Importance of 401k Participation

Not participating in a 401k can lead to significant missed opportunities for wealth building. Statistics show that nearly 40% of individuals with access to a 401k are not contributing, often due to a misunderstanding of their enrollment status. For example, someone making a median household income of around $80,000 could miss out on over $3.5 million by not participating from age 20 to retirement. It's crucial to recognize the long-term benefits of starting contributions early, as even modest savings can accumulate significantly through the power of compounding.