The Best Approach to Funding Your 401(k) Plan
Saturday, 13 April 2024, 10:18
Maxing out isn't automatically your best bet
Although maxing out a 401(k) isn't easy, it's something you may be pushing yourself to try to do. But actually, there's a very good reason not to max out a 401(k) plan.
- 401(k)s charge high administrative fees, potentially diminishing your returns.
- Investment choices are limited in 401(k) plans compared to IRAs, affecting your overall strategy.
An IRA could make more sense
One benefit of IRAs over 401(k) plans is the ability to handpick stocks for greater potential returns. By exploring different investment vehicles like an IRA, you could significantly increase your retirement savings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.