A 401(k) plan is a great place to accumulate retirement funds. Here's an example: You earn $25,000 a year at age 25 and receive a 4% raise per year. If you put 6% of your salary into a 401(k) plan, you'll accumulate about $470,000 (before taxes) by age 65 assuming a 6% rate of return. By contrast, if you save at the same rate in a taxable account outside a 401(k) plan, you'll end up with about $350,000 (assuming a 25% tax rate).
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window). UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.