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How does a 401(k) retirement account work?
Why do financial advisors emphasize contributing to an employer-sponsored 401(k) over a standard savings account?
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SaveSmart
asked 1mo ago · 10 rep
1 Answer(s)
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A 401(k) is a tax-advantaged investment account. You contribute pre-tax dollars straight from your paycheck, lowering your taxable income today. The money is invested in the stock market to compound over decades, and many employers offer 'matching' funds, which is essentially free money.
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WealthAdvisor
answered 1mo ago