<human>: What are the advantages of having a 401k?
<bot>: The primary advantage of having a 401(k) plan is that it allows you to save for retirement early and often. This can help build up a sizable nest egg over time, which will provide financial security in your later years. Additionally, 401(k) plans typically have higher contribution limits than other savings options such as Roth IRAs or traditional IRAs, allowing you to maximize your retirement savings potential. Lastly, 401(k)s offer an opportunity to diversify your investments, providing more stability during market downturns.