Can I invest in stocks through my 401(k)?

Yes, and for most people it is the best place to start. A 401(k) is a retirement account through your employer, and the money in it is invested in a menu of funds the plan provides. That menu nearly always includes a low-cost S&P 500 or total-market index fund and a set of target-date funds. Pick one of those and you are investing in stocks.

What you usually cannot do in a 401(k) is buy individual companies. A few plans offer a "brokerage window" that allows it, but most keep to the fund menu. For a beginner that is a feature; it keeps the account simple.

The reason to prioritise it is the match. Many employers contribute 50 cents or a dollar for every dollar you put in, up to some percentage of your salary. That is an immediate 50 to 100 percent return on those dollars, which nothing else offers. At minimum, contribute enough to capture the whole match.

Taxes work in your favour too. Traditional 401(k) contributions come out of your paycheck before tax, lowering this year’s bill, and the money grows untaxed until you withdraw it in retirement. Many plans also offer a Roth 401(k) option, where contributions are after-tax and withdrawals are tax-free.