Ignoring Tax-Advantaged Accounts

Employer match = free money. $23.5K/year × 40 years at 7% = $5.3M. Max 401(k) first.

The 2026 limits are $23,500 for a 401(k) and $7,000 for an IRA, with Roth IRA growth tax-free forever. Investing $23,500/year from age 25 to 65 at 7% returns yields $5.3 million in tax-deferred growth. Day-trading in a taxable account instead wastes free money.

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