Reported about 18 hours ago
Financial experts often advocate for maximizing contributions to retirement accounts like 401(k)s and Roth IRAs to build wealth, but many households struggle to meet these goals. With a maximum 401(k) contribution limit of $23,500 for the year, only 14% of workers manage to fully contribute. Discussions among users on platforms like Reddit reveal a divide: while some high earners can afford to max out, many others cite significant financial obligations like student loans, housing costs, and childcare that hinder their ability to do so. Experts recommend a balanced approach, focusing on debt reduction before attempting to fully fund retirement accounts.
Source: YAHOO