I look at it differently........"A 401(k) is an employer-sponsored retirement savings plan that allows employees to invest a portion of their paycheck, often before taxes are deducted, to save for the future. It offers significant tax advantages—either immediate tax breaks or tax-free withdrawals in retirement—and often includes employer-matching contributions, essentially providing free money. In addition the majority of the money is invested in Passive funds, rather than active funds and over time Passive funds tend to outperform Actively managed funds. "Over a 20-year horizon, passive funds (index trackers) generally outperform the majority of active funds, primarily due to lower fees and consistent market-tracking returns. Studies, such as those from S&P Global, show that less than 5% of U.S. active managers beat their benchmarks over 20 years, largely because higher fees, such as 0.75% for active vs. lower for passive, compound over decades".
