<prompt> Human: Hi,Im at 25 tax slab. Im wondering whether the tax I save from the contribution I make to 401k same as interest gain that I gain from stock market had I invested that in stocks by myself? Stock market averages at 6. Compared to that 25 is a very big number. Am I missing anything?  <response>: Ideally youd put your 401k contributions into the stock market in the form of mutual fundsETFs that invest in equities. This way you get the immediate return of whatever match your employer provides, the one-time 25 deduction, and the annual 6 average return on your investment.For that 25 deduction and other things tax-free growth, protection from bankruptcy, etc, you trade liquidity not as easy access as a taxable account before retirement age. 