Why should you invest in a 401K?
All are important
O It provides a tax benefit (you do not pay taxes on the money you contribute).
Some companies will match your contributions
You can invest it in mutual funds to diversify your portfolio



Answer :

Final answer:

Investing in a 401(k) provides tax benefits, employer matching, and diversification through mutual funds.


Explanation:

Investing in a 401(k) offers several benefits:

  1. Tax Benefit: Contributions are tax-deferred, meaning you do not pay taxes on the money you contribute until you withdraw it.
  2. Employer Matching: Some companies will match your contributions, effectively giving you free money towards your retirement.
  3. Diversification: You can invest your 401(k) funds in mutual funds to diversify your portfolio and potentially increase your returns over time.

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