Reported 1 day ago
While maxing out a 401(k) is a common goal for retirement savings, it's often unattainable for most Americans due to high contribution limits compared to average incomes. Additionally, focusing solely on a 401(k) can prevent individuals from taking advantage of IRAs, which offer greater investment flexibility and lower costs. Instead, a balanced approach is recommended: contribute enough to receive employer matching in your 401(k), prioritize maxing out an IRA, and then increase 401(k) contributions as your financial situation allows.
Source: YAHOO