's got to be the 401(k).

Everybody loves them.

People delay saving for a home, building an emergency fund, or even paying off high-interest debt in pursuit of this conquering hero, the tall, dark, and handsome 401(k).

[Southern accent] My hero!

There's a whole lot to love with the 401(k).

So saddle up and take a ride to find out what makes this cowboy the darling of investors everywhere.

♪ The year was 1980, and the Revenue Act of 1978 was finally going into effect; and deep in the bill was a tiny provision, section 401, subsection (k).

Largely overlooked, section 401(k) allowed employees to defer taxes on bonuses and stock options, basically a way for rich executives to make more and pay less tax on it.

But everything changed in 1981, when the IRS ruled that employees could also contribute from their salary.

This was music to employers' ears.

Managing all those employee pensions was expensive, complicated, and downright risky.

[Southern accent] Maybe this new fella, 401(k), could replace the dusty old pensions of our grandpappies.

Before long, 401(k) fever was spreading like wildfire.

By 1996, 401(k) accounts held over a trillion dollars.

[whip cracks] How does it work?

Fundamentally, a 401(k) is an employer-sponsored investment account.

It lets you invest part of your paycheck and receive a tax benefit for doing so.

Like company-provided insurance programs, you have to opt in to participate.

The most attractive feature is the employer match.

Translation--if you save for your future, the boss rewards you with free money, matching your contribution dollar for dollar up to a limit.

Around half of 401(k)s offer an employer match, and this free money can come to thousands of extra dollars.

Then there's the sweet tax breaks.

Depending on the type of 401(k), your contributions could be pre-tax, meaning it lowers your taxable income for the year; or you can pay the tax now and allow that money to grow tax free.

The more you save, the less taxes you pay.

[Southern accent] Looking pretty spiffy over there, Mr. 401(k).

Oh, and don't forget that your contributions are being invested in stock and bond funds.

We have "Two Cents" episodes about those if you're not sure how they work.

Now you can just sit back and watch compound interest fatten your herd.

[Southern accent] Free money, big tax breaks, and investment growth!

What's not to love?

[whip cracks] [Southern accent] Hold your horses there, partner.

While the 401(k) has a lot going for it, there are a couple burrs under the saddle, like the risks of managing your own investment portfolios instead of leaving it to the professionals.

As 401(k)s soared in popularity during the '80s and '90s, billions of dollars flowed into risky sectors, like tech stocks; and when things came crashing down, like they did twice in the 2000s, many working folks were left adrift like a tumbleweed in the wind.

And did you know that Mr. 401(k) doesn't work for free?

A study by TD Ameritrade found that 73% of participants didn't know how much their 401(k) costs, while 37% weren't aware that they were paying fees at all.

Investment firms regularly rack up hefty fees since nobody is paying attention, with the average being around 1.4%.

And remember that juicy employer "match" we mentioned earlier?

Well, that might not end up being yours, thanks to 401(k) vesting.

Even though funds might appear in your account, they're only yours once you become vested, often three to five years after you get hired.

With the vast majority of millennials only expecting to stay in a job for a few years at the most, that's a lot of "free money" that never gets collected.

[whip cracks] Despite their perks and general popularity, 401(k)s have left a societal legacy that's, well, ugly.

See, 401(k)s were originally designed to be a supplement to worker pensions.

For most of the 20th century, it was common for workers to stay with a single employer for most of their lives; and for that loyalty, their company offered a defined benefit pension for the worker's golden years.

These plans offered steadiness and security with the employer watching over everyone's plans, from the janitor to the CEO.

By their peak in 1980, 38% of all private sector workers had an employer pension.

Today, only 13% of private sector workers have a pension.

And while 401(k)s have their perks, they're just not as stable or reliable.

401(k)s are also opt-in, which means you aren't automatically enrolled.

Left to their own devices, many employees simply aren't saving enough, if they're saving at all.

Of the 79% of workers eligible to save into a 401(k), only 41% opt to participate.

The National Institute on Retirement Security finds that the median retirement savings balance is just $3,000 for all working-age households and a mere $12,000 for those near retirement.

Most financial experts recommend a personal retirement savings rate between 10% to 15%.

The real rates are between 1% and 3%.

The 401(k) was designed to be the side dish, not the main course.

Saddling workers with the "opportunity" to manage their own retirements has created a national crisis in retirement preparedness.

But the good news is that if you know its place and use it wisely, a 401(k) can be a great part of your financial toolkit.

Since pensions are going the way of the horse and buggy, you'll need your 401(k) to be galloping double-time to keep from being left in the dust.

Take advantage of it, and you'll be riding into the sunset instead of off a cliff.

(both) And that's our "Two Cents."