[dheera]

> max out 401k plan works

What are the advantages of 401k instead of say dumping it into half-VOO half-crypto and making millions one way or another?

[pushrax]

The variance in potential outcomes of holding VOO is much, much lower than the variance of holding crypto.

Buying VOO buys a share of the profits of the work of many millions of people. It also speculates that other people will continue to want to buy those profits.

Buying a token only speculates that more people will want to buy that particular token. It's much harder to project that people will continue to want it.

[dheera]

Oh yes. So that's why half-half.

[pushrax]

A risk parity approach would say more like 95% to 5%, but that works too.

[dheera]

Oh sure, one half can be bigger than the other half.

[MattGaiser]

A 401K is a box, not a specific investment. You can put things like VOO in the box. Anything in the box is tax advantaged however.

[whateveracct]

Tax advantages basically mean you make the dollars invested inherently worth more

[zhdc1]

Tax deferment and stability.

[tamaharbor]

And hopefully, taxes will be same or lower when you retire.