No. 1 Way a 401(k) Plan Can Make You a Millionaire
Written by
Laura Beck
Edited by
Rebekah Evans
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Think your 401(k) is just another retirement account? Think again. According to financial expert Thomas Brock of Annuity.org, your 401(k) is actually your secret weapon for building serious wealth — if you know how to use it right.
The Magic of Triple Benefits
“A 401(k) plan is much more than a mere savings account for retirement,” Brock said. He breaks down three key advantages: tax breaks on what you put in, investment opportunities across various funds and tax-deferred growth on everything your investments earn.
Free Money Alert
Here’s where it gets good: employer matching. Brock emphasized this as “a highly rewarding benefit that every worker should strive to capture.” It’s literally free money that many people leave on the table.
Beyond Basic Savings
Forget regular savings accounts. 401(k) plans pack way more punch. As Brock explained, their features “facilitate much greater wealth accumulation potential than achievable via a simple, interest-bearing savings account.”
The Million-Dollar Difference
How much more are we talking? “The differential can easily amount to hundreds of thousands or millions of dollars,” Brock said, with steady saving and investing over decades. That’s a lot more than you’d get from a basic savings account earning pennies in interest.
While it might take some time to see those big numbers, Brock insists the math is clear: consistent contributions plus employer matching plus tax advantages equals your best shot at hitting that million-dollar mark.
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